David Prosser Gains 7,500 Votes After 'Human Error' In Waukesha County
Amanda Terkel
4/7/11
http://www.huffingtonpost.com/2011/04/07/david-prosser-wisconsin-supreme-court_n_846431.html
WASHINGTON -- In a dramatic turn of events on Thursday, the Waukesha County clerk announced that the vote total announced for Tuesday's Wisconsin Supreme Court race had been mistaken -- and that the corrected numbers changed the outcome of the entire election.
There were 3,456 missing votes for Democratic-backed challenger JoAnne Kloppenburg and 11,059 for incumbent GOP-backed Justice David Prosser. Kloppenburg has previously been beating Prosser by just 200 votes of the roughly 1.5 million cast statewide. The new total puts Prosser on a significant path to victory, about 7,500 votes ahead of Kloppenburg.
Waukesha County Clerk Kathy Nickolaus announced the news in a press conference at 5:30 p.m. local time, sounding nervous and, at times, on the verge of tears. She insisted that there was no foul play in the results and blamed the mess on her own "human error."
Nickolaus cited several reasons for the discrepancies between Tuesday night's unofficial vote totals and the new numbers. In the city of New Berlin, the total for one ward was recorded as 37 votes for Prosser, but it was actually 237, she said. In the town of Lisbon, a "typing error" resulted in both candidates losing votes. The most significant error, however, occurred in the city of Brookfield.
"The spreadsheet from Brookfield was imported into a database that was provided by the Government Accountability Board, but it inadvertently was not saved," Nickolaus said. "As a result, when I ran the report to show the aggregate numbers that were collected from all the municipalities, I assumed that the city of Brookfield was included. It was not. The city of Brookfield cast 14,315 votes on April 5 -- 10,859 votes went for Justice David Prosser, 3,456 went for JoAnne Kloppenburg."
"It is important to stress that this is not a case of extra votes or extra ballots being found," she added. "This is human error, which I apologize for -- which is common in this process."
The existence of the missing votes was first reported at National Review Online by Christian Schneider, a senior fellow at the Wisconsin Policy Research Institute.
Questions were immediately raised about the new announcement. As Schneider wrote, prior to the election, Nickolaus "was heavily criticized for her decision to keep the county results on an antiquated personal computer, rather than upgrade to a new data system being utilized statewide."
Added Schneider: "Nickolaus cited security concerns for keeping the data herself -- yet when she reported the data, it did not include the City of Brookfield, whose residents cast nearly 14,000 votes."
The Waukesha County Board also heavily criticized the clerk after she brushed aside their recommendations for improving election security. At one point during a hearing in January, board chairman Jim Dwyer grew exasperated with Nickolaus and said, "There really is nothing funny about this, Kathy. Don't sit there and grin when I'm explaining what this is about."
"Wisconsin deserves elections that are fair, clean and transparent," said Scot Ross, the executive director of the progressive advocacy group One Wisconsin Now. "There is a history of secrecy and partisanship surrounding the Waukesha County Clerk and there remain unanswered questions."
Neither the campaigns nor the Democratic and Republican parties in the state were immediately available for comment. An official recount may be sought as early as next week.
Prosser announced Thursday that he was assembling an all-star legal team for the recount, including Washington, D.C.-based attorney Ben Ginsberg, who was part of then-Gov. George W. Bush's 2000 recount team and former Sen. Norm Coleman's counsel in Minnesota in 2008. Ginsberg declined to comment to The Huffington Post.
With the corrected errors, the turnout in Waukesha County increased from 42 percent to 47 percent. The new county totals are 92,263 votes for Prosser and 32,758 votes for Kloppenburg.
Showing posts with label Wisconsin. Show all posts
Showing posts with label Wisconsin. Show all posts
Sunday, April 24, 2011
Tuesday, March 29, 2011
Fuck Jon Stewart!
From FireDogLake.com:
Now, let’s discuss how we can be less nice to each other.
Less polite.
Less CIVIL.
I spent last Thursday with the Wisconsin Assembly debate on the Screw the Workers We Don’t Need ‘Em Anyway Act on in the background while I worked, and as I listened to speeches by Republicans and Democrats I was struck by something.
These people were angry. They were hurt. They were unapologetic. They said things like “lies” and “hate” and “wrong” and “unjust.” They said these things loudly. They said them to the people they were saying them about. They made no apologies. They didn’t pretend to be friendly. They didn’t smile and nod and easily give way to the gentle lady from East This and That. They raged.
It was GLORIOUS...
We can’t make decisions about who best represents American values if everybody’s busy pretending they all really want the same things in the end. We can’t make choices about who we want to lead us if our candidates value being nice over being honest. And we can’t understand the consequences of politics when we act like politics is inconsequential.
These people, these Republicans in Wisconsin, hell these Republicans nationally, really are willing to tell the whole world to go to hell so that they can keep cutting taxes for the wealthy. Schoolteachers, firefighters, cops, ironworkers, steamfitters, farmers, they can all die early and poor, lest David Koch’s stock drop a quarter of a point. That deserves to be met not with bemused and polite opposition, but blistering outrage and sincere and vociferous contempt.
People are cynical about politics because they take their cues from the behavior of their leaders, and their leaders, who make their living in politics, appear determined to convince us all that politics is a dirty word. Politics isn’t something you should care about. Politics isn’t something you should raise your voice for. Politics is a big ironic joke, and really, it’s no big deal either way, so don’t get upset. Politics isn’t CIVIL.
Well, maybe it shouldn’t be. What happens as a result of political decisions isn’t civil. People starve in poverty. People die of preventable disease. People’s children are educated in schools with holes in the roof and chains the doors. Two unwinnable wars, scores of people dead, secret prisons, torture, indefinite detention, warrantless eavesdropping … because those things were done by men and women wearing suits and ties doesn’t make them any more rarefied than some protester yelling something mean.
When all the great pundits of our time get together and talk about how civility has vanished from American public life, they mean somebody like me said fuck on the Internet. They mean somebody at a MoveOn rally had a Hitler sign. They mean, hell, that somebody at a Tea Party rally had a Hitler sign. They’re all focused on what those of us out here are doing and saying, and not at all focused on what people in power are doing and saying.
I for one don’t deplore the combative tone of the Wisconsin State Legislature. I love it. Looking back at the past decade, looking back at the past four decades, I’m not sure our country can take much more civility.
Late Night: A Plea for Less Civility in Politics
Allison Hantschel
Monday March 14, 2011
http://firedoglake.com/2011/03/14/late-night-a-plea-for-less-civility-in-politics/
Now, let’s discuss how we can be less nice to each other.
Less polite.
Less CIVIL.
I spent last Thursday with the Wisconsin Assembly debate on the Screw the Workers We Don’t Need ‘Em Anyway Act on in the background while I worked, and as I listened to speeches by Republicans and Democrats I was struck by something.
These people were angry. They were hurt. They were unapologetic. They said things like “lies” and “hate” and “wrong” and “unjust.” They said these things loudly. They said them to the people they were saying them about. They made no apologies. They didn’t pretend to be friendly. They didn’t smile and nod and easily give way to the gentle lady from East This and That. They raged.
It was GLORIOUS...
We can’t make decisions about who best represents American values if everybody’s busy pretending they all really want the same things in the end. We can’t make choices about who we want to lead us if our candidates value being nice over being honest. And we can’t understand the consequences of politics when we act like politics is inconsequential.
These people, these Republicans in Wisconsin, hell these Republicans nationally, really are willing to tell the whole world to go to hell so that they can keep cutting taxes for the wealthy. Schoolteachers, firefighters, cops, ironworkers, steamfitters, farmers, they can all die early and poor, lest David Koch’s stock drop a quarter of a point. That deserves to be met not with bemused and polite opposition, but blistering outrage and sincere and vociferous contempt.
People are cynical about politics because they take their cues from the behavior of their leaders, and their leaders, who make their living in politics, appear determined to convince us all that politics is a dirty word. Politics isn’t something you should care about. Politics isn’t something you should raise your voice for. Politics is a big ironic joke, and really, it’s no big deal either way, so don’t get upset. Politics isn’t CIVIL.
Well, maybe it shouldn’t be. What happens as a result of political decisions isn’t civil. People starve in poverty. People die of preventable disease. People’s children are educated in schools with holes in the roof and chains the doors. Two unwinnable wars, scores of people dead, secret prisons, torture, indefinite detention, warrantless eavesdropping … because those things were done by men and women wearing suits and ties doesn’t make them any more rarefied than some protester yelling something mean.
When all the great pundits of our time get together and talk about how civility has vanished from American public life, they mean somebody like me said fuck on the Internet. They mean somebody at a MoveOn rally had a Hitler sign. They mean, hell, that somebody at a Tea Party rally had a Hitler sign. They’re all focused on what those of us out here are doing and saying, and not at all focused on what people in power are doing and saying.
I for one don’t deplore the combative tone of the Wisconsin State Legislature. I love it. Looking back at the past decade, looking back at the past four decades, I’m not sure our country can take much more civility.
