By the 1930s, the American labor movement aligned itself with the Democratic Party. Since its inception, the Democratic Party were staunch proponents of free trade. Under the progressive Presidents Woodrow Wilson and Franklin Roosevelt, political internationalism was merged with free trade economics. Meanwhile, much of the Republican Party was devoted to economically nationalist variants of capitalism. Since President Roosevelt enacted labor-friendly legislation during the New Deal, much of the leadership of the American labor movement became part of the Democratic Party coalition (a.k.a the New Deal Coalition). In the aftermath of World War II, American industry became the dominant economic force in the Free World. The American labor movement became staunch partisans for free trade within the New Deal Coalition. Warnings of job losses were ignored by much of the American labor movement until the 1970s. By the 1980s, much of American labor turned against free trade, when massive job losses occurred within unionized (and nonunion) industries. Membership in private sector industrial unions also declined. Even when Democratic Presidents Clinton and Obama betrayed union members with NAFTA, PNTR for China, and the TPP, American labor leaders still supported the Democratic Party as allegedly the lesser of two evils. Instead of joining with protectionist-nationalist conservatives and Republicans to form a new party, American labor continued to be an integral part of the Democratic coalition. Even worse, some unions continued to support destructive free trade agreements, in exchange for crumbs off the proverbial dinner table of the Democratic Party.
Betrayal of the American Worker on the Alter of Union Politics
“In the face of the proven advantage of high and increasing wage rates, it is hard to understand the position taken by some union leaders on tariff reduction. Are union leaders who favor further reduction of United States tariffs which can lead to unemployment and lower wages in this country acting in the best interest of their members? Can it be that since immigration laws prevent cheap foreign labor from competing in the labor market and since this country has not been under pressure from imports made with low-cost foreign labor for about 20 years, that some labor representatives have forgotten what it is like to see factories slacken and finally close because of unfair foreign competition?” Quoted from Lewis E. Lloyd, Tariffs: The Case for Protection
“In the early decades of US trade liberalization, organized labor was a consistent and reliable member of the free trade coalition that found a comfortable home in the Democratic Party. Unions supported Cordell Hull and the Reciprocal Trade Agreements Act of 1934; the AFL-CIO backed John F. Kennedy and his Trade Expansion Act of 1962.” Information quoted from Susan Margaret Collins, Imports, Exports, and the American Worker
“For organized labor in the early 1960s, establishing TAA was key to maintaining a free trade stance.” Information quoted from Susan Margaret Collins, Imports, Exports, and the American Worker
George Meany testified to the Senate in support of the Kennedy Trade Expansion Act of 1962: “There is no question whatever that adjustment assistance is essential to the success of trade expansion. And as we have said many times, it is indispensable to our support of the trade program as a whole.” Information quoted from Susan Margaret Collins, Imports, Exports, and the American Worker
As late as 1979, the UAW and its leader Charles Fraser supported “the benefits of free trade.” Information quoted from Susan Margaret Collins, Imports, Exports, and the American Worker
“1989: During the AFL-CIO convention a resolution was adopted that said they were opposed to increasing the number of employment based visas. They said it was better to invest in American workers.” Quoted from “A Legislative History of H-1B and Other Immigrant Work Visas,” Economic Immigration Dilemma Blog
“1993 will become known as the year when he AFL-CIO reversed their stance on immigration. At their 1993 convention they adopted a resolution that praised the role that immigrants have played ‘in building the nation and its democratic ideas.’ The resolution went even further by demonizing unidentified advocates of immigration reform for launching ‘a new hate campaign cynically designed to exploit public anxiety by making immigrants and refugees the scapegoats for economic and social problems.’ It concluded that ‘immigrants are not the cause of our nation’s problems’ and stated that ‘the AFL-CIO reiterates its long standing commitment to…provide fair opportunities for legal immigration and…due process of law for all people who enter, or attempt to enter, the United States illegally.’ This resolution set a new precedent for the AFL-CIO that foreign workers might be good for bolstering the unions sagging memberships.” Quoted from “A Legislative History of H-1B and Other Immigrant Work Visas,” Economic Immigration Dilemma Blog
