LABOR DAY IS BECOMING A SICK JOKE

As Harold Meyerson points out, Labor Day ain't what it used to be.

According to the Department of Labor web site, "Labor Day, the first Monday in September, is a creation of the labor movement and is dedicated to the social and economic achievements of American workers. It constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country." These days the "workers" are contributing more but have less strength, prosperity and well-being of their own.

As a remarkable story by Steven Greenhouse and David Leonhardt in Monday's New York Times makes abundantly clear, wages and salaries now make up the lowest share of gross domestic product since 1947, when the government began measuring such things. Corporate profits, by contrast, have risen to their highest share of the GDP since the mid-'60s -- a gain that has come chiefly at the expense of American workers.

Don't take my word for it. According to a report by Goldman Sachs economists, "the most important contributor to higher profit margins over the past five years has been a decline in labor's share of national income."
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But finger a corporation for exploiting its workers and you're trafficking in class warfare. Of late a number of my fellow pundits have charged that Democratic politicians concerned about the further expansion of Wal-Mart are simply pandering to unions. Wal-Mart offers low prices and jobs to economically depressed communities, they argue. What's wrong with that?

Were that all that Wal-Mart did, of course, the answer would be "nothing." But as business writer Barry Lynn demonstrated in a brilliant essay in the July issue of Harper's, Wal-Mart also exploits its position as the biggest retailer in human history -- 20 percent of all retail transactions in the United States take place at Wal-Marts, Lynn wrote -- to drive down wages and benefits all across the economy. The living standards of supermarket workers have been diminished in the process, but Wal-Mart's reach extends into manufacturing and shipping as well. Thousands of workers have been let go at Kraft, Lynn shows, due to the economies that Wal-Mart forced on the company. Of Wal-Mart's 10 top suppliers in 1994, four have filed bankruptcies.

For the bottom 90 percent of the American workforce, work just doesn't pay, or provide security, as it used to.