1937 Redux?

In 1937 a fragile economic recovery was wiped out by a collapse as deep or deeper than that experienced in 1933.  Economists tell us that the major driver of this disaster was the implementation of the Wagner Act - a piece of legislation that until amended by Taft-Hartley, gave unions carte blanc to 'organize' American industry.  Unions rapidly moved in on major employers, violence spiked, destroying investor confidence and provoking a renewed capital strike.  Within a few months Wall Street had collapsed and unemployment was back up to almost 20% - at a time when American resurgence and assertiveness might have averted world war.

Fast forward to today where the NLRB is mandating that Boeing shutter a fully built $1.2 Billion manufacturing facility because they believe the work should go to Seattle UAW members.  From the WSJ.

"Deep into the recent recession, Boeing decided to invest more than $1 billion in a new factory in South Carolina. Surging global demand for our innovative, new 787 Dreamliner exceeded what we could build on one production line and we needed to open another.

This was good news for Boeing and for the economy. The new jetliner assembly plant would be the first one built in the U.S. in 40 years. It would create new American jobs at a time when most employers are hunkered down. It would expand the domestic footprint of the nation's leading exporter and make it more competitive against emerging plane makers from China, Russia and elsewhere. And it would bring hope to a state burdened by double-digit unemployment—with the construction phase alone estimated to create more than 9,000 total jobs.

Eighteen months later, a North Charleston swamp has been transformed into a state-of-the-art, green-energy powered, 1.2 million square-foot airplane assembly plant. One thousand new workers are hired and being trained to start building planes in July. It is an American industrial success story by every measure.

Yet the National Labor Relations Board (NLRB) believes it was a mistake and that our actions were unlawful. It claims we improperly transferred existing work, and that our decision reflected "animus" and constituted "retaliation" against union-represented employees in Washington state. Its remedy: Reverse course, Boeing, and build the assembly line where we tell you to build it.

The NLRB is wrong and has far overreached its authority. Its action is a fundamental assault on the capitalist principles that have sustained America's competitiveness since it became the world's largest economy nearly 140 years ago. We've made a rational, legal business decision about the allocation of our capital and the placement of new work within the U.S. We're confident the federal courts will reject the claim, but only after a significant and unnecessary expense to taxpayers."

When elected, Barack Obama famously handed out hagiographies of FDR to his incoming staff.  They clearly have learned from the 'master's' playbook.

Note to employers:  don't have anything to do with the UAW...or Seattle.