Hiltzik

It has long become clear that those of us who saw a glimmer of hope in President Trump’s appointment of Lori Chavez-DeRemer as secretary of Labor got snowed.

It wasn’t just, or even chiefly, the miasma of sleaze and corruption that seemed to surround her wherever she went. Or her slavish sucking up to Trump in public, notably at a Cabinet meeting in which she pleaded with Trump to send his immigration goons into Portland, Ore., to “crack down.” (“Thank you for what you’re doing with your agents on ICE,” she said at the August 2025 session.) Fun fact: She had represented a Portland suburb as a Republican for a single House term.

No. It was the gulf between the expectations, even among Democrats, that she might be a decent pick for the job, and the reality.

After all, she had been one of only three Republicans in the House to vote in favor of the so-called PRO Act, which would significantly strengthen collective bargaining rights. (The measure passed the House in 2019 and 2021 but hasn’t gotten out of committee in the current Congress.)

As I reported after her nomination, labor activists and pro-labor politicians made encouraging noises about her. Among them was Sen. Elizabeth Warren (D-Mass.): “It’s a big deal that one of the few Republican lawmakers who have endorsed the PRO Act could lead the Department of Labor,” Warren said. “If Chavez-DeRemer commits as Labor secretary to strengthen labor unions and promote worker power, she’s a strong candidate for the job.”

She received an explicit endorsement from Randi Weingarten, president of the American Federation of Teachers. “Her record suggests real support of workers & their right to unionize,” Weingarten tweeted. “I hope it means the Trump admin will actually respect collective bargaining and workers’ voices from Teamsters to teachers.”

The betting was that Chavez-DeRemer would be, at the very least, an upgrade from Trump’s previous appointee as Labor secretary during his first term. That was Eugene Scalia, son of the late Supreme Court justice, who had been a lawyer for big corporations fighting unions and resisting workplace regulations.

The most commonly expressed doubt about Chavez-DeRemer was whether she would have the fortitude to maintain a pro-labor stance in the face of the open hostility to workers displayed by Trump and the rest of his administration.

Within months, the answer was clear, and it was no. In May, she ceased enforcing a Biden administration rule that had discouraged businesses from designating their workers as independent contractors, depriving those workers of the legal protections and wage and hour benefits they would have received as employees.

The budget she submitted to Congress last year would slash her agency’s discretionary funding by more than 35%, to $8.6 billion from $13.2 billion, and cut its workforce by nearly 4,000 full-time workers, or more than 26%. In July she announced a plan to rescind 63 regulations that had been designed to help workers.

With language that sounded cribbed from the MAGA playbook, she said her goal is to “eliminate unnecessary regulations that stifle growth and limit opportunity.” Most of the regulations facing the guillotine related to worker health and safety protections.

Brief as it was, Chavez-DeRemer’s tenure wasn’t the first time that the Department of Labor was ill-served by its management. Republican presidents have displayed a decades-long tendency to fill the top spot with political cronies or pro-business activists masquerading as worker advocates, or worse.

Frances Perkins, Franklin Roosevelt’s Labor secretary, recalled having to clean up the agency — not just morally and ethically, but with broom and bucket, when she took over from William Nuckles Doak, Herbert Hoover’s appointee.

The Labor Department was located in a converted apartment building, its interior dark and foreboding, its shadowy corners occupied by silent, hulking men whom Perkins mentally labeled “cigar in the corner of the mouth types. Stale ashtrays and spittoons were everywhere, along with wastebaskets surrounded by mounds of misaimed and crumpled papers. (Its current Washington quarters are in the Frances Perkins Building.)

Doak didn’t seem inclined to leave the premises. Perkins got rid of him by sending him to lunch and packing up his personal effects while he was out.

Perkins’ first step as secretary was to disband an anti-immigrant squad that shook down foreign-born laborers for cash and helped employers harass labor organizers. She set a high standard for the agency, pushing forward legislation establishing the 40-hour workweek and the National Labor Relations Board — and also creating Social Security.

Many of Perkins’ Democratic successors have watched sadly as their efforts have been undone with a change in administrations. Robert Reich, who served under Bill Clinton (and is now an emeritus professor of public policy at UC Berkeley and an assiduous blogger), wrote Tuesday of having loved the agency’s mission: “to protect and raise the standard of living of working Americans.”

With Reich at Labor, the Clinton administration raised the federal minimum wage in 1997 from $3.35 an hour, where it had been stuck since 1980, to $5.15 (albeit still a cheeseparing $10.69 in today’s buying power). “We fought against sweatshops,” Reich recalled. “We took on big corporations that were cheating their employees. We kept workers safe.”

That the agency has been “treated like crap is an insult to generations of hardworking DOL employees, to American workers, to America,” Reich wrote.

