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American Compass’s Oren Cass joins Steve Hilton to announce a new project on a conservative future for the American labor movement.

Statement on a conservative future for the American labor movement.

A Conservative Future for the American Labor Movement

As we celebrate Labor Day, reducing unemployment and getting the COVID-impacted economy back to some semblance of normality is clearly the top economic task. But when that is done the economy will still face a critical labor market problem: too many workers earning too little. A recent Brookings study found that 44 percent of American adults workers make very little, with median annual earnings of just $18,000.

The tech industry buzzword “gig” has distracted society from important questions about the gig economy that are surprisingly traditional: whether a business has employees or contractors, and how it can avoid payroll taxes and legal liability. Countless Silicon Valley business models have been built under the guise of gigs.

The “gig” may soon be up for Uber. A judge’s ruling that ride-sharing services must treat their drivers as employees has both Uber and Lyft threatening to discontinue service in California, seemingly conceding that their money-losing business model relies not only on the subsidy of endless investor capital but also the legal arbitrage of ignoring the labor laws followed by others.

Senator Josh Hawley talks with American Compass executive director Oren Cass about the empty platitudes and hypocrisy of “woke capital” and why conservatives must work to prioritize the needs of workers and families in their economic policy agenda.

At Law and Liberty, I took part in a symposium debating the libertarian scholar Richard Epstein’s comparison of labor unions to predatory monopolies, which he described as the “classical liberal” view. 

Earlier this month I visited the National Civil Rights Museum in Memphis, located at the Lorraine Motel where Martin Luther King Jr. often stayed and where on April 4, 1968 he was assassinated while standing on the outside balcony, chatting with colleagues and getting ready for dinner.

Recent posts from Sam Hammond , Ed Dolan, and Oren Cass, have opened a very thoughtful debate on the role of redistribution in a future economic agenda. They rightly observe the corrosive effects of mindlessly expanding re­distributive policies without addressing many of the flaws in our current system that give rise to the need for such redistribution in the first place.

Repatriating supply chains to home shores has become an increasingly fashionable topic in the wake of the COVID-19 pandemic. Part of the rationale is to ensure that adequate redundancy and resiliency are built into our economies, even at the cost of “just in time” inventory accumulation practices (which have prioritized short term profitability at a cost of the kinds of supply shocks we are experiencing today).

Since the neoliberal era began in the 1970s, many public policy thinkers have assumed that America’s employment-based benefit system of welfare capitalism is doomed to extinction by the growth in freelance or gig workers. To replace employer benefits, the left tends to support welfare statism and the right tends to support welfare individualism, in the form of portable, individualized tax credits or savings accounts.

Analysts and commentators talk about today’s “precariate.” The term plays on the Marxist notion of the proletariat, recasting it to describe gig workers, college grads whose income is swallowed by student loan debt, and wage-earners who can’t stay ahead of heath costs, childcare costs, car repair bills, and credit card debt.

In March as Ohio began to shut down, Emily—a thirtysomething mom who asked that I not use her real name—worried about her family, her neighbors, and especially the elderly. She posted on her town’s Facebook page offering to grocery shop for those unable to go to the store, or to share a meal with anyone who might be hungry, saying that she’d feed them whatever she could out of her own kitchen.

Oren Cass discusses his book, The Once and Future Worker: A Vision for the Renewal of Work in America