Posts tagged Ford

In reply to a reply by J.H. Huebert and Walter Block

J.H. Huebert and Walter Block have recently published an essay which claims to be a reply to Roderick Long’s essay on left-libertarianism for Cato Unbound. Huebert and Block insist that they are going to set the record straight on the correct libertarian view of these matters. But it’s not clear that they have succeeded in even setting the record straight on Roderick’s view of these matters. For example, I think they have clearly and grossly misread him on the question of selective tax breaks for politically-connected big businesses. (Roderick never claimed that getting selective tax breaks are morally equivalent to receiving a government subsidy; only that firms or practices that get a comparative advantage from government taxes on their competitors are, like firms or practices that get a comparative advantage from government subsidies, not good examples of the free market at work.) Similarly, their attempt at a response to Roderick’s claims about big-box retailers like Wal-Mart, and the importance of using government-subsidized roads to the success of their business model, wavers between an attack on a claim that Roderick never made — that Wal-Mart deserves blame for their successful exploitation of government-subsidized roads — and willfully obtuse replies to the claim that he did make — that Wal-Mart’s road-dependent business model shouldn’t be counted as an example of the free market at work, and that if Wal-Mart had to pay the full costs of its business model, without government subsidies to cross-country freight trucking, it would lose some or all of the comparative advantage that it currently holds over smaller and more local competitors. (Did you know that, since we all use government roads sometimes, that means we are all getting a subsidy like Wal-Mart? Hey, you know, back in May I got a $600 check from the U.S. Department of the Treasury, which was supposed to be for economic stimulus. Just like how AIG gets $85,000,000,000 checks from the U.S. Department of the Treasury, for the sake of economic stimulus! So how could I possibly claim that AIG gets government privileges that I don’t enjoy? Well. See my discussion with Will Wilkinson in a comment thread about the original article.)

In any case, though, Roderick has promised a reply, which I eagerly look forward to. My main reason for mentioning Huebert and Block’s essay here is that it contains a link to my old post Free the Unions (and all political prisoners)! (2004-05-01), and four paragraphs which purport to be a reply to my argument, and the claims Roderick makes on the basis of that argument. Here are those four paragraphs:

Those Poor Unions

Long also laments that our hampered free market doesn’t give unions enough power. He writes: Legal restrictions on labor organizing also make it harder for such workers to organize collectively on their own behalf.

Given that the law allows some workers to not only organize themselves but also coercively organize others, it’s not clear what Long is talking about. To support his claim, he cites a blog post which laments that U.S. labor laws do not go far enough. We should support current labor laws, says Long’s source, but ideally we will return to the days of more militant unions.

You remember militant unions – the kind that used to (and, well, still do) beat and kill workers who do not cooperate with them. Long and his comrade, of course, make no mention of the unions’ bloody history.

Unions are like a tapeworm on the economy, sucking sustenance out of businesses. The entire rust belt is a result of unions demanding wages higher than worker productivity. The present problems of the Detroit Three (Ford, Chrysler, General Motors) are mainly dues to their foolishness in not withstanding the unwarranted demands of the United Auto Workers. But, Long can rejoice: under an Obama administration, these economic scourges are likely to obtain even more power.

— J. H. Huebert and Walter Block (2008-11-24): In Defense of Corporations, Tax Breaks, and Wal-Mart

This is a bizarre misinterpretation of my post, and hard to understand how anyone could make it other than through utter carelessness or willful misreading.

The post that they are referring to was the first in a series of annual May 1 posts, commemorating International Workers’ Day — a grassroots labor holiday originally organized by anarchists, to honor the memory of the five anarchist organizers and agitators who were murdered by the state of Illinois after the Haymarket Riot.

Block and Huebert claim to be puzzled by what Roderick could mean when he says that, due to government regimentation of labor unions, labor organizing is substantially more restricted than it would be in a free market. I’m unclear as to what they find unclear, because if it was not clear to them already, the footnoted post by me, which they claim to have read, goes ahead and lists several of the restrictions in question.

The Wagner Act was the capstone of years of government promotion of conservative, AFL-line unions in order to subvert the organizing efforts of decentralized, uncompromising, radical unions such as the IWW and to avoid the previous year’s tumultuous general strikes in San Francisco, Toledo, and Minneapolis. The labor movement as we know it today was created by government bureaucrats who effectively created a massive subsidy program for conservative unions which followed the AFL and CIO models of organizing–which emphatically did not include general strikes or demands for worker ownership of firms. Once the NRLB-recognized unions had swept over the workforce and co-opted most of the movement for organized labor, the second blow of the one-two punch fell: government benefits always mean government strings attached, and in this case it was the Taft-Hartley Act of 1947, which pulled the activities of the recognized unions firmly into the regulatory grip of the federal government. Both the internal culture of post-Wagner mainstream unions, and the external controls of the federal labor regulatory apparatus, have dramatically hamstrung the labor movement for the past half-century. Union methods are legally restricted to collective bargaining and limited strikes (which cannot legally be expanded to secondary strikes, and which can be, and have been, broken by arbitrary fiat of the President). Union hiring halls are banned. Union resources have been systematically sapped by banning closed shop contracts, and encouraging states to ban union shop contracts–thus forcing unions to represent free-riding employees who do not join them and do not contribute dues. Union demands are effectively constrained to modest (and easily revoked) improvements in wages and conditions.