Late Night: A Plea for Less Civility in Politics
Allison Hantschel
Monday March 14, 2011
http://firedoglake.com/2011/03/14/late-night-a-plea-for-less-civility-in-politics/
Wisconsin protesters target bank that supported Governor Walker
Muriel Kane Friday, March 11th, 2011
http://www.rawstory.com/rs/2011/03/11/wisconsin-protesters-target-bank-that-supported-governor-walker/
As the protesting spirit spreads in Wisconsin, one tactic that union members are now adopting is to take aim at institutions that have donated heavily to Governor Scott Walker.
Members of the Wisconsin firefighter's union set out for a local branch of the M & I Bank on Thursday to withdraw their personal savings. The UpTake, which describes itself as "a citizen-fueled, online video news gathering organization," reports that "on Thursday members of the union withdrew close to $200,000 from the bank."
A website titled "Keep on eye on Marshall & Ilsley Bank" had been targeting the M & I Bank since last month. "After working families gave Marshall and Ilsley Bank (M&I) a $1.7 billion bailout in 2008," the site explains, "their executives did an about face and funded Governor Scott Walker's attack on our right to collectively bargain. In fact, their financial help combined was more than what the Koch Brothers contributed. And while Governor Walker was demanding austerity from working people, M&I CEO Mark Furlong got an $18 million golden parachute. Even after the bank was having diffulty paying back its TARP loan."
According to Susie Madrak at Crooks and Liars, the run on the bank began when teachers, firefighters, and police offers threatened to start a boycott on March 17 if the bank did not publicly oppose Walker's attack on collective bargaining rights. But after the governor pushed the cancellation of collective bargaining through the state legislation, it inspired so many protesters to show up on Thursday that the branch shut down "under the advisement of the Madison Police Department."
A diary at Daily Kos, headed "We're Going To Destroy A Bank," described the action in more personal terms. "M &I Bank of Wisconsin has committed an unpardonable offense," diarist Stranded Wind wrote. "This bank took bailout funds and thanks to the magic of Citizens United our own tax dollars flowed through their executives hands into the coffers of Scott Walker's gubernatorial campaign. We haven't dug deeply yet, but I think when we do we're going to find that we no longer have Russ Feingold's voice in the Senate because of this as well."
"What these pictures show are six hundred ordinary citizens descending on the M&I branch near the Wisconsin Capitol after learning of their purchase of the gubernatorial election last November," the diary continues. "If the 60% of Wisconsin that's sick to death of Scott Walker's behavior simply go close their accounts the bank will crash and they'll have stripped him of the funds he needs to fight the recall next January."
The bank has continued to insist that "M&I has not contributed to any candidate and did not contribute to Governor Walker or Mayor Barrett in the last gubernatorial election. M&I has over 6,000 employees in Wisconsin, and, in the great tradition of political freedom in this country, those employees have the right to contribute to the candidate of their choice."
http://www.rawstory.com/rs/2011/03/11/wisconsin-protesters-target-bank-that-supported-governor-walker/
As the protesting spirit spreads in Wisconsin, one tactic that union members are now adopting is to take aim at institutions that have donated heavily to Governor Scott Walker.
Members of the Wisconsin firefighter's union set out for a local branch of the M & I Bank on Thursday to withdraw their personal savings. The UpTake, which describes itself as "a citizen-fueled, online video news gathering organization," reports that "on Thursday members of the union withdrew close to $200,000 from the bank."
A website titled "Keep on eye on Marshall & Ilsley Bank" had been targeting the M & I Bank since last month. "After working families gave Marshall and Ilsley Bank (M&I) a $1.7 billion bailout in 2008," the site explains, "their executives did an about face and funded Governor Scott Walker's attack on our right to collectively bargain. In fact, their financial help combined was more than what the Koch Brothers contributed. And while Governor Walker was demanding austerity from working people, M&I CEO Mark Furlong got an $18 million golden parachute. Even after the bank was having diffulty paying back its TARP loan."
According to Susie Madrak at Crooks and Liars, the run on the bank began when teachers, firefighters, and police offers threatened to start a boycott on March 17 if the bank did not publicly oppose Walker's attack on collective bargaining rights. But after the governor pushed the cancellation of collective bargaining through the state legislation, it inspired so many protesters to show up on Thursday that the branch shut down "under the advisement of the Madison Police Department."
A diary at Daily Kos, headed "We're Going To Destroy A Bank," described the action in more personal terms. "M &I Bank of Wisconsin has committed an unpardonable offense," diarist Stranded Wind wrote. "This bank took bailout funds and thanks to the magic of Citizens United our own tax dollars flowed through their executives hands into the coffers of Scott Walker's gubernatorial campaign. We haven't dug deeply yet, but I think when we do we're going to find that we no longer have Russ Feingold's voice in the Senate because of this as well."
"What these pictures show are six hundred ordinary citizens descending on the M&I branch near the Wisconsin Capitol after learning of their purchase of the gubernatorial election last November," the diary continues. "If the 60% of Wisconsin that's sick to death of Scott Walker's behavior simply go close their accounts the bank will crash and they'll have stripped him of the funds he needs to fight the recall next January."
The bank has continued to insist that "M&I has not contributed to any candidate and did not contribute to Governor Walker or Mayor Barrett in the last gubernatorial election. M&I has over 6,000 employees in Wisconsin, and, in the great tradition of political freedom in this country, those employees have the right to contribute to the candidate of their choice."
Monday, March 14, 2011
How Wisconsin Could Turn Austerity into Prosperity: Own a Bank
Ellen Brown
Published on Monday, March 7, 2011 by YES! Magazine
http://www.commondreams.org/view/2011/03/07-9
Public sector worker sitting in a bar: “They’re trying to take away our pensions.”
Private sector worker: “What’s a pension?”
— Cartoon in the Houston Chronicle
As states struggle to meet their budgets, public pensions are on the chopping block, but they needn’t be. States can keep their pension funds intact while leveraging them into many times their worth in loans, just as Wall Street banks do. They can do this by forming their own public banks, following the lead of North Dakota—a state that currently has a budget surplus.
Wisconsin Governor Scott Walker, whose recently proposed bill to gut benefits, wages, and bargaining rights for unionized public workers inspired weeks of protests in Madison, has justified the move as necessary for balancing the state's budget. But is it?
After three weeks of demonstrations in Wisconsin, protesters report no plans to back down. Fourteen Wisconsin Democratic lawmakers—who left the state so that a quorum to vote on the bill could not be reached—said Friday that they are not deterred by threats of possible arrest and of 1,500 layoffs if they don't return to work. President Obama has charged Wisconsin’s Governor Scott Walker with attempting to bust the unions. But Walker’s defense is:
“We're broke. Like nearly every state across the country, we don't have any more money."
Broke Unless You Count the $67 Billion Pension Fund . . .
Wisconsin's pension program could save another $195 million annually just by cutting out its Wall Street investment managers and managing the funds in-house.That’s what he says, but according to Wisconsin’s 2010 CAFR (Comprehensive Annual Financial Report) [pdf], the state has $67 billion in pension and other employee benefit trust funds, invested mainly in stocks and debt securities drawing a modest return.
A recent study by the Pew Center for the States showed that Wisconsin’s pension fund is almost fully funded, meaning it can meet its commitments for years to come without drawing on outside sources. It requires a contribution of only $645 million annually to meet pension payouts. Zach Carter, writing in the Huffington Post, notes that the pension program could save another $195 million annually just by cutting out its Wall Street investment managers and managing the funds in-house.
The governor is evidently eying the state’s pension fund, not because the state cannot afford the pension program, but because he sees it as a potential source of revenue for programs that are not fully funded. This tactic, however, is not going down well with state employees.
Fortunately, there is another alternative. Wisconsin could draw down the fund by the small amount needed to meet pension obligations, and put the bulk of the remaining money to work creating jobs, helping local businesses, and increasing tax revenues for the state. It could do this by forming its own bank, following the lead of North Dakota, the only state to have its own bank—and the only state to escape the credit crisis.
This could be done without spending the pension fund money or lending it. The funds would just be shifted from one form of investment to another (equity in a bank). When a bank makes a loan, neither the bank’s own capital nor its customers’ demand deposits are actually lent to borrowers. As observed on the Dallas Federal Reserve’s website, “Banks actually create money when they lend it.” They simply extend accounting-entry bank credit, which is extinguished when the loan is repaid. Creating this sort of credit-money is a privilege available only to banks—but states can tap into that privilege by owning a bank.
How North Dakota Escaped the Credit Crunch
The state-owned Bank of North Dakota (BND) has allowed North Dakota to maintain its economic sovereignty, a conservative states-rights ideal. The BND was established in 1919 in response to a wave of farm foreclosures by out-of-state Wall Street banks. Today, the state not only has no debt, but it recently boasted its largest-ever budget surplus. The BND helps to fund not only local government but local businesses and local banks, by partnering with the banks to provide the funds to support small business lending.
