May Day for Who?

"Their wages had gone down by a full third in the past two years, and a storm of discontent was brewing that was likely to break any day. Only a month after Marija had become a beef-trimmer the canning factory that she had left posted a cut that would divide the girls’ earnings almost squarely in half; and so great was the indignation at this that they marched out without even a parley, and organized in the street outside. One of the girls had read somewhere that a red flag was the proper symbol for oppressed workers, and so they mounted one, and paraded all about the yards, yelling with rage."

 (Upton Sinclair, The Jungle, 1906)

Today, working-class interests are back in the public sphere. New York State is clearly debating a progressive agenda, which covers the gamut from rent control, the minimum wage, transportation policy, and the gig economy. From what I've seen, the progressive approach is to put the agenda forward, and work the details later. I caution the zealous to tread steadily.

Rent control, for example, has populist appeal. But in New York City after World War Two, this led to disinvestment in older neighborhoods, ultimately ending in urban blight. (See a previous blog post on South Bronx decline and revival). Changes to rent control, beginning in 1974, provided a balanced approach that allowed new market development while preserving some affordable housing. Small, multifamily properties; found in places like Queens and Brooklyn; are the foundation of middle-class investment. Universal rent control, as proposed, would soak these working savers as much as it would "soak the rich". 

As we debate the path forward in the digital age, consider putting away the spite towards either side (owner and worker), and work towards creating upward mobility (which in many aspects has stalled) by "sharing the pie".