— GT 2004-05-01: Free the Unions (and all political prisoners)!

Of course Block and Huebert are right that government patronage grants substantial illegitimate privileges to a certain kind of union (the establishmentarian, conservative unionism of the AFL-CIO and Change to Win [sic]). But those privileges come at the cost of accepting an extensive and intrusive set of government regulations on official union activity. The result is not only a violation of the rights of employers to refuse to bargain with union reps, but also a substantial government subsidy for conservative unionism as against competing forms of union organizing, like those practiced by anti-establishmentarian, radical unions like the Industrial Workers of the World — tactics like minority unionism (crowded out of the market by government-subsidized majoritarian collective bargaining), wildcat strikes (illegal under the Wagner Act), secondary strikes and boycotts (illegal under the Taft-Hartley Act), general strikes (ditto), union hiring halls (double ditto), and so on. The combination of government privilege with government controls may benefit the select outfits that toe the establishmentarian line and get their hands on the government loot. But it does so at the expense of the goals that those organizations supposedly support — in this case, organizing workers for the sake of greater control over the conditions of their labor. I know that Walter Block is perfectly well aware of the way this works when it comes to tax-funded education vouchers for private schooling: although the selected schools that receive the vouchers may profit, the availability and quality of education suffers, because of the way that government privileges squash unofficial competitors who do not qualify for the government hand-out, and also because of the way that government controls restrain the activities that the remaining privileged-and-regulated schools can perform. Have Block and Huebert failed to apply the same analysis to privileged-and-regulated labor unions, and the availability and quality of labor organizing, because they are simply ignorant of the restrictions imposed on NLRB-recognized unions? Or because they are aware of the restrictions, but it hasn’t occurred to them that they might matter as much as the government-granted subsidies?

One way or the other, the post closes by calling for the immediate and complete repeal of the Wagner Act and the Taft Hartley Act, and the complete abolition of the National Labor Relations Board, and all other forms of political patronage and political control in labor organizing, which I argued would always hold the labor movement back from its professed goals:

Don’t get me wrong: the modern labor movement, for all its flaws and limitations, is the reflection (no matter how distorted) of an honorable effort; it deserves our support and does some good. Union bosses, corporate bosses, and government bureaucrats may work to co-opt organized labor to their own ends, but rank-and-file workers have perfectly good reasons to support AFL-style union organizing: modern unions may not be accountable enough to rank-and-file workers, but they are more accountable than corporate bureaucracy; modern unions bosses don’t care enough about giving workers direct control in their own workplace, but they care more than corporate bosses, who make most of their living by denying workers such control. The labor movement, like all too many other honorable movements for social justice in the 20th century, has become a prisoner of politics: a political situation has been created in which the most rational thing for most workers to do is to muddle through with a co-opted and carefully regulated labor movement that helps them in some ways but undermines their long-term prospects. It doesn’t make sense to respond to a situation like that with blanket denunciations of organized labor; the best thing to do is to support our fellow workers within the labor movement as it is constrained today, but also to work to change the political situation that constrains it, and to set it free. That means loosening the ties that bind the union bosses to the corporate and government bureaucrats, by working to repeal the Taft-Hartley Act, and abolish the apparatus of the NLRB, and working to build free, vibrant, militant unions once again.

— GT 2004-05-01: Free the Unions (and all political prisoners)!

The comments expressing some watered support for the actually-existing labor movement are grossly misrepresented by Block and Huebert as support [for] current labor laws (in fact, the point was that the labor movement deserves some watered support in spite of the baleful effects of government labor laws on it). And my call for all existing government labor laws to be repealed and replaced with nothing but free association is, astonishingly, glossed by Block and Huebert as a [lament] that U.S. labor laws do not go far enough.

