The Working Catholic: In Praise of Cash Bill Droel

It says “legal tender for all debts private and public.” But cash is out. Indeed, some businesses now refuse cash, including a hair salon in Los Angeles, a few pretentious chain restaurants and several small shops. Visa has declared “a war on cash,” reports New York Times (12/6/18). Other credit companies are implicit allies in that war. Only 30% of transactions by one survey currently involve cash, says Wall St. Journal (12/30/18). Most cash transactions are in small amounts; 55% of them are for less than $10. The popular alternative to cash is called a credit card. However, cards are also out. Nowadays a purchaser obtains ready credit through an app on a mobile device. It is not swiped; it is tapped.

We crusty old-timers prefer cash. This is not only because a cashless economy further impoverishes those without access to credit. There are other troubling consequences of going cashless, ones that threaten middle-class families.

Number One. Cash is or was a nearly universal societal benefit. The trend these days is to allow private companies to own public life. The outcome of this trend is generally no good. Prime evidence here in Chicago is the expensive parking facilities in the Loop and elsewhere. Citizens do not benefit from the revenue; a private entity does. Likewise, the ubiquitous cameras that catch any and all minor traffic miscues would be annoying enough if the tickets’ revenue went to our city. But a private company has the contract. Prohibiting cash in favor of private currency is another destruction of the public realm.

Number Two. A cashless private economy is premised on automation. Working-class jobs at what were once called cash registers are disappearing. It is entirely possible to stock one’s grocery cart and put the produce, meat and bread in one’s car without dealing with a grocery clerk. The same impersonal approach is taking over in restaurants. Banks don’t have tellers.

Number Three. Another result of cyber-automation is increased violation of privacy. The private company that extends credit and the retailer join forces to develop one’s consumer profile. This is used by the retailer to pitch more products or it is sold to other private companies. Also, cyber-banking and cyber-transactions expose one’s cyber-wallet to thieves. The best robbers these days eschew cash; they prefer hacking.

Number Four. It is true that credit, wisely obtained and carefully managed, can be a form of wealth. A home mortgage obtained from a neighborhood bank or credit union is an investment. Credit perhaps leads to wealth in sophisticated margin trading in 90-day stock options. Right? Most credit obtained by working families, however, is basically usury. There is no credit app (formerly called a credit card) that comes without a line of credit and interest fees. The singular factor that hampers the financial standing of working class families is credit app/card debt.

 Is it possible to manage a household without credit? It is possible, but it requires resistance to the new capitalism—a capital economy in which products are not that important but in which investment rules. How to manage without credit? Get a checking account from a neighborhood bank or credit union. Don’t deal with Wells Fargo or other national entities. Do not accept any line of credit on the account. Don’t cyber-shop too much. Use the currency that comes with a picture of President Andrew Jackson (1767-1845), President Ulysses Grant (1822-1885) or other notables. If you already have a credit card/app and you made only a partial payment last month, see a reputable, neighborhood-based finance advisor immediately.

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The Working Catholic: Strikes by Bill Droel

         Not so long ago strikes were deemed counterproductive, says Commonweal magazine (3/26/18). That was until this past February when 20,000 teachers in West Virginia walked off the job. This job action, Commonweal notes, initially occurred “without collective bargaining powers or the legal right to go on strike.” Yet it was “well-executed [and] wide-scale… Its size and scope proved critical.” With visible public sympathy and sufficient solidarity, the West Virginia teachers were successful. Credit goes to “a decentralized rank-and-file made up mostly of women,” Commonweal concludes.

The West Virginia example does not mean that the strike tactic is back. Nor that it is a sure-fire remedy to income inequality. Strikes are still rare in our country--maybe a dozen notable ones per year. Further, strikes are often broken with no immediate improvement for our country’s workers.

The full positive results of a strike and of the union movement itself might only materialize some years after the event. That’s a conclusion to draw from A History of America in Ten Strikes by Erik Loomis (The New Press, 2018).