Under Trump, the Department of Labor has become just another pro-business front pretending to advocate for workers. Genuine labor advocates are infuriated by its decline, which has proceeded under Republican and Democratic administrations alike.

The budget for its all-important wage and hour division, which enforces laws governing the minimum wage, overtime and prohibitions on child labor, has shrunk by 26% over a decade, according to David Weil, who headed the division under Obama and whose appointment by Biden to head the division was derailed by opposition from Big Business.

“There were 1,050 investigators working for the agency when I had the honor to lead it in the Obama administration,” Weil, who is a professor of social policy and management at Brandeis University, wrote last year. “It has barely over one-half that number now. The agency had 63 times more investigators per workplace in 1939 than in 2024.”

Trump poses as a pro-worker force, but his policies are atrocious for the laboring class. His Labor Department “walked away from a rule that expanded overtime protections to millions of workers,” Weil observed.

“While Congress’s ‘big beautiful bill’ boasts its worker-friendly removal of taxes on overtime, that provision benefits only a small slice of workers and revoking the overtime regulation further reduces the number of workers eligible for overtime protections when working long hours,” he wrote. “Or take the administration’s attack on low-paid workers whose employers hold federal contracts, by rescinding a $15 minimum wage for contractors covered by a Biden-era executive order, which benefited construction workers, purportedly a key Trump constituency.”

The Labor Department plays a role not only in regulating current workplace conditions but looking ahead at the “long-term prospects of our labor markets,” Weil told me Tuesday. “For example, the discussion of ‘affordability’ is rooted not only in rapidly rising price levels but also the low level of long-term earnings growth. Equally, our beliefs about the future prospects of employment and opportunity for college-educated workers are being upended by the potential impacts of AI.”

He added, “Questions like these require that the Labor Department be led by serious and knowledgeable individuals who place the interests of workers as their focus. So far, this administration has shown contempt for this mission,” as is shown by the decline and fall of Chavez-DeRemer.

Sometimes, the departure of an underperforming executive or official presages improvements ahead. That hasn’t been the pattern under Trump, and sadly, it’s not likely to happen at Labor.

Governing, the political sages tell us, is all about making choices, particularly when leadership faces finite resources and the choices are between war and peace; this is the “guns or butter” balancing raised by Lyndon Johnson’s pursuit of the Vietnam War and, appropriately, by President Trump’s Iran war.

Thus far, according to budget experts and the Trump administration itself, the war has cost Americans about $25 billion, with the White House reportedly preparing to seek $200 billion more in military funding. That points to the obvious question of what the U.S. could buy if it stopped spending on the Iran adventure.

Here’s the short answer: Medicaid coverage, free school lunches, and housing, child care and community college assistance for tens of millions of Americans. Those estimates come from Bobby Kogan, senior director for federal budget policy at the liberal Center for American Progress.

Kogan is not alone in doing the math. Similar estimates have been published by the Century Foundation and Mother Jones.

Democrats in Congress have offered their own juxtapositions: “$11.3 billion would have fully funded the training of 100,000 new nurses to solve our staffing crisis,” Rep. Diana DeGette (D-Colo.) observed on social media. “Instead, it was spent in just six days on an illegal war with no endgame.” (She wrote when that was the government’s estimate on spending in only the first week of the Iran war.)

Details will follow. But first, a reminder that the “peace dividend” — that is, the surge of available resources for socially beneficial spending after the cessation of hostilities — has always been an elusive concept.

In part that’s because it invariably gets tied up in conflicts over precisely what peacetime programs political leaders wish to fund, and that often involves tougher decisions than whether to mount a bombing campaign against a perceived adversary.

“What happened to the peace dividend?” economist Augusto Lopez-Claros asked last year, referring to the supposed surfeit of funds that was to flow after the end of the Cold War. His answer was that there were always alternatives, many of them militaristic in nature, in the wings to suck up the funds that had been spent in the past.

The issue has especially acute significance today, not merely because of the Iran war. The Trump administration and Republicans in Congress have been campaigning to cut federal spending, almost entirely on social programs such as Medicaid and on Social Security and Medicare benefits, ostensibly because they contribute heavily to our “unaffordable” federal budget deficits.

Never mind that the largest single contributor to the deficit is the massive tax cut enacted by Republicans in 2017, during the first Trump term, which were made permanent by the GOP’s budget bill last year.

Placing military spending in the context of alternatives is typically shunned by Republicans and conservatives. The Wall Street Journal editorial board derided the exercise as “dorm room politics,” referring specifically to an estimate by Rep. Ro Khanna (D-Fremont) that the $200 billion reportedly sought by the White House “would pay for free college for every American,” and more.