“In 1996 the AFL-CIO allied itself with the National Association of Manufacturers (NAM), Americans for Tax Reform, the National Christian Coalition, and civil libertarians to oppose immigration changes. By joining with a coalition of some of the most anti-union organizations in the country, labor leaders succeeded in blocking immigration reform designed primarily to protect the economic well-being of low skilled workers in the nation. The alliance that the AFL-CIO made with H-1B advocates such as NAM probably have been major factors that led to the unions acceptance of H-1B.” Quoted from “A Legislative History of H-1B and Other Immigrant Work Visas,” Economic Immigration Dilemma Blog
“The AFL-CIO opposed the H-1B program since the early 1990s, but its involvement with the issue noticeably declined by 1998. They campaigned against the H-1B increase to 115,000 but in the end, withdrew its opposition. A decision was made within the AFL-CIO that they should not squander their political capital on white-collar workers that were for the most part not unionized and in some cases were hostile to unions.” Quoted from “A Legislative History of H-1B and Other Immigrant Work Visas,” Economic Immigration Dilemma Blog
“In April 2000 Henry Cisneros, former Secretary of Housing and Urban Development, proposed that unions and immigrant communities support expansion of the H-1B program in order to get amnesty. Pro immigration elements in the union heeded Cisneros’ advice and decided to support an increase of the H-1B quota. Even though the AFL-CIO was still holding to an official position that the H-1B program should not be expanded, they didn’t campaign against the massive proposed increase to 195,000. ‘Democratic Party heavyweights tried to convince the AFL-CIO that by supporting H-1B they could achieve a much more pressing goal, namely amnesty for illegal immigrants.’ Union insiders inside the AFL-CIO made a tacit deal with President Clinton. The Faustian bargain was that the unions would remain quiet on the H-1B increase and in return Clinton would get them amnesty. They told Clinton that he could do whatever he wanted with the H-1B bill even though they knew that Clinton wanted to sign the H-1B increase in order to retain election campaign funding from the high-tech industry. The only concession the AFL-CIO won was to get some toothless worker protections added to the bill, but those protections were filled with loopholes.” Quoted from “A Legislative History of H-1B and Other Immigrant Work Visas,” Economic Immigration Dilemma Blog
“The AFL-CIO kept their part of the deal but Clinton was never able to deliver them the amnesty that they wanted.” Quoted from “A Legislative History of H-1B and Other Immigrant Work Visas,” Economic Immigration Dilemma Blog
“The UAW fully supports this trade agreement because the automotive provisions…will create significantly greater market access for American auto exports and include strong, auto-specific safeguards to protect our domestic markets from potentially harmful surges of Korean automotive imports.” Bob King, head of the United Auto Workers (UAW) backing the Korea Free Trade Agreement (KORUS), 2011
The Utopian Globalism and Anti-Nationalism of the Free Traders, Communism, and Libertarians
“There are some, who maintain, that trade will regulate itself, and is not to be benefitted by the encouragements, or restraints of government. Such persons will imagine, that there is no need of a common directing power. This is one of those wild speculative paradoxes, which have grown into credit among us, contrary to the uniform practice and sense of the most enlightened nation.” Alexander Hamilton
“To preserve the ballance of trade in favour of a nation ought to be a leading aim of its policy. The avarice of individuals may frequently find its account in pursuing channels of traffic prejudicial to that ballance, to which the government may be able to oppose effectual impediments.” Alexander Hamilton
“All nations are friends in the nature of things.” Jean Baptiste-Say
Theodore Roosevelt strongly chastised “men whose ideals are purely material. These are the men who are willing to go for good government when they think it will pay, but who measure everything by the shop till; the people who are unable to appreciate any quality that is not a mercantile commodity; who do not understand that a poet may do far more for a country than the owner of a nail factory; who do not realize that no amount of commercial prosperity can supply the lack of heroic virtues or can in itself solve the terrible social problems which all the civilized world is now facing. The mere materialist is above all things, short sighted.”
