The Wagner Act, the New Deal, and Why Unions Went Wrong

Discover the law that legalized unions, empowered organized crime, and still burdens America’s economy today.

Are you wondering why union membership has collapsed in the private sector while government unions remain entrenched? The answer traces back to the Wagner Act of 1935—a cornerstone of FDR’s New Deal that forever altered the relationship between workers, employers, and the government. In this video, legal expert Clifford Ribner explains how the Act empowered unions, invited corruption, and undermined constitutional principles that protect free markets.

What Makes This Video Essential Viewing

Watch this 15-minute breakdown to understand:

• The Wagner Act’s Real Impact: How a law passed in 1935 made unions not just legal but nearly compulsory in many workplaces

• Common Law vs. Collectivism: Why unions inherently violate the principle of tortious interference with contracts

• The Mob Connection: How organized crime stepped in after Prohibition and used unions as their enforcement arm

• The New Deal’s False Promise: Treasury Secretary Henry Morgenthau’s 1939 admission that the New Deal “has been a complete waste of money”

• FDR’s Warning: Why even Roosevelt, who signed the Wagner Act, opposed public-sector unions

• The Long-Term Damage: How these policies still weigh down businesses and employees nearly a century later

Why This History Still Matters

Unlike voluntary agreements in a free market, the Wagner Act enshrined coercion into labor relations. Once a union was certified, workers had little say in removing it—even if it no longer served their interests. Employers faced mob intimidation and government pressure, while individual employees lost the freedom to negotiate their own terms.

Today, private-sector union membership has fallen to around 6%, while public-sector unions dominate, funded by taxpayer dollars. This imbalance exists because of the framework set in motion by the Wagner Act.

Historical Context You Need to Know

• Henry Morgenthau’s 1939 Warning: FDR’s own Treasury Secretary admitted the New Deal had failed economically, despite unprecedented spending.

• Organized Crime’s Role: With Prohibition ended, mob networks shifted into union muscle, enforcing strikes and punishing dissenters.

• FDR on Public Unions: In 1937, Roosevelt warned that collective bargaining “cannot be transplanted into the public service”—a warning ignored in later decades.

Questions This Video Answers

• Why did the Wagner Act make unions so powerful—and nearly compulsory—in 1935?

• How did organized crime take over union enforcement after Prohibition ended?

• Why did unionization become a source of corruption instead of worker empowerment?

• What parts of the New Deal continue to restrict economic growth today?

• How can repealing outdated New Deal legislation unleash America’s economy?

Who Should Watch This Video

✅ Business owners frustrated with labor regulation and red tape

✅ Workers curious about why union membership has declined so sharply

✅ Policy advocates seeking historical context for labor law reform

✅ Taxpayers concerned about public-sector union power

✅ Anyone who values free markets and constitutional liberty

The Bottom Line

Clifford Ribner doesn’t just recount history—he connects the dots between the Wagner Act, organized crime, the New Deal, and today’s economic stagnation. You’ll finish this video with a clear understanding of how a Depression-era law reshaped labor in ways that still hurt America—and why repealing it could restore freedom and prosperity.

Key Takeaways from This Must-Watch Analysis

By the end of this video, you’ll have concrete answers to:

• How the Wagner Act created the NLRB and made unions nearly unavoidable

• Why Morgenthau himself admitted the New Deal was a failure

• How FDR’s 1937 letter on public-sector unions remains relevant today

• What reforms could restore constitutional balance in labor law

This isn’t nostalgia—it’s a look at how policies from 90 years ago still control your workplace today.

👉 Watch now to discover how the Wagner Act poisoned labor relations—and what can be done to undo its damage.

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