The BND is also a boon to the state treasury, having contributed over $300 million to state coffers in the past decade, a notable achievement for a state with a population less than one-tenth the size of Los Angeles County. In 2008, the BND returned a 26 percent dividend to the state. In comparison, California’s public pension funds are down more than $100 billion—that’s billion with a “b”—or close to half the funds’ holdings, following the Wall Street debacle of 2008. It was, in fact, the 2008 bank collapse rather than overpaid public employees that caused the crisis that shrank state revenues and prompted the budget cuts in the first place.
Seven States Are Now Considering Setting Up Public Banks
Faced with federal inaction and growing local budget crises, an increasing number of states are exploring the possibility of setting up their own state-owned banks, following the North Dakota model. On January 11, 2011, a bill to establish a state-owned bank was introduced in the Oregon State legislature; on January 13, a similar bill was introduced in Washington State; on January 20, a bill for a state bank was filed in Massachusetts (following a 2010 bill that had lapsed); and on February 4, a bill was introduced in the Maryland legislature for a feasibility study looking into the possibilities. They join Illinois, Virginia, and Hawaii, which introduced similar bills in 2010, bringing the total number of states with such bills to seven.
If Governor Walker wanted to explore this possibility for his state, he could drop in on the Center for State Innovation (CSI), which is located down the street in his capital city of Madison, Wisconsin. The CSI has done detailed cost/benefit analyses of the Oregon and Washington state bank initiatives, which show substantial projected benefits based on the BND precedent. See reports here and here.
For Washington State, with an economy not much larger than Wisconsin’s, the CSI report estimates that after an initial start-up period, establishing a state-owned bank would create new or retained jobs of between 7,400 and 10,700 a year at small businesses alone, while at the same time returning a profit to the state.
A Bank of Wisconsin Could Generate “Bank Credit” Many Times the Size of the Budget Deficit
Economists looking at the CSI reports have called their conclusions conservative. The CSI made its projections without relying on state pension funds for bank capital, although it acknowledged that this could be a potential source of capitalization.
If the Bank of Wisconsin were to use state pension funds, it could have a capitalization of more than $57 billion—nearly as large as that of Goldman Sachs. At an 8 percent capital requirement, $8 in capital can support $100 in loans, or a potential lending capacity of over $500 billion. The bank would need deposits to clear the checks, but the credit-generating potential could still be huge.
With a state bank, Wisconsin might be able to amass over $24 billion in deposits and generate an equivalent sum in loans—over six times the deficit complained of by the state’s governor.Banks can create all the bank credit they want, limited only by (a) the availability of creditworthy borrowers, (b) the lending limits imposed by bank capital requirements, and (c) the availability of “liquidity” to clear outgoing checks. Liquidity can be acquired either from the deposits of the bank’s own customers or by borrowing from other banks or the money market. If borrowed, the cost of funds is a factor; but at today’s very low Fed funds rate of 0.2 percent, that cost is minimal. Again, however, only banks can tap into these very low rates. States are reduced to borrowing at about 5 percent—unless they own their own banks, or, better yet, unless they are banks. The BND is set up as “North Dakota doing business as the Bank of North Dakota.”
That means that technically, all of North Dakota’s assets are the assets of the bank. The BND also has its deposit needs covered. It has a massive deposit base, since all of the state’s revenues are deposited in the bank by law. The bank also takes other deposits, but the bulk of its deposits are government funds. The BND is careful not to compete with local banks for consumer deposits, which account for less than 2 percent of the total. The BND reports that it has deposits of $2.7 billion and outstanding loans of $2.6 billion. With a population of 647,000, that works out to about $4,000 per capita in deposits, backing roughly the same amount in loans.
Wisconsin has a population that is nine times the size of North Dakota’s. Other factors being equal, Wisconsin might be able to amass over $24 billion in deposits and generate an equivalent sum in loans—over six times the deficit complained of by the state’s governor. That lending capacity could be used for many purposes, depending on the will of the legislature and state law. Possibilities include (a) partnering with local banks, as in the North Dakota model, strengthening their capital bases to allow credit to flow to small businesses and homeowners, where it is sorely needed today; (b) funding infrastructure virtually interest-free (since the state would own the bank and would get back any interest paid out); and (c) refinancing state deficits nearly interest-free.
Why Give Wisconsin’s Enormous Credit-generating Power Away?
The budget woes of Wisconsin and other states were caused not by overspending on employee benefits, but by a credit crisis on Wall Street. The “cure” is to get credit flowing again in the local economy, and this can be done by using state assets to capitalize state-owned banks.
Against the modest cost of establishing a publicly owned bank, state legislators need to weigh the much greater costs of the alternatives—slashing essential public services, laying off workers, raising taxes on constituents who are already over-taxed, and selling off public assets. Given the cost of continuing business as usual, states can hardly afford not to consider the public bank option. When state and local governments invest their capital in out-of-state money center banks and deposit their revenues there, they are giving their enormous credit-generating power away to Wall Street.
Ellen Brown is a frequent contributor to YES! Magazine. She is an attorney and the author of eleven books, including Web of Debt: The Shocking Truth About Our Money System and How We Can Break Free. Her websites are webofdebt.com and ellenbrown.com.
Published on Monday, March 7, 2011 by YES! Magazine
http://www.commondreams.org/view/2011/03/07-9
Public sector worker sitting in a bar: “They’re trying to take away our pensions.”
Private sector worker: “What’s a pension?”
— Cartoon in the Houston Chronicle
As states struggle to meet their budgets, public pensions are on the chopping block, but they needn’t be. States can keep their pension funds intact while leveraging them into many times their worth in loans, just as Wall Street banks do. They can do this by forming their own public banks, following the lead of North Dakota—a state that currently has a budget surplus.
Wisconsin Governor Scott Walker, whose recently proposed bill to gut benefits, wages, and bargaining rights for unionized public workers inspired weeks of protests in Madison, has justified the move as necessary for balancing the state's budget. But is it?
After three weeks of demonstrations in Wisconsin, protesters report no plans to back down. Fourteen Wisconsin Democratic lawmakers—who left the state so that a quorum to vote on the bill could not be reached—said Friday that they are not deterred by threats of possible arrest and of 1,500 layoffs if they don't return to work. President Obama has charged Wisconsin’s Governor Scott Walker with attempting to bust the unions. But Walker’s defense is:
“We're broke. Like nearly every state across the country, we don't have any more money."
Broke Unless You Count the $67 Billion Pension Fund . . .
Wisconsin's pension program could save another $195 million annually just by cutting out its Wall Street investment managers and managing the funds in-house.That’s what he says, but according to Wisconsin’s 2010 CAFR (Comprehensive Annual Financial Report) [pdf], the state has $67 billion in pension and other employee benefit trust funds, invested mainly in stocks and debt securities drawing a modest return.
A recent study by the Pew Center for the States showed that Wisconsin’s pension fund is almost fully funded, meaning it can meet its commitments for years to come without drawing on outside sources. It requires a contribution of only $645 million annually to meet pension payouts. Zach Carter, writing in the Huffington Post, notes that the pension program could save another $195 million annually just by cutting out its Wall Street investment managers and managing the funds in-house.
The governor is evidently eying the state’s pension fund, not because the state cannot afford the pension program, but because he sees it as a potential source of revenue for programs that are not fully funded. This tactic, however, is not going down well with state employees.
Fortunately, there is another alternative. Wisconsin could draw down the fund by the small amount needed to meet pension obligations, and put the bulk of the remaining money to work creating jobs, helping local businesses, and increasing tax revenues for the state. It could do this by forming its own bank, following the lead of North Dakota, the only state to have its own bank—and the only state to escape the credit crisis.
This could be done without spending the pension fund money or lending it. The funds would just be shifted from one form of investment to another (equity in a bank). When a bank makes a loan, neither the bank’s own capital nor its customers’ demand deposits are actually lent to borrowers. As observed on the Dallas Federal Reserve’s website, “Banks actually create money when they lend it.” They simply extend accounting-entry bank credit, which is extinguished when the loan is repaid. Creating this sort of credit-money is a privilege available only to banks—but states can tap into that privilege by owning a bank.
How North Dakota Escaped the Credit Crunch
The state-owned Bank of North Dakota (BND) has allowed North Dakota to maintain its economic sovereignty, a conservative states-rights ideal. The BND was established in 1919 in response to a wave of farm foreclosures by out-of-state Wall Street banks. Today, the state not only has no debt, but it recently boasted its largest-ever budget surplus. The BND helps to fund not only local government but local businesses and local banks, by partnering with the banks to provide the funds to support small business lending.
The BND is also a boon to the state treasury, having contributed over $300 million to state coffers in the past decade, a notable achievement for a state with a population less than one-tenth the size of Los Angeles County. In 2008, the BND returned a 26 percent dividend to the state. In comparison, California’s public pension funds are down more than $100 billion—that’s billion with a “b”—or close to half the funds’ holdings, following the Wall Street debacle of 2008. It was, in fact, the 2008 bank collapse rather than overpaid public employees that caused the crisis that shrank state revenues and prompted the budget cuts in the first place.