“The antics of the bankers, brokers and Anglomaniacs generally are humiliating to a degree; but the bulk of the American people will I think surely stand behind the man who boldly and without flinching takes the American view. As you say, thank God I am not a free-trader. In this country pernicious indulgence in the doctrine of free trade seems inevitably to produce fatty degeneration of the moral fibre.” Theodore Roosevelt
“A Communist world will be a unified, organized world. The economic system will be one great organization, based upon the principle of planning now dawning in the U.S.S.R. The American Soviet government will be an important section in this world organization. In such a society there will be no tariffs or the many other barriers erected by capitalism against a free world interchange of goods. The raw material supplies of the world will be at the disposition of the peoples of the world.” Foster, William Z. Toward a Soviet America
“The system of non-regulated international trade cannot ensure peace. It can help to create a peaceful atmosphere, on the one condition: that men have a peaceful mental attitude…Peace within a nation requires the same condition…The essential task therefore is to create a peaceful mentality.” Louis Baudin
“I think getting General Electric into China and the Soviet Union is the biggest thing we can do for world peace.” A long-range strategist for General Electric, 1975
“In the present period of detente with the Soviet Union and China there is little, if any, chance that either nation would attack the United States unless it acutely fears an imminent attack by us.” Henry Niles of Business Executives Move for Vietnam Peace (BEM) Testimony to the House of Representatives Committee on Appropriations, 1975
“…if Caterpillar and Coca-Cola had cooperated with Mitsubishi before the war, perhaps Pearl Harbor could have been avoided.” President Jimmy Carter quoted by Judith Stein, Pivotal Decade
In 1979, TASS commentator, Timofey Guzhenko noted “Crisis phenomena in the capitalist economy have always served as a pretext for an intensification of protectionist trends in the legislative activities of bourgeois governments. But history shows that attempts to secure advantages by discriminating against partners have never brought long-term success.” “Groundless Western Allegations against Soviet Merchant Shipping Operations” TASS January 3, 1979
In October 1989, President Ceausescu told a delegation of businessmen from the Romanian-American Economic Council that “artificially imposed obstacles and restraints should be removed from the economic ties between the two countries.” “Ceausescu Urges US to Increase Bilateral Trade” Xinhua October 13, 1989
In a conversation with East German Socialist Unity Party (SED) economic boss Gunter Mittag, West German industrialist Otto Wolff noted in 1984 that: “…embargoes and protectionism are futile ways of exerting political pressure. The history of trade has shown that such practices have always harmed their authors. Otto Wolff called for the extension of trade and economic relations with the socialist countries and emphasized the multi-faceted export and import relations with the GDR in which small and medium enterprises are playing an increasing part.” “Guenter Mittag at Hanover Trade Fair” East German News Agency April 7, 1984
Mittag noted that “the GDR advocated free world trade. Mutually advantageous trade had a firm place in our trade with the capitalist states. It was part of our policy of peaceful co-existence. In the interests of the continuation of what had already been achieved in the process of detente in Europe great importance was ascribed to trade relations. At the same time this served the safeguarding of peace. When touring the Fair Guenter Mittag said that, as far as the capitalist countries’ relations with the socialist countries in the sense of peaceful coexistence were concerned, all attempts to differentiate between individual socialist countries were useless.” “GDR-FRG Relations: Mittag in Bonn and Hanover” East German News Agency April 18, 1980
Erich Honecker opposed economic nationalism as carried out by the West in 1987 by stating: “dangerous manifestations of protectionism, attempts at building barriers against competition and other obstacles to trade are making themselves noticeable. At the same time, our trade relations with the capitalist countries are part of our total dynamic economic development. We want to derive benefit for this through the purchase of raw materials and above all of equipment and plant.” “Meeting with Businessmen in Cologne” East German News Agency September 11, 1987
In 1987, Ceausecu noted that “states should give up any protectionist and discriminatory measures, any artificial barrier that prevent a normal development of international commerce.” “Nicolae Ceausescu’s Visit to Bulgaria” Agerpres October 12, 1987
“A strong manufacturing sector is not a requisite for a prosperous economy.” Office of Economic Research of the New York Stock Exchange, report 1984
“The move from an industrial society toward a ‘postindustrial’ service economy has been one of the greatest changes to effect the developed world since the Industrial Revolution. The progression of an economy such as America’s from agriculture to manufacturing to services is a natural change.” President Ronald Reagan Report to the Congress on Trade Agreements, 1985
“There aren’t American companies anymore and there aren’t Japanese companies or German companies. Everybody is global. Everybody is selling and producing in all markets.” Vice President and Chief Economist of Data Resources Institute David G. Hartman, 1987
“Pursuing a very aggressive foreign policy is an extremely expensive endeavor for the US government. The cost of maintaining a huge military force abroad is gigantic. It’s so big it puts a severe strain on the US economy, creating economic hardships here at home…I think the best foreign policy the US. Government could follow is to encourage private, nongovernment interactions between nations. I believe in maximizing trade of all sorts: business trade, athletic exchanges, cultural exchanges, tourism. I think the best way to create peace and good will is to maximize interchange at all levels” David Koch, Koch Industries 1987
“There is no mindset (at Colgate) that puts this country (the United States) first.” Cyrill Siewert, Chief Financial Officer (CFO) Colgate-Palmolive, 1989
“It does not make any difference whether a country makes computer chips or potato chips.” Michael Boskin, chairman of the Council of Economic Advisers under President George H.W. Bush
“There’s nothing to fear from globalism, free trade and a single worldwide currency…” Congressman Ron Paul (R-TX), 2001
“To be sure, many of our fellow citizens have experienced real hardships in our economic environment, which is becoming ever more internationally competitive. But the protectionist cures being advanced to address these hardships will make matters worse rather than better.
