16 - Organized labor and the state

Summary

This chapter turns to two institutions – parties and unions – given little attention earlier. Parties function as parts of the state, and through them unions are incorporated into the state. This incorporation is political, in that through it the unions acquiesce in the state's goal of economic reproduction. In many countries unions retain economic independence, through which a form of workplace justice is still realized.

Economic, political, and ideological state activity

State activity that ultimately serves the reproduction of the economy falls into several distinct categories. Sometimes that activity is primarily political, as when the state channels dissent into the parliamentary process. Sometimes state activity is primarily economic, as when it puts a floor under demand with welfare spending and when it makes capital outlays to promote growth. The activity is judged political or economic by its direct results; the integration of dissent is a political whereas the floor under demand is an economic result. The results of state activity become means toward the goal of economic reproduction. Since all state activity is inherently political, we must go to its results to distinguish these kinds of activity within it. These kinds of activity correspond to the variety of conditions needed for economic reproduction. Both favorable political and favorable economic conditions are needed for economic reproduction. In addition, there is also need for favorable ideological conditions, and if these are lacking the state can attempt to supply them too.