Seven States Are Now Considering Setting Up Public Banks
Faced with federal inaction and growing local budget crises, an increasing number of states are exploring the possibility of setting up their own state-owned banks, following the North Dakota model. On January 11, 2011, a bill to establish a state-owned bank was introduced in the Oregon State legislature; on January 13, a similar bill was introduced in Washington State; on January 20, a bill for a state bank was filed in Massachusetts (following a 2010 bill that had lapsed); and on February 4, a bill was introduced in the Maryland legislature for a feasibility study looking into the possibilities. They join Illinois, Virginia, and Hawaii, which introduced similar bills in 2010, bringing the total number of states with such bills to seven.
If Governor Walker wanted to explore this possibility for his state, he could drop in on the Center for State Innovation (CSI), which is located down the street in his capital city of Madison, Wisconsin. The CSI has done detailed cost/benefit analyses of the Oregon and Washington state bank initiatives, which show substantial projected benefits based on the BND precedent. See reports here and here.
For Washington State, with an economy not much larger than Wisconsin’s, the CSI report estimates that after an initial start-up period, establishing a state-owned bank would create new or retained jobs of between 7,400 and 10,700 a year at small businesses alone, while at the same time returning a profit to the state.
A Bank of Wisconsin Could Generate “Bank Credit” Many Times the Size of the Budget Deficit
Economists looking at the CSI reports have called their conclusions conservative. The CSI made its projections without relying on state pension funds for bank capital, although it acknowledged that this could be a potential source of capitalization.
If the Bank of Wisconsin were to use state pension funds, it could have a capitalization of more than $57 billion—nearly as large as that of Goldman Sachs. At an 8 percent capital requirement, $8 in capital can support $100 in loans, or a potential lending capacity of over $500 billion. The bank would need deposits to clear the checks, but the credit-generating potential could still be huge.
With a state bank, Wisconsin might be able to amass over $24 billion in deposits and generate an equivalent sum in loans—over six times the deficit complained of by the state’s governor.Banks can create all the bank credit they want, limited only by (a) the availability of creditworthy borrowers, (b) the lending limits imposed by bank capital requirements, and (c) the availability of “liquidity” to clear outgoing checks. Liquidity can be acquired either from the deposits of the bank’s own customers or by borrowing from other banks or the money market. If borrowed, the cost of funds is a factor; but at today’s very low Fed funds rate of 0.2 percent, that cost is minimal. Again, however, only banks can tap into these very low rates. States are reduced to borrowing at about 5 percent—unless they own their own banks, or, better yet, unless they are banks. The BND is set up as “North Dakota doing business as the Bank of North Dakota.”
That means that technically, all of North Dakota’s assets are the assets of the bank. The BND also has its deposit needs covered. It has a massive deposit base, since all of the state’s revenues are deposited in the bank by law. The bank also takes other deposits, but the bulk of its deposits are government funds. The BND is careful not to compete with local banks for consumer deposits, which account for less than 2 percent of the total. The BND reports that it has deposits of $2.7 billion and outstanding loans of $2.6 billion. With a population of 647,000, that works out to about $4,000 per capita in deposits, backing roughly the same amount in loans.
Wisconsin has a population that is nine times the size of North Dakota’s. Other factors being equal, Wisconsin might be able to amass over $24 billion in deposits and generate an equivalent sum in loans—over six times the deficit complained of by the state’s governor. That lending capacity could be used for many purposes, depending on the will of the legislature and state law. Possibilities include (a) partnering with local banks, as in the North Dakota model, strengthening their capital bases to allow credit to flow to small businesses and homeowners, where it is sorely needed today; (b) funding infrastructure virtually interest-free (since the state would own the bank and would get back any interest paid out); and (c) refinancing state deficits nearly interest-free.
Why Give Wisconsin’s Enormous Credit-generating Power Away?
The budget woes of Wisconsin and other states were caused not by overspending on employee benefits, but by a credit crisis on Wall Street. The “cure” is to get credit flowing again in the local economy, and this can be done by using state assets to capitalize state-owned banks.
Against the modest cost of establishing a publicly owned bank, state legislators need to weigh the much greater costs of the alternatives—slashing essential public services, laying off workers, raising taxes on constituents who are already over-taxed, and selling off public assets. Given the cost of continuing business as usual, states can hardly afford not to consider the public bank option. When state and local governments invest their capital in out-of-state money center banks and deposit their revenues there, they are giving their enormous credit-generating power away to Wall Street.
Ellen Brown is a frequent contributor to YES! Magazine. She is an attorney and the author of eleven books, including Web of Debt: The Shocking Truth About Our Money System and How We Can Break Free. Her websites are webofdebt.com and ellenbrown.com.
Saturday, March 12, 2011
Wisconsin: The End of Obama-ism
Wed, 03/02/2011
A Black Agenda Radio commentary by Glen Ford
http://blackagendareport.com/content/wisconsin-end-obama-ism
The struggle in Wisconsin, and those to come, must shape a politics that is independent of the uniparty, the Democratic section of which is headed by Barack Obama. Significantly, “students and other protesters don’t want Obama to intervene in the fight with Gov. Walker because of the president’s cuts in Pell Grants and a whole range of social supports.” It becomes clearer by the day that “Obama-ism, rather than providing the new Democratic dispensation that delusional progressives and masses of Blacks imagined, is a straight-line path to defeat.”
“A direct action movement will be the people’s only defense in a post-2012 environment.”
Herr Gov. Scott Walker, of Wisconsin, has let the other jack-boot drop with proposals for an additional $1.6 billion in cuts to schools and local governments, an assault designed to drive the most basic public services either out of existence or towards privatization through strangulation. The mostly white-bread state now stares at the prospect of 60-student classrooms, like the nonfunctional regime that is to be imposed on children in Detroit under a Democratic state administration. Democratic governors in New York, California and elsewhere are no doubt reveling in the carnage wrought by their GOP brethren in America’s uniparty system, whose depredations expand the political space for their own jihads against the public sector and its unions.
Wisconsin is, in a sense, near-ideal terrain for a showdown with the Tea Party brand of Republicanism. The actors in the drama are overwhelmingly white, putting the raw class nature of capital’s aggressions in stark relief. With relatively few Black scapegoats to complicate the issue, white folks must confront the bare facts of the way late-stage capitalism tramples ordinary people as it careens from crisis to crisis.
Or, maybe not. White supremacy is a dynamic ideology that has always been central to the domestic functions of American Exceptionalism, distorting not just race relations but all other social relations, as well. Once the foundational Nigger has been invented and given life in the public mind, with all his purported logic-bending and society-polluting defects, his characteristics can be imputed to other targeted groups – a ready-made demonization kit. Public employees in general and teachers in particular now find themselves Niggerized as lazy featherbedders, no-count malingerers, fellow travelers with welfare queens and other human malignancies that must be excised so that the free market can work its wonders.
“With relatively few Black scapegoats to complicate the issue, white folks must confront the bare facts of the way late-stage capitalism tramples ordinary people as it careens from crisis to crisis.”
If the white masses can convince themselves that they don’t deserve to be Niggerized – and that neither do Black and brown folks – then they may eventually summon the clarity of mind to defeat the two-percent minority that is systematically dismantling the public sphere. This would be something new under the American sun.
The advent of a genuinely new phenomenon, a Black U.S. president, has served to objectively strengthen the hand of raging capital by neutralizing the Black half of progressive America and obscuring the face of Wall Street’s offensive, in which Barack Obama is a key player. Left activist Ben Manski, of Wisconsin Wave, says students and other protesters don’t want Obama to intervene in the fight with Gov. Walker and the GOP legislature because of the president’s cuts in Pell Grants and a whole range of social supports. Their instincts are good. There is every reason to believe that, if Obama where to go beyond the bromides he dispensed to governors at the White House, this week, he would tell Wisconsin’s Democratic senators, huddled in Chicago to avoid giving Republicans a quorum: “I know that you guys have been enjoying my fair city, but it’s time to go home and sit down and work things out across party lines. We must overcome partisan politics.” In an instant, the solid Democratic front would collapse, and the GOP would get its quorum.
Obama has undermined public school teachers as Republican George Bush never could, elevating charterization of the nation’s public schools to national policy under a Democratic administration. As education writer Richard D. Kahlenberg pointed out in the Washington Post, last week, Obama “applauded the firing of every single unionized teacher at Central Falls High School in Rhode Island.” He embraced Washington, DC’s former schools superintendent Michelle Rhee, a darling of privatizers in both wings of the American uniparty, and hosted the anti-public education propaganda film “Waiting for Superman” at the White House.
“Win or lose, the battle in Wisconsin and other looming confrontations with the triumphalist Right must produce a politics that is not tethered to Democratic Party structures.”
We await the First Black President’s next capitulation to Republicans on Capital Hill – an inevitability, since he has accepted the basic premises of Wall Street rule: that budget deficits are the greatest threat to economic well-being; tax cuts to corporations are necessary for economic recovery and growth; public workers wages and rights must be curtailed (he unilaterally froze their pay for two years); and war spending, except at the margins, is inviolable.