This is followed by a tirade about my use of the word militant to describe my ideal for free unionism. This is apparently taken, just as such, to be an endorsement of vigilante violence against non-union or anti-union workers, by unions of the kind that used to (and, well, still do) beat and kill workers who do not cooperate with them. This is an absurd and unwarranted misreading. Of course, there have been unions whose members used vigilante violence to achieve their goals. I find the use of aggressive violence, against fellow workers or against anyone else, to be completely reprehensible. But that’s not what militancy refers to in the context of labor organizing. Labor militancy is a term of art that refers to the degree to which unions are willing to use confrontational tactics with bosses, as opposed to back-room negotiations or appeasement of the boss’s demands — where confrontational means just that, not violent. Some militant unions endorsed confrontation in the form of violence against bosses, or their property, or scabs. Others refused to on principle, and expressed their militancy through strictly nonviolent forms of confrontation. I agree with the latter, and what I have argued for in more or less everything I have ever written about unions is the principle that fellow worker Joe Ettor set out when he was working to help organize the great Lawrence textile strike of 1912 with the IWW:

If the workers of the world want to win, all they have to do is recognize their own solidarity. They have nothing to do but fold their arms and the world will stop. The workers are more powerful with their hands in their pockets than all the property of the capitalists. As long as the workers keep their hands in their pockets, the capitalists cannot put theirs there. With passive resistance, with the workers absolutely refusing to move, lying absolutely silent, they are more powerful than all the weapons & instruments that the other side has for attack.

Block and Huebert complain that I make no mention of the unions’ bloody history. (An odd claim, since they seem to think that my use of the adjective militant is an explicit reference to it.) But I may as well complain that Block and Huebert make no mention of the bloody history of bosses who called out hired muscle, injunction-wielding courts, city cops, state militia, or the federal military to commit every sort of atrocity against striking workers, their wives, and their children. If Block and Huebert have not mentioned the extensive use of aggressive violence by bosses, who have always been far more politically powerful and had far greater resources for hiring on thugs than the unions had, and who were frequently able to call out the repressive forces of the State itself in addition to their own thugs — if they have not mentioned it, I say, because (of course, of course) they don’t agree with it, and intend only to defend the actions of bosses that are consonant with libertarian principles, then that’s fine; but then the reason that I didn’t spend a long time talking about vigilante violence by unionists is because (of course, of course), I don’t agree with that, and intend only to defend the actions of union organizers that are consonant with libertarian principles. But if Block want violence mentioned, then it is totally irresponsible for them to insist on such a wildly distorted and one-sided presentation of the matter, since unionists were victims of far more intense and far more systematic violence than they ever committed, and since much (but by no means all) of the violence attributed to unionists was in fact defensive force against those same company and government thugs.

Huebert and Block close with a laughably overheated ritualistic denunciation of labor unions as a tapeworm on the economy, sucking sustenance out of businesses, and an astonishing monocausal theory of middle-American industrial decline, on which the entire rust belt is a result of unions demanding wages higher than worker productivity (!). Apparently decades of unsustainable malinvestment, public-private partnerships with city, state, and federal governments, corporate welfare, protectionist tariffs, bail-outs of failed business models, etc. have nothing to do with it.

But whether all that is accurate or inaccurate is something best hashed out elsewhere. For right now, my main concern is how wildly Block and Huebert have misrepresented the position that they claim to be arguing against, in the attempt to make it seem as though this overheated denunciation of state unionism had anything to do with the freed-market unionism that I advocate, or that Roderick endorsed via footnote. It is inconceivable that a post whose primary purpose was to condemn the effects of government labor laws and to call for the repeal of the Taft-Hartley Act and the Wagner Act, for the immediate and complete abolition of the National Labor Relations Board, and in general for the exorcism of all political command-and-control (including all enforced recognition, all political patronage, and all political regulation) from organized labor could be reasonably read as support for current coercive labor laws, let alone a call for their expansion (!). An error like that must either be the cause of extraordinarily careless reading, or willful misrepresentation. In either case, Block and Huebert ought to be embarrassed that they have published it.

What’s good for General Motors is good for American state capitalism

The so-called Big Three Detroit auto-makers are among the most publicly visible brontosaurs of mid-20th century cartelized state capitalism — massive, slow, stupid, and probably doomed to extinction. They are amalgamated, heavily subsidized mega-corporations that almost certainly never would have taken on the form, size, or concentration that they took on, had they actually had to do business under the discipline of a free market in labor and capital. In any case, they have little hope of surviving as they are without massive support from the State.

Last year, Ford, GM, and Chrysler received $25,000,000,000.00 in low-interest loans on sweetheart terms from the United States government for research and development on new cars and retooling existing factories. You and I and our fellow unwilling taxpayers will be left holding the bag if these perpetual fuck-ups should happen to default on their loans.

This year, they want $50,000,000,000.00.

We will no doubt be told that this kind of massive government bail-out for failing corporations is vital to sustaining the health of our free enterprise system. As I’ve said elsewhere, one of the strongest arguments for left-libertarianism and free market anti-capitalism is just to take a look at the Fortune 500, and then run your finger down from the top of the list, asking how much of each firm’s market capitalization and revenue stream would still exist in a world with no military-industrial complex, no government research grants or government contracts, no patent or copyright monopolies, no government seizures of land for concessions or leases or eminent domain, no Taft-Hartley Act, no government-guaranteed cheap credit infusions, and no government corporate welfare giveaways.

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