The loss of jobs over the past three years is attributable largely to rapid declines in the demand for industrial goods and to outsized gains in productivity that have caused effective supply to outstrip demand. Protectionism will do little to create jobs; and if foreigners retaliate, we will surely lose jobs. We need instead to discover the means to enhance the skills of our workforce and to further open markets here and abroad to allow our workers to compete effectively in the global marketplace.” Alan Greenspan, 2004
“We are not an American company.” Jeff Seabright, Vice President of Coca Cola, 2005
“Not new competitors. We have new resources, new cooperators. In the last 20 years, there’s been an enormous increase in the number of laborers available for cooperation with capital through private enterprise means. That’s what’s happening in Asia, in India and in much of the former Soviet Union. The really remarkable thing about the world is how people cooperate together. How somebody in China makes a little bit of your television set. Or somebody in Malaysia produces some rubber. And that rubber is used by somebody in the United States to put on the tip of a pencil, or in some other way. What has happened, has been an enormous expansion in the opportunities for cooperation.” Milton Friedman, 2006
“What we are trying to do is outline an entire strategy of becoming a Chinese company.” John Chambers, CEO of Cisco Systems, 2006
“Foreign subsidies are gifts to American consumers that should not be confiscated by our government in the form of import taxes.” Senator Pat Toomey (R-PA)
“GloCo must forcefully argue the case for globalization, showing that it helps the greater good as well as the bottom line. GloCo needs to demonstrate that globalization is likely to yield broad and sustainable benefits, including wider consumer choice, greater opportunity, economic development and more inclusive governance structures. It is in GloCo’s own self-interest to pursue these challenges with vigor.” GloCo-Motives: Arguing the Case for Globalization May 2006
“Even the venerable ABC World News has decided to indulge its worst instincts by airing—every night this week—a reality-based series called ‘Made in America.’ Caveat Emptor: ABC is selling dangerous, nationalistic propaganda… There is so much that is wrong about the theme and tone of ABC’s odyssey, from its assumption that Americans are gullible idiots to its reckless nationalism.” Dan Ikenson, Cato Institute Forbes March 1, 2011 commenting on the ABC documentary“Made in America”
Dan Ikenson of the Cato Institute described the 1950s in America as a time of “relative poverty” with “limited consumer choices, the inefficient production processes…massive trade barriers that compelled Americans to buy American, and the uneconomic work rules and wages commanded by once-powerful private sector labor unions.” Forbes March 1, 2011
“It had a profound impact on my thinking.” Ted Cruz, comments on how former utility executive Rolland Storey molded his economic thinking along the lines of the ideology espoused by Friedrich Hayek and Ludwig von Mises, 2012
“Instead of reading comic books, he (Ted Cruz) was reading Adam Smith, he was reading Milton Friedman, he was reading von Mises, he was reading Frederic Bastiat.” Rafael Cruz, Ted Cruz’s father, 2012
“He became a passionate follower of Milton Friedman, which isn’t exactly common in Texas high schools (compared with, say, football).” New York Times March 31, 2015
NEXT: Part 6 of the series: The Manifesto of Constitutional American Nationalism – Trade With The Enemies Of America
Nevin Gussack is a professional librarian, political commentator, and writer. His works appeared on the webpages of the Center for Intelligence Studies, Accuracy in Media, Economy in Crisis, and JRNyquist.com. He also appeared on America’s Survival Roku television program, WEI’s Make the Call radio program, and the veteran broadcaster Chuck Harder’s radio program For the People. Nevin received a double major from the State University of New York at Albany in History and Political Science. Since that time, he also received two Master’s Degrees in Social Studies Education from Florida Atlantic University and Library and Information Science from the University of South Florida. Nevin is the Director of Bear Witness Central in the West Palm Beach area.