In principle, there is no difference between corporate Democrat Obama and corporate Republicans – it is only a matter of degree. And the degrees of separation grow fewer by the day.
The GOP is all but certain to win the U.S. Senate in 2012, sealing its hold on the legislative branch. We will either have a Republican in the White House or another dreadful term of Barack Obama, who will by that time have helped move the bar even farther to the Right, where his comfort zone lies. That’s why, win or lose, the battle in Wisconsin and other looming confrontations with the triumphalist Right must produce a politics that is not tethered to Democratic Party structures.
Obama-ism, rather than providing the new Democratic dispensation that delusional progressives and masses of Blacks imagined, is a straight-line path to defeat. The uniparty system is a corporate trap, and reliance on the ballot box, where money rules as never before, cannot possibly galvanize a direct action movement that will be the people’s only defense in a post-2012 environment.
It is a time to fashion new weapons, and bring back old ones.
The good news is, financial capitalism is dying. The bad news is, it wants to bring us all down with it – and is, so far, succeeding.
BAR executive editor Glen Ford can be contacted at Glen.Ford@BlackAgendaReport.com
A Black Agenda Radio commentary by Glen Ford
http://blackagendareport.com/content/wisconsin-end-obama-ism
The struggle in Wisconsin, and those to come, must shape a politics that is independent of the uniparty, the Democratic section of which is headed by Barack Obama. Significantly, “students and other protesters don’t want Obama to intervene in the fight with Gov. Walker because of the president’s cuts in Pell Grants and a whole range of social supports.” It becomes clearer by the day that “Obama-ism, rather than providing the new Democratic dispensation that delusional progressives and masses of Blacks imagined, is a straight-line path to defeat.”
“A direct action movement will be the people’s only defense in a post-2012 environment.”
Herr Gov. Scott Walker, of Wisconsin, has let the other jack-boot drop with proposals for an additional $1.6 billion in cuts to schools and local governments, an assault designed to drive the most basic public services either out of existence or towards privatization through strangulation. The mostly white-bread state now stares at the prospect of 60-student classrooms, like the nonfunctional regime that is to be imposed on children in Detroit under a Democratic state administration. Democratic governors in New York, California and elsewhere are no doubt reveling in the carnage wrought by their GOP brethren in America’s uniparty system, whose depredations expand the political space for their own jihads against the public sector and its unions.
Wisconsin is, in a sense, near-ideal terrain for a showdown with the Tea Party brand of Republicanism. The actors in the drama are overwhelmingly white, putting the raw class nature of capital’s aggressions in stark relief. With relatively few Black scapegoats to complicate the issue, white folks must confront the bare facts of the way late-stage capitalism tramples ordinary people as it careens from crisis to crisis.
Or, maybe not. White supremacy is a dynamic ideology that has always been central to the domestic functions of American Exceptionalism, distorting not just race relations but all other social relations, as well. Once the foundational Nigger has been invented and given life in the public mind, with all his purported logic-bending and society-polluting defects, his characteristics can be imputed to other targeted groups – a ready-made demonization kit. Public employees in general and teachers in particular now find themselves Niggerized as lazy featherbedders, no-count malingerers, fellow travelers with welfare queens and other human malignancies that must be excised so that the free market can work its wonders.
“With relatively few Black scapegoats to complicate the issue, white folks must confront the bare facts of the way late-stage capitalism tramples ordinary people as it careens from crisis to crisis.”
If the white masses can convince themselves that they don’t deserve to be Niggerized – and that neither do Black and brown folks – then they may eventually summon the clarity of mind to defeat the two-percent minority that is systematically dismantling the public sphere. This would be something new under the American sun.
The advent of a genuinely new phenomenon, a Black U.S. president, has served to objectively strengthen the hand of raging capital by neutralizing the Black half of progressive America and obscuring the face of Wall Street’s offensive, in which Barack Obama is a key player. Left activist Ben Manski, of Wisconsin Wave, says students and other protesters don’t want Obama to intervene in the fight with Gov. Walker and the GOP legislature because of the president’s cuts in Pell Grants and a whole range of social supports. Their instincts are good. There is every reason to believe that, if Obama where to go beyond the bromides he dispensed to governors at the White House, this week, he would tell Wisconsin’s Democratic senators, huddled in Chicago to avoid giving Republicans a quorum: “I know that you guys have been enjoying my fair city, but it’s time to go home and sit down and work things out across party lines. We must overcome partisan politics.” In an instant, the solid Democratic front would collapse, and the GOP would get its quorum.
Obama has undermined public school teachers as Republican George Bush never could, elevating charterization of the nation’s public schools to national policy under a Democratic administration. As education writer Richard D. Kahlenberg pointed out in the Washington Post, last week, Obama “applauded the firing of every single unionized teacher at Central Falls High School in Rhode Island.” He embraced Washington, DC’s former schools superintendent Michelle Rhee, a darling of privatizers in both wings of the American uniparty, and hosted the anti-public education propaganda film “Waiting for Superman” at the White House.
“Win or lose, the battle in Wisconsin and other looming confrontations with the triumphalist Right must produce a politics that is not tethered to Democratic Party structures.”
We await the First Black President’s next capitulation to Republicans on Capital Hill – an inevitability, since he has accepted the basic premises of Wall Street rule: that budget deficits are the greatest threat to economic well-being; tax cuts to corporations are necessary for economic recovery and growth; public workers wages and rights must be curtailed (he unilaterally froze their pay for two years); and war spending, except at the margins, is inviolable.
In principle, there is no difference between corporate Democrat Obama and corporate Republicans – it is only a matter of degree. And the degrees of separation grow fewer by the day.
The GOP is all but certain to win the U.S. Senate in 2012, sealing its hold on the legislative branch. We will either have a Republican in the White House or another dreadful term of Barack Obama, who will by that time have helped move the bar even farther to the Right, where his comfort zone lies. That’s why, win or lose, the battle in Wisconsin and other looming confrontations with the triumphalist Right must produce a politics that is not tethered to Democratic Party structures.
Obama-ism, rather than providing the new Democratic dispensation that delusional progressives and masses of Blacks imagined, is a straight-line path to defeat. The uniparty system is a corporate trap, and reliance on the ballot box, where money rules as never before, cannot possibly galvanize a direct action movement that will be the people’s only defense in a post-2012 environment.
It is a time to fashion new weapons, and bring back old ones.
The good news is, financial capitalism is dying. The bad news is, it wants to bring us all down with it – and is, so far, succeeding.
BAR executive editor Glen Ford can be contacted at Glen.Ford@BlackAgendaReport.com
How I Got to Madison, Wisconsin...
A letter from Michael Moore
Sunday, March 6th, 2011
Friends,
Early yesterday morning, around 1:00 AM, I had finished work for the day on my current "project" (top secret for now -- sorry, no spoiler alerts!). Someone had sent me a link to a discussion Bill O'Reilly had had with Sarah Palin a few hours earlier about my belief that the money the 21st Century rich have absconded with really isn't theirs -- and that a vast chunk of it should be taken away from them.
They were referring to comments I had made earlier in the week on a small cable show called GRITtv (Part 1 and Part 2). I honestly didn't know this was going to air that night (I had been asked to stop by and say a few words of support for a nurses union video), but I spoke from my heart about the millions of our fellow Americans who have had their homes and jobs stolen from them by a criminal class of millionaires and billionaires. It was the morning after the Oscars, at which the winner of Best Documentary for "Inside Job" stood at the microphone and declared, "I must start by pointing out that three years after our horrific financial crisis caused by financial fraud, not a single financial executive has gone to jail. And that's wrong." And he was applauded for saying this. (When did they stop booing Oscar speeches? Damn!)
So GRITtv ran my comments -- and all week the right wingopoly has been upset over what I said: That the money that the rich have stolen (or not paid taxes on) belongs to the American people. Drudge/Limbaugh/Beck and even Donald Trump went nuts, calling me names and suggesting I move to Cuba.
So in the wee hours of yesterday morning I sat down to write an answer to them. By 3:00 AM, it had turned into more of a manifesto of class war -- or, I should say, a manifesto against the class war the rich have been conducting on the American people for the past 30 years. I read it aloud to myself to see how it sounded (trying not to wake anyone else in the apartment) and then -- and this is why no one should be up at 3:00 AM -- the crazy kicked in: I needed to get in the car and drive to Madison and give this speech.
I went online to get directions and saw that there was no official big rally planned like the one they had last Saturday and will have again next Saturday. Just the normal ongoing demonstration and occupation of the State Capitol that's been in process since February 12th (the day after Mubarak was overthrown in Egypt) to protest the Republican governor's move to kill the state's public unions.