The book’s first chapter centers on the “mill girls” of the early 19^th century. A New England economy based entirely on farms and craft shops gave way in 1793 when Samuel Slater (1768-1835) opened a textile mill in Pawtucket, RI. Francis Cabot Lowell (1775-1817) thereafter opened another mill along the Charles River in Boston. His company expanded after his death, including a mill along the Merrimack River in a town renamed for Lowell. That town was nicknamed Spindle City because by the mid-1800s its 40 textile mills and 10,000 looms, operating six days a week, produced about 100million yards of cloth per year. 

            Instead of using child labor these mills recruited young women from area farms and elsewhere. The young workers, who were capable of operating somewhat complicated machines, lived in boarding houses and were encouraged to read and to attend cultural events. For some young women at the time, it was considered a great adventure to assert independence from their families. However, workdays were routinely 13 hours. The definition of young woman was really teenager. The workers paid for their company housing and their employer increased rent when the company wanted more discipline.

In 1834 and again in 1836 the town’s mills cut wages. In both cases a strike spread to several mills, but was crushed within a week. In 1845 the young women added a strategy: Documenting health and safety concerns and then testifying in favor of a state-mandated 10-hour workday. Only nearby New Hampshire legislated 10 hours, but its mills ignored the law with impunity.

Think about the struggle of these young workers come February 2019 when your donut shop hands you some change. You might see a quarter honoring Lowell National Historical Park (www.nps.gov/lowe). On the quarter is a woman toiling at a cotton loom and a clock tower in the background. Modernity requires increased public awareness of hours and minutes. Thus one town after another installed mechanical clock towers. The Boott Mill clock tower of 1835, as depicted on the new coin, symbolizes New England’s transition from a village economy to an industrial economy—for better and for worse.

Loomis anchors another chapter of Ten Strikes with autoworkers in Flint during December 1936-January 1937. As with the West Virginia teachers, these autoworkers were two steps ahead of their union leaders. Most strikes, of course, occur outdoors. They include picket lines, protest signs, maybe lawn chairs and maybe a huge inflatable rat. But the strike in Flint was different. The workers sat to conquer. That is, they stayed inside; commandeering in a sense all of General Motors’ expensive equipment. Again as in West Virginia, the women from town played the crucial role. With coordination they brought food and newspapers into the plant; they rallied citizen support, not only in Flint but in other locales.

The AFL at this time, Loomis explains, was focused on craft workers across lines of employers. The door was thus open for the United Mine Workers, the United Auto Workers and the CIO to organize all the workers of a single employer and then all the workers in a specified industry. The champion of this type of organizing was John L. Lewis (1880-1969), and he was a major factor in the Flint job action.

Loomis drives home one of his main themes in this chapter. There are three major players in the national economy: big business, organized families/workers and government. Workers cannot make headway, Loomis argues, without some support from government. In the Flint example, the workers’ ally was Governor Frank Murphy (1890-1949), who was later appointed to the Supreme Court. At a tense moment, Murphy sent the National Guard to the General Motors plant. But not—as was expected—to evict the workers. Murphy had the National Guard protect the workers. General Motors was soon ushered to the bargaining table where they gave recognition to Lewis and the United Auto Workers.

Ten Strikes is a good introduction to U.S. labor history. Loomis, however, trips on his rhetoric once or twice. Workers today must take back “our dignity from our employer,” he wrongly writes.

No employer can give a worker dignity. A job promotion does not confer dignity. An employee of the month award is not about dignity. Paternalism is incapable of adding to dignity. Likewise, no employer can take away an employee’s dignity. Harassment, for example, is a sin, but it does not diminish the essence of a person. No one loses an ounce of dignity if his or her hours are cut. Dignity is innate; it is God-given. This is important to believe. This is a truth about power. Each person—middle manager, owner, janitor, skilled engineer, clerk, receptionist and more—possesses as a gift from birth the power of one’s own dignity. It can’t be given away; it can’t be taken away. Don’t ever think that it can.

Droel edits INITIATIVES (PO Box 291102, Chicago, IL 60629), a print newsletter on faith and work.