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Myth Boxes
Business Versus Labor
A commonly held myth about business and labor interest groups depicts them as natural enemies when it comes to making policy. They do, in fact, take opposite sides on such issues as federal regulation of minimum hourly wages. But on some other issues, such as the establishment of tariffs to control the importation of foreign goods, labor and business interests frequently coincide. A classic case of a labor-business alliance occurred when the Chrysler Corporation came close to bankruptcy in 1977 and sought a federally guaranteed loan. One of its strongest allies was the United Auto Workers (UAW) union. The loan not only rescued the economically troubled company but also secured the jobs held by UAW members at the Chrysler automobile plants.
Interestingly, business groups, which are often perceived as unified on most issues (another myth), were divided on the question of the guaranteed loan. A number of conservative groups opposed the loan, fearing that it might result in increased federal regulation of a major corporation. Many businesses object in principle to such regulation.
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