So, it's three in the morning and I'm a thousand miles from Madison and I see that the open microphone for speakers starts at noon. Hmm. No time to drive from New York. I was off to the airport. I left a note on the kitchen table saying I'd be back at 9:00 PM. Called a friend and asked him if he wanted to meet me at the Delta counter. Called the guy who manages my website, woke him up, and asked him to track down the coordinators in Madison and tell them I'm on my way and would like to say a few words if possible -- "but tell them if they've got other plans or no room for me, I'll be happy just to stand there holding a sign and singing Solidarity Forever."
So I just showed up. The firefighters, hearing I'm there, ask me to lead their protest parade through downtown Madison. I march with them, along with John Nichols (who lives in Madison and writes for the Nation). Congresswoman Tammy Baldwin and the great singer Michelle Shocked have also decided to show up.
The scene in Madison is nothing like what they are showing you on TV or in the newspaper. First, you notice that the whole town is behind this. Yard signs and signs in store windows are everywhere supporting public workers. There are thousands of people out just randomly lining the streets for the six blocks leading to the Capitol building carrying signs, shouting and cheering and cajoling. Then there are stages and friendly competing demos on all sides of the building (yesterday's total estimate of people was 50,000-70,000, the smallest one yet)! A big semi truck has been sent by James Hoffa of the Teamsters and is parked like a don't-even-think-of-effing-with-us Sherman tank on the street in front of the Capitol. There is a long line -- separate from these other demonstrations -- of 4,000 people, waiting their turn to get through the only open door to the Capitol so they can join the occupation inside.
And inside the Rotunda is ... well, it will bring tears to your eyes if you go there. It's like a shrine to working people -- to what America is and should be about -- packed with families and kids and so many senior citizens that it made me happy for science and its impact on life expectancy over the past century. There were grandmas and great-grandpas who remember FDR and Wisconsin's La Follette and the long view of this struggle. Standing in that Rotunda was like a religious experience. There had been nothing like it, for me, in decades.
And so it was in this setting, out of doors now on the steps of the Capitol, with so many people in front of me that I couldn't see where they ended, that I just "showed up" and gave a speech that felt unlike any other I had ever given. As I had just written it and had no time to memorize it, I read from the pages I brought with me. I wanted to make sure that the words I had chosen were clear and exact. I knew they had the potential to drive the haters into a rabid state (not a pretty sight) but I also feared that the Right's wealthy patrons would see a need to retaliate should these words be met with citizen action across the land. I was, after all, putting them on notice: We are coming after you, we are stopping you and we are going to return the money/jobs/homes you stole from the people. You have gone too far. It's too bad you couldn't have been satisfied with making millions, you had to have billions -- and now you want to strip us of our ability to talk and bargain and provide. This is your tipping point, Wall Street; your come-to-Jesus moment, Corporate America. And I'm glad I'm going to be able to be a witness to it.
You can find the written version of my speech on my website. Please read it and pass it around far and wide. You can also watch a video of me giving the spoken version from the Capitol steps by clicking here. I will be sending you a second email shortly with just the speech so you can forward a clean version of it without the above story of how I abandoned my family in the middle of the night to go to Wisconsin for the day.
I can't express enough the level of admiration I have for the people of Wisconsin who, for three weeks, have braved the brutal winter cold and taken over their state Capitol. All told, literally hundreds of thousands of people have made their way to Madison to make their voices heard. It all began with high school students cutting class and marching on the building (you can read their reports on my High School Newspaper site). Then their parents joined them. Then 14 brave Democratic state senators left the state so the governor wouldn't have his quorum.
And all this while the White House was trying to stop this movement (read this)!
But it didn't matter. The People's train had left the station. And now protests were springing up in all 50 states.
The media has done a poor job covering this (imagine a takeover of the government HQ in any other country, free or totalitarian -- our media would be all over it). But this one scares them and their masters -- as it should. The organizers told me this morning that my showing up got them more coverage yesterday than they would have had, "a shot in the arm that we needed to keep momentum going." Well, I'm glad I could help. But they need a lot more than just me -- and they need you doing similar things in your own states and towns.
How 'bout it? I know you know this: This is our moment. Let's seize it. Everyone can do something.
Yours,
Michael Moore
MMFlint@aol.com
MichaelMoore.com
P.S. This local Madison paper/blog captured best what happened yesterday, and got what I'm really up to. Someone please send this to O'Reilly and Palin so there's no mistaking my true intentions.
P.P.S. Full disclosure: I am a proud union member of four unions: the Directors Guild, the Writers Guild, the Screen Actors Guild and AFTRA (the last two have passed resolutions supporting the workers in Wisconsin). My production company has signed union contracts with five unions (and soon to be a 6th). All my full-time employees have full medical and dental insurance with NO DEDUCTIBLE. So, yes, I'm biased.
Sunday, March 6th, 2011
Friends,
Early yesterday morning, around 1:00 AM, I had finished work for the day on my current "project" (top secret for now -- sorry, no spoiler alerts!). Someone had sent me a link to a discussion Bill O'Reilly had had with Sarah Palin a few hours earlier about my belief that the money the 21st Century rich have absconded with really isn't theirs -- and that a vast chunk of it should be taken away from them.
They were referring to comments I had made earlier in the week on a small cable show called GRITtv (Part 1 and Part 2). I honestly didn't know this was going to air that night (I had been asked to stop by and say a few words of support for a nurses union video), but I spoke from my heart about the millions of our fellow Americans who have had their homes and jobs stolen from them by a criminal class of millionaires and billionaires. It was the morning after the Oscars, at which the winner of Best Documentary for "Inside Job" stood at the microphone and declared, "I must start by pointing out that three years after our horrific financial crisis caused by financial fraud, not a single financial executive has gone to jail. And that's wrong." And he was applauded for saying this. (When did they stop booing Oscar speeches? Damn!)
So GRITtv ran my comments -- and all week the right wingopoly has been upset over what I said: That the money that the rich have stolen (or not paid taxes on) belongs to the American people. Drudge/Limbaugh/Beck and even Donald Trump went nuts, calling me names and suggesting I move to Cuba.
So in the wee hours of yesterday morning I sat down to write an answer to them. By 3:00 AM, it had turned into more of a manifesto of class war -- or, I should say, a manifesto against the class war the rich have been conducting on the American people for the past 30 years. I read it aloud to myself to see how it sounded (trying not to wake anyone else in the apartment) and then -- and this is why no one should be up at 3:00 AM -- the crazy kicked in: I needed to get in the car and drive to Madison and give this speech.
I went online to get directions and saw that there was no official big rally planned like the one they had last Saturday and will have again next Saturday. Just the normal ongoing demonstration and occupation of the State Capitol that's been in process since February 12th (the day after Mubarak was overthrown in Egypt) to protest the Republican governor's move to kill the state's public unions.
So, it's three in the morning and I'm a thousand miles from Madison and I see that the open microphone for speakers starts at noon. Hmm. No time to drive from New York. I was off to the airport. I left a note on the kitchen table saying I'd be back at 9:00 PM. Called a friend and asked him if he wanted to meet me at the Delta counter. Called the guy who manages my website, woke him up, and asked him to track down the coordinators in Madison and tell them I'm on my way and would like to say a few words if possible -- "but tell them if they've got other plans or no room for me, I'll be happy just to stand there holding a sign and singing Solidarity Forever."
So I just showed up. The firefighters, hearing I'm there, ask me to lead their protest parade through downtown Madison. I march with them, along with John Nichols (who lives in Madison and writes for the Nation). Congresswoman Tammy Baldwin and the great singer Michelle Shocked have also decided to show up.
The scene in Madison is nothing like what they are showing you on TV or in the newspaper. First, you notice that the whole town is behind this. Yard signs and signs in store windows are everywhere supporting public workers. There are thousands of people out just randomly lining the streets for the six blocks leading to the Capitol building carrying signs, shouting and cheering and cajoling. Then there are stages and friendly competing demos on all sides of the building (yesterday's total estimate of people was 50,000-70,000, the smallest one yet)! A big semi truck has been sent by James Hoffa of the Teamsters and is parked like a don't-even-think-of-effing-with-us Sherman tank on the street in front of the Capitol. There is a long line -- separate from these other demonstrations -- of 4,000 people, waiting their turn to get through the only open door to the Capitol so they can join the occupation inside.
And inside the Rotunda is ... well, it will bring tears to your eyes if you go there. It's like a shrine to working people -- to what America is and should be about -- packed with families and kids and so many senior citizens that it made me happy for science and its impact on life expectancy over the past century. There were grandmas and great-grandpas who remember FDR and Wisconsin's La Follette and the long view of this struggle. Standing in that Rotunda was like a religious experience. There had been nothing like it, for me, in decades.
And so it was in this setting, out of doors now on the steps of the Capitol, with so many people in front of me that I couldn't see where they ended, that I just "showed up" and gave a speech that felt unlike any other I had ever given. As I had just written it and had no time to memorize it, I read from the pages I brought with me. I wanted to make sure that the words I had chosen were clear and exact. I knew they had the potential to drive the haters into a rabid state (not a pretty sight) but I also feared that the Right's wealthy patrons would see a need to retaliate should these words be met with citizen action across the land. I was, after all, putting them on notice: We are coming after you, we are stopping you and we are going to return the money/jobs/homes you stole from the people. You have gone too far. It's too bad you couldn't have been satisfied with making millions, you had to have billions -- and now you want to strip us of our ability to talk and bargain and provide. This is your tipping point, Wall Street; your come-to-Jesus moment, Corporate America. And I'm glad I'm going to be able to be a witness to it.
