In Wealth of Nations and other works, Adam Smith pointed out that essentially the only way that workers could participate fairly in a capitalist system would be to form unions. Adam Smith, the supposed darling of capitalists, actually favored labor unions. Otherwise all employees would inevitably have the status and economic power of slaves. That's how it was in the 19th century. Dickens' best novels are basically horror stories about brutal British labor conditions. Hence the word "Dickensian".

In the US, the enabling legislation was passed under the New Deal. Before that, unions were practically illegal. The middle class in the US was very small before the 1950's.

For most of human history society was characterized by a small wealthy ruling class dominating the much larger impoverished and disempowered masses. That's the historical model. The present period of relative middle-class prosperity is widely considered to be an aberration of history. Ultimately the goal of union-busting and other tactics is to re-establish the historical model.

This year, my wife built a manufacturing software product for GM. She was in Detroit with a them of software developers, and she had another development team in China. They built a great product, and now GM uses it in Brazil.

Their product saves GM millions of dollars over GM's old system. This is the sort of thing the North American auto OEMs have been doing for years. These nasty Southern senators cannot even imagine this. No union involved, just worldwide brains and hard work.

Now, probably, she will have to get another job. GM is her company's biggest customer. She is great. She has worked all over the world. Do you have a new job for her? She can help you. Andrew Leonard probably will give you my e-mail address.

I agree with many of your historical points and share your concerns.

But with GM, there is a slightly different issue. Hypothetically, if the union made real concessions here, GM would not need the government: it could obtain a conventional loan. The only reason the government is involved at all is that no rational lender would lend money into this business model. It's axiomatic: if the government must be the lender, the deal must stink.

My personal hope is that the UAW will go back and get some more concessions, and then perhaps the government can bridge them over to the summer of 2009, when they can start selling cars again and get conventional financing. I don't want to see their assets sold to Honda and Toyota, where perhaps 60% of the work force would eventually be retained to work on a few carryover product lines at 75% of their wages. Better would be a wage cut now and retained American ownership of the assets.

I do disagree slightly that people like Charles Dickens or novels like The Jungle accurately captured everything having to do with the 19th century. It's almost impossible for us to imagine those times, in terms of daily existence, but if you study those authors and their contemporary reception, you see a lot of apparently decent criticism that some of those guys were pushing a very one sided picture. I read Bleak House, for example, after attending law school, and came away with the impression that Dickens did not know very much about the law; his satire had a "cheap seats," dim reflection feel to it, at least to my way of thinking - but you would never know that if you studied it as a literature student. Same with the Jungle. There's a lot of information on the Lake Michigan industrial immigrant experience which paints a very different, and much more pleasant, picture of the age.

Hypothetically, if the union made real concessions here, GM would not need the government

Hypothetically? Union concessions have already been made. Union concessions are not operating capital.

The only reason the government is involved at all is that no rational lender would lend money into this business model.

Banks have lent money into this business model for decades. What, you think the US automakers have never made a profit? You're barking up the wrong tree. US automakers have typically made billions, and that was before any union concessions. They're not making money because there's a recession and a major credit freeze going on. That has nothing to do with the business models of the US automakers.

Possibly you haven't noticed that the big banks themselves have been accused of grossly irrational behavior and have themselves been getting bailed out - in trillions, not billions. Would you call them or the US treasury "rational lenders"?

I do disagree slightly that people like Charles Dickens or novels like The Jungle accurately captured everything having to do with the 19th century.

You're reading something into my posts that isn't there. Where did I say that anybody "accurately captured everything having to do with the 19th century"?

It's almost impossible for us to imagine those times

Impossible for you maybe, but others may not share your limitations.

You don't have to imagine. What, you think there aren't any sweatshops any more? There are plenty all over the country. Most of your clothes are made in sweatshops in Asia, and if you don't believe they're sweatshops it's because you don't know anything about them.

Try googling up "sweatshops" and look at the pictures. They're still around, and they're quite Dickensian. Very 19th-century.

There's a lot of information on the Lake Michigan industrial immigrant experience which paints a very different, and much more pleasant, picture of the age.

Lot's, huh? Try finding some and get back to us.

RON GETTELFINGER’S DESTRUCTION OF UAW PRESIDENT WALTER REUTHER’S RETIREES

IMPERATIVE AUTO RETIREE HEALTH CARE

http://www.speroforum.com/site/print.asp?idarticle=16991

UAW OFFICIALS BETRAY AUTO WORKERS [2007]...

http://unionreview.com/insights-analysis-uaw-betrays-autoworkers

VICTOR REUTHER SPEECH 50TH ANNIVERSARY OF THE UAW FLINT RALLY [1987]...

http://westfallmike.tripod.com/Page12.htm

MIKE WESTFALL SPEECH 50TH ANNIVERSARY OF THE UAW FLINT RALLY [1987]...

http://westfallmike.tripod.com/Page11.htm

HISTORIC UAW LEADER SPEAKS OUT FOR RETIREES AND WORKERS [2007]…

http://www.intellectualconservative.com/2007/08/11/interview-with-whitey-hale/

UAW BLACK OCTOBER

http://www.uawndm.org/ndmportal/modules.php?name=News&file=article&sid=157

EASTERN ECONOMIC MANUFACTURING SPEECH [1985] …

http://westfallmike.tripod.com/Page14.htm

ROGER & ME –FLINT CONTROVERSY [1990]…

http://westfallmike.tripod.com/Page10.htm

ARCHIVES AND ADDITIONAL INFORMATION [1976-2008]…

http://www.umflint.edu/library/archives/westfall.htm

http://michaelwestfall.tripod.com/id50.html

http://westfallmike.tripod.com/