That doesn’t mean the exercise isn’t worthwhile, however. Kogan acknowledges that it wouldn’t be up to the Pentagon to redirect its budget to the social programs that could be funded with its funding request, but his point in making the comparisons is “to get a sense of scale.”

So let’s dive in, starting with Kogan’s work. He matched the cost of several social services against the $25 billion estimated to be spent on the war through the end of this week and the $200-billion new request. He also broke down some of the spending by ordnance. The price of one Tomahawk missile, invoiced about $3.5 million each, could cover Medicaid for a year for 275 people, for example; the U.S. has fired an estimated 300 of them in the Iran war so far, for more than $1 billion.

Kogan calculated that more than 3.1 million people could be covered by Medicaid for $25 billion, and 24.8 million could be covered for $200 billion. He based this estimate on the Congressional Budget Office’s finding that the federal share of Medicaid came last year to $668 billion to cover about 82 million adult and child enrollees, or about $8,048 per person annually.

Then there’s free school lunches, which the government has pegged at up to $4.69 per day for about 30 million children receiving meals in school. If they all received free lunch, that would come to a little over $25 billion, based on a 180-day school year. (Only about two-thirds of those children receive free meals, with the rest receiving cut-price meals or paying full price.)

Child care isn’t typically a governmental responsibility (though it should be); Kogan uses an estimate from the nonprofit organization Child Care Aware that care cost Americans about $13,128 on average in 2024; inflating that to a 2026 figure yields an average of $14,048, meaning that 1.78 million households could be covered for about $25 billion, and about 14.2 million for $200 billion.

Tuition for a two-year path to an associate degree in community college, that portal to higher education for millions of Americans, will cost an average of $8,700 this year by Kogan’s reckoning, based on the College Board’s estimate of $8,300 for 2025. That means that about 2.87 million Americans could have their tuition fully covered for about $25 billion, and nearly 23 million students could be covered for $200 billion.

The progressive Century Foundation contributed estimates of how much in social program spending could be accommodated for $200 billion. Its roster includes the cancellation of all medical debt for the 100 million Americans shouldering about $194 billion in medical debt. The enhanced Affordable Care Act premium subsidies that expired this year could be continued for almost six years for about $200 billion, extrapolating from the 10-year, $350-billion estimate produced by the CBO. “Ensuring health coverage for all Americans,” the foundation noted, “could save an estimated 68,000 lives per year.”

The foundation also notes that $200 billion could ameliorate the draconian cuts in Medicaid imposed by the preposterously named One Big Beautiful Bill that the GOP enacted as a budget measure in July. The work requirement in that bill is estimated to reduce Medicaid spending by $326 billion over 10 years, according to the CBO, mostly by throwing enrollees out of the program. The work rules, which as I’ve reported do nothing to enhance employment, could be deferred for six years, preventing the loss of coverage for about 5.2 million Americans.

Mother Jones reported soberly that $200 billion would cover the wages of 2.8 million public school teachers, based on an average salary of $72,030, as reported by the National Education Assn.

The publication took a rather more fanciful approach for some calculations. It reported that $200 billion would pay for 2,666 sequels to the “Melania” documentary, based on the $75-million reported cost of its production and marketing by Amazon, its sponsor. And 500 more White House ballrooms, based on the latest projection of $400 million for just one.

Obviously all these calculations are somewhat chimerical. No one really believes that if Congress rejects the $200-billion ask, that money would be redeployed for any of these social programs, at least while the GOP remains in control of the government purse strings. The basic arithmetic itself is subject to cavils resulting from the murkiness of some of the cost calculations and projections.

But they’re not far wide off the mark in terms of orders of magnitude. Millions of dollars in social spending could be covered by billions of dollars in military spending, and much more productive investments could be made in the years and decades to come.

The lost “peace dividend” encompasses not just domestic needs, but also “the potentially catastrophic risks that we are taking on in the future because we are misallocating resources now,” Lopez-Claros observed — “spending massively on defense while leaving unattended climate change mitigation, pandemic preparedness, the shamefully high levels of malnourishment in the world, among others. We may well come to regret this and by then, unfortunately, it might be too late.”

Even before the first bombs fell on Iran, after all, the U.S. was shortchanging all those imperatives. “Just last July, Trump signed into law the biggest cuts to the social safety net in all U.S. history,” Kogan says, including “the biggest cuts to Medicaid ever, and the biggest cuts to SNAP, ever.” (The GOP budget bill cut SNAP, the food stamp program, by $186 billion, leaving “nearly 3 million young adults ages 18 to 24 who receive SNAP vulnerable to losing that assistance,” the Urban Institute estimated after the bill was signed.

At their heart, these calculations are not really about dollars and cents. The financial figures just help us keep score of the choices that define us as a nation.