You can find the written version of my speech on my website. Please read it and pass it around far and wide. You can also watch a video of me giving the spoken version from the Capitol steps by clicking here. I will be sending you a second email shortly with just the speech so you can forward a clean version of it without the above story of how I abandoned my family in the middle of the night to go to Wisconsin for the day.
I can't express enough the level of admiration I have for the people of Wisconsin who, for three weeks, have braved the brutal winter cold and taken over their state Capitol. All told, literally hundreds of thousands of people have made their way to Madison to make their voices heard. It all began with high school students cutting class and marching on the building (you can read their reports on my High School Newspaper site). Then their parents joined them. Then 14 brave Democratic state senators left the state so the governor wouldn't have his quorum.
And all this while the White House was trying to stop this movement (read this)!
But it didn't matter. The People's train had left the station. And now protests were springing up in all 50 states.
The media has done a poor job covering this (imagine a takeover of the government HQ in any other country, free or totalitarian -- our media would be all over it). But this one scares them and their masters -- as it should. The organizers told me this morning that my showing up got them more coverage yesterday than they would have had, "a shot in the arm that we needed to keep momentum going." Well, I'm glad I could help. But they need a lot more than just me -- and they need you doing similar things in your own states and towns.
How 'bout it? I know you know this: This is our moment. Let's seize it. Everyone can do something.
Yours,
Michael Moore
MMFlint@aol.com
MichaelMoore.com
P.S. This local Madison paper/blog captured best what happened yesterday, and got what I'm really up to. Someone please send this to O'Reilly and Palin so there's no mistaking my true intentions.
P.P.S. Full disclosure: I am a proud union member of four unions: the Directors Guild, the Writers Guild, the Screen Actors Guild and AFTRA (the last two have passed resolutions supporting the workers in Wisconsin). My production company has signed union contracts with five unions (and soon to be a 6th). All my full-time employees have full medical and dental insurance with NO DEDUCTIBLE. So, yes, I'm biased.
Tuesday, March 8, 2011
Shock Doctrine, U.S.A.
PAUL KRUGMAN
February 24, 2011
http://www.nytimes.com/2011/02/25/opinion/25krugman.html
Here’s a thought: maybe Madison, Wis., isn’t Cairo after all. Maybe it’s Baghdad — specifically, Baghdad in 2003, when the Bush administration put Iraq under the rule of officials chosen for loyalty and political reliability rather than experience and competence.
As many readers may recall, the results were spectacular — in a bad way. Instead of focusing on the urgent problems of a shattered economy and society, which would soon descend into a murderous civil war, those Bush appointees were obsessed with imposing a conservative ideological vision. Indeed, with looters still prowling the streets of Baghdad, L. Paul Bremer, the American viceroy, told a Washington Post reporter that one of his top priorities was to “corporatize and privatize state-owned enterprises” — Mr. Bremer’s words, not the reporter’s — and to “wean people from the idea the state supports everything.”
The story of the privatization-obsessed Coalition Provisional Authority was the centerpiece of Naomi Klein’s best-selling book “The Shock Doctrine,” which argued that it was part of a broader pattern. From Chile in the 1970s onward, she suggested, right-wing ideologues have exploited crises to push through an agenda that has nothing to do with resolving those crises, and everything to do with imposing their vision of a harsher, more unequal, less democratic society.
Which brings us to Wisconsin 2011, where the shock doctrine is on full display.
In recent weeks, Madison has been the scene of large demonstrations against the governor’s budget bill, which would deny collective-bargaining rights to public-sector workers. Gov. Scott Walker claims that he needs to pass his bill to deal with the state’s fiscal problems. But his attack on unions has nothing to do with the budget. In fact, those unions have already indicated their willingness to make substantial financial concessions — an offer the governor has rejected.
What’s happening in Wisconsin is, instead, a power grab — an attempt to exploit the fiscal crisis to destroy the last major counterweight to the political power of corporations and the wealthy. And the power grab goes beyond union-busting. The bill in question is 144 pages long, and there are some extraordinary things hidden deep inside.
For example, the bill includes language that would allow officials appointed by the governor to make sweeping cuts in health coverage for low-income families without having to go through the normal legislative process.
And then there’s this: “Notwithstanding ss. 13.48 (14) (am) and 16.705 (1), the department may sell any state-owned heating, cooling, and power plant or may contract with a private entity for the operation of any such plant, with or without solicitation of bids, for any amount that the department determines to be in the best interest of the state. Notwithstanding ss. 196.49 and 196.80, no approval or certification of the public service commission is necessary for a public utility to purchase, or contract for the operation of, such a plant, and any such purchase is considered to be in the public interest and to comply with the criteria for certification of a project under s. 196.49 (3) (b).”
What’s that about? The state of Wisconsin owns a number of plants supplying heating, cooling, and electricity to state-run facilities (like the University of Wisconsin). The language in the budget bill would, in effect, let the governor privatize any or all of these facilities at whim. Not only that, he could sell them, without taking bids, to anyone he chooses. And note that any such sale would, by definition, be “considered to be in the public interest.”
If this sounds to you like a perfect setup for cronyism and profiteering — remember those missing billions in Iraq? — you’re not alone. Indeed, there are enough suspicious minds out there that Koch Industries, owned by the billionaire brothers who are playing such a large role in Mr. Walker’s anti-union push, felt compelled to issue a denial that it’s interested in purchasing any of those power plants. Are you reassured?
The good news from Wisconsin is that the upsurge of public outrage — aided by the maneuvering of Democrats in the State Senate, who absented themselves to deny Republicans a quorum — has slowed the bum’s rush. If Mr. Walker’s plan was to push his bill through before anyone had a chance to realize his true goals, that plan has been foiled. And events in Wisconsin may have given pause to other Republican governors, who seem to be backing off similar moves.
But don’t expect either Mr. Walker or the rest of his party to change those goals. Union-busting and privatization remain G.O.P. priorities, and the party will continue its efforts to smuggle those priorities through in the name of balanced budgets.
A version of this op-ed appeared in print on February 25, 2011, on page A27 of the New York edition.
February 24, 2011
http://www.nytimes.com/2011/02/25/opinion/25krugman.html
Here’s a thought: maybe Madison, Wis., isn’t Cairo after all. Maybe it’s Baghdad — specifically, Baghdad in 2003, when the Bush administration put Iraq under the rule of officials chosen for loyalty and political reliability rather than experience and competence.
As many readers may recall, the results were spectacular — in a bad way. Instead of focusing on the urgent problems of a shattered economy and society, which would soon descend into a murderous civil war, those Bush appointees were obsessed with imposing a conservative ideological vision. Indeed, with looters still prowling the streets of Baghdad, L. Paul Bremer, the American viceroy, told a Washington Post reporter that one of his top priorities was to “corporatize and privatize state-owned enterprises” — Mr. Bremer’s words, not the reporter’s — and to “wean people from the idea the state supports everything.”
The story of the privatization-obsessed Coalition Provisional Authority was the centerpiece of Naomi Klein’s best-selling book “The Shock Doctrine,” which argued that it was part of a broader pattern. From Chile in the 1970s onward, she suggested, right-wing ideologues have exploited crises to push through an agenda that has nothing to do with resolving those crises, and everything to do with imposing their vision of a harsher, more unequal, less democratic society.
Which brings us to Wisconsin 2011, where the shock doctrine is on full display.
In recent weeks, Madison has been the scene of large demonstrations against the governor’s budget bill, which would deny collective-bargaining rights to public-sector workers. Gov. Scott Walker claims that he needs to pass his bill to deal with the state’s fiscal problems. But his attack on unions has nothing to do with the budget. In fact, those unions have already indicated their willingness to make substantial financial concessions — an offer the governor has rejected.
What’s happening in Wisconsin is, instead, a power grab — an attempt to exploit the fiscal crisis to destroy the last major counterweight to the political power of corporations and the wealthy. And the power grab goes beyond union-busting. The bill in question is 144 pages long, and there are some extraordinary things hidden deep inside.
For example, the bill includes language that would allow officials appointed by the governor to make sweeping cuts in health coverage for low-income families without having to go through the normal legislative process.
And then there’s this: “Notwithstanding ss. 13.48 (14) (am) and 16.705 (1), the department may sell any state-owned heating, cooling, and power plant or may contract with a private entity for the operation of any such plant, with or without solicitation of bids, for any amount that the department determines to be in the best interest of the state. Notwithstanding ss. 196.49 and 196.80, no approval or certification of the public service commission is necessary for a public utility to purchase, or contract for the operation of, such a plant, and any such purchase is considered to be in the public interest and to comply with the criteria for certification of a project under s. 196.49 (3) (b).”
