Those who have paid the price for all this corporate largess are, of course, the public employees and the working-class people who depend on public services. The federal government cut 285,124 jobs between 1990 and 2010, 173,466 or 60 percent from the US Postal Service, which also faces the threat of privatization. This hit workers of color, who compose over half the mail sorting and processing staff, the hardest. From 2009 through late 2015, state governments lost 68,000 jobs, while local governments cut 418,000. 22 Particularly hard hit were teachers, as states cut school aid to cities, which on average accounts for about 46 percent of local school budgets. While between 2008 and 2015 the number of students rose by 804,000, the number of teachers fell by 297,000—with women accounting for the majority of these workers. 23 Up to 2009, state and local employment provided over half the country’s union members, but by 2015 they had fallen behind private-sector members. From 2009 through 2015, the number of local government union members dropped by 684,000. This was, of course, a consequence of the political attack on these workers and their unions that accelerated after the 2010 elections.

Emboldened by their successes in state antilabor legislation, Republicans in state after state have proposed “right-to-work” laws, which passed in three traditional strongholds of industrial unionism: Indiana, Michigan, and Wisconsin. 25 Through this intervention at the state level, capital acting through right-wing Republican politicians, sometimes with support from Democrats, has in effect further altered national labor policy in a pro-business direction. To many people, state governments appear at best as the training ground and launching pad for career politicians with higher ambitions or as seats of petty claims and corruption with little relevance to major policy formation in comparison to the federal government. As it turns out, corporate America had a more nuanced understanding of the altered role of the states in the US political system, and increasingly the states have become major levers of neoliberal governmental restructuring and corporate power.