Free market capitalism is praised for creating an efficient utilization of resources, producing goods with high demand and low cost. Uncontrolled, it also has the disadvantages of reducing competition through corporate consolidation, producing unemployment, and concentrating wealth.
During the last century, federal reforms were legislated to reduce practices that limited competition (anti-trust acts); create social safety nets (unemployment insurance); and mitigate the impact of the business cycle (fiscal and monetary policies of the Federal Reserve Bank).
In 1935, in an attempt to reduce labour conflict and provide for a greater sharing of wealth, the U. S. passed the National Labor Relations Act, allowing employees to establish collective bargaining through labour union representation. It became illegal for employers to interfere with the process of union certification, to attempt to intimidate employees, or to refuse to bargain in good faith.
We now have the sad situation in Wisconsin, in which the recently elected governor has announced that he doesn't believe in collective bargaining. His position is that management alone should establish wages, benefits, and working conditions. The rationale given is the need to reduce a projected state budget deficit. Further, he threatens the employees with massive layoffs, if he doesn't get his way.
These tactics are meant to intimidate employees and reduce their power in the workplace. The proper, honest way to amend a collective agreement is through negotiation, not by decree.
Prior to the passage of the NLRA, clashes between union organizers and management security were frequently violent. Employees advocating unionization could be fired and blacklisted. They fought back through sit-ins and wildcat strikes. I wonder if this is where we are headed again.
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