What’s that about? The state of Wisconsin owns a number of plants supplying heating, cooling, and electricity to state-run facilities (like the University of Wisconsin). The language in the budget bill would, in effect, let the governor privatize any or all of these facilities at whim. Not only that, he could sell them, without taking bids, to anyone he chooses. And note that any such sale would, by definition, be “considered to be in the public interest.”
If this sounds to you like a perfect setup for cronyism and profiteering — remember those missing billions in Iraq? — you’re not alone. Indeed, there are enough suspicious minds out there that Koch Industries, owned by the billionaire brothers who are playing such a large role in Mr. Walker’s anti-union push, felt compelled to issue a denial that it’s interested in purchasing any of those power plants. Are you reassured?
The good news from Wisconsin is that the upsurge of public outrage — aided by the maneuvering of Democrats in the State Senate, who absented themselves to deny Republicans a quorum — has slowed the bum’s rush. If Mr. Walker’s plan was to push his bill through before anyone had a chance to realize his true goals, that plan has been foiled. And events in Wisconsin may have given pause to other Republican governors, who seem to be backing off similar moves.
But don’t expect either Mr. Walker or the rest of his party to change those goals. Union-busting and privatization remain G.O.P. priorities, and the party will continue its efforts to smuggle those priorities through in the name of balanced budgets.
A version of this op-ed appeared in print on February 25, 2011, on page A27 of the New York edition.
Wednesday, March 2, 2011
The Wisconsin Lie Exposed
The Wisconsin Lie Exposed – Taxpayers Actually Contribute Nothing To Public Employee Pensions
Feb. 25 2011
RICK UNGAR
http://blogs.forbes.com/rickungar/2011/02/25/the-wisconsin-lie-exposed-taxpayers-actually-contribute-nothing-to-public-employee-pensions
Pulitzer Prize winning tax reporter, David Cay Johnston, has written a brilliant piece for tax.com exposing the truth about who really pays for the pension and benefits for public employees in Wisconsin.
Gov. Scott Walker says he wants state workers covered by collective bargaining agreements to “contribute more” to their pension and health insurance plans. Accepting Gov. Walker’ s assertions as fact, and failing to check, creates the impression that somehow the workers are getting something extra, a gift from taxpayers. They are not. Out of every dollar that funds Wisconsin’ s pension and health insurance plans for state workers, 100 cents comes from the state workers.
Via tax.com
How can this be possible?
Simple. The pension plan is the direct result of deferred compensation- money that employees would have been paid as cash salary but choose, instead, to have placed in the state operated pension fund where the money can be professionally invested (at a lower cost of management) for the future.
Many of us are familiar with the concept of deferred compensation from reading about the latest multi-million dollar deal with some professional athlete. As a means of allowing their ball club to have enough money to operate, lowering their own tax obligations and for other benefits, ball players often defer payment of money they are to be paid to a later date. In the meantime, that money is invested for the ball player’s benefit and then paid over at the time and in the manner agreed to in the contract between the parties.
Does anyone believe that, in the case of the ball player, the deferred money belongs to the club owner rather than the ball player? Is the owner simply providing this money to the athlete as some sort of gift? Of course not. The money is salary to be paid to the ball player, deferred for receipt at a later date.
A review of the state’s collective bargaining agreements – many of which are available for review at the Wisconsin Office of State Employees web site - bears out that it is no different for state employees. The numbers are just lower.
Check out section 13 of the Wisconsin Association of State Prosecutors collective bargaining agreement – “For the duration of this Agreement, the Employer will contribute on behalf of the employee five percent (5%) of the employee’s earnings paid by the State. ”
Johnston goes on to point out that Governor Walker has gotten away with this false narrative because journalists have failed to look closely at how employee pension plans work and have simply accepted the Governor’s word for it. Because of this, those who wish the unions ill have been able to seize on that narrative to score points by running ads and spreading the word that state employees pay next to nothing for their pensions and that it is all a big taxpayer give-away.
If it is true that pension and benefit money is money that already belongs to state workers, you might ask why state employees would not just take the cash as direct compensation and do their own investing for their retirement through their own individual retirement plans.
Again, simple.
Mr. Johnston continues-
Expecting individuals to be experts at investing their retirement money in defined contribution plans — instead of pooling the money so professional investors can manage the money as is done in defined benefit plans — is not sound economics. The concept, at its most basic, is buying wholesale instead of retail. Wholesale is cheaper for the buyers. That is, it saves taxpayers money. The Wisconsin State Investment Board manages about $74.5 billion for an all-in cost of $224 million. That is a cost of about 30-cents per $100, which is good but not great. However it is far less than many defined contribution plans, where costs are often $1 or more per $100.”
If the Wisconsin governor and state legislature were to be honest, they would correctly frame this issue. They are not, in fact, asking state employees to make a larger contribution to their pension and benefits programs as that would not be possible- the employees are already paying 100% of the contributions.
What they are actually asking is that the employees take a pay cut.
That may or may not be an appropriate request depending on your point of view – but the argument that the taxpayers are providing state workers with some gift is as false as the argument that state workers are paid better than employees with comparable education and skills in private industry.
Maybe state workers need to take pay cut along with so many of their fellow Americans. But let’s, at the least, recognize this sacrifice for what it is rather than pretending they’ve been getting away with some sweet deal that now must be brought to an end.
UPDATE: Since this post was published earlier today, many commenters have made the point that, while it is true that it is state employees’ own money that funds the pension plan, when the pension plan comes up short it is up to the taxpayer to make up the difference.
There is some truth in this – but not as much as many seem to think. Because the pension plan is a defined benefit plan – requiring the state to pay the agreed benefit for however long the employee may live in retirement- if the employee lives longer than the actuarial plan anticipated, the taxpayer is on the hook for the pay-outs during the longer life.
But is this the fault of the state employees? The pension agreements are the result of collective bargaining. That means that the state has every opportunity to properly calculate the anticipated lifespan and then add on some margin for error. What’s more, the losses taken by the pension funds over the past few years can hardly be blamed on the employees.
Take a look at what Sue Urahn, an expert on the subject at the Pew Center on the States, has to say about this when describing the $1 trillion gap that existed between the $2.35 trillion states had set aside to pay for employees’ retirement benefits and the $3.35 trillion price tag of those promises.at the end of 2008-
To a significant degree, the $1 trillion reflects states’ own policy choices and lack of discipline:
•• failing to make annual payments for pension systems at the levels recommended by their own actuaries;
•• expanding benefits and offering cost-of-living increases without fully considering their long-term price tag or determining how to pay for them; and
•• providing retiree health care without adequately funding it
Via Pew Center on the States
That is the point. While the governor of Wisconsin is busy trying to shift the blame to the workers in an effort to put an end to collective bargaining, the reality is that it was the state who punted on this – not the employees.
Further, by the state employee unions agreeing to the deal proposed by Walker on their benefits (as they have despite Walker’s refusal to accept it) they are taking on much - and possibly all – of the obligation out of their own pockets.
As a result, the taxpayers do not contribute to the public employee pension programs so much as serve as insurers. If their elected officials have been sloppy , the taxpayers must stand behind it. But if the market continues to perform as it has been performing this past year, don’t be surprised if the funding crisis begins to recede. If it does, what will you say then?
Feb. 25 2011
RICK UNGAR
http://blogs.forbes.com/rickungar/2011/02/25/the-wisconsin-lie-exposed-taxpayers-actually-contribute-nothing-to-public-employee-pensions
Pulitzer Prize winning tax reporter, David Cay Johnston, has written a brilliant piece for tax.com exposing the truth about who really pays for the pension and benefits for public employees in Wisconsin.
Gov. Scott Walker says he wants state workers covered by collective bargaining agreements to “contribute more” to their pension and health insurance plans. Accepting Gov. Walker’ s assertions as fact, and failing to check, creates the impression that somehow the workers are getting something extra, a gift from taxpayers. They are not. Out of every dollar that funds Wisconsin’ s pension and health insurance plans for state workers, 100 cents comes from the state workers.
Via tax.com
How can this be possible?
Simple. The pension plan is the direct result of deferred compensation- money that employees would have been paid as cash salary but choose, instead, to have placed in the state operated pension fund where the money can be professionally invested (at a lower cost of management) for the future.
Many of us are familiar with the concept of deferred compensation from reading about the latest multi-million dollar deal with some professional athlete. As a means of allowing their ball club to have enough money to operate, lowering their own tax obligations and for other benefits, ball players often defer payment of money they are to be paid to a later date. In the meantime, that money is invested for the ball player’s benefit and then paid over at the time and in the manner agreed to in the contract between the parties.
Does anyone believe that, in the case of the ball player, the deferred money belongs to the club owner rather than the ball player? Is the owner simply providing this money to the athlete as some sort of gift? Of course not. The money is salary to be paid to the ball player, deferred for receipt at a later date.
A review of the state’s collective bargaining agreements – many of which are available for review at the Wisconsin Office of State Employees web site - bears out that it is no different for state employees. The numbers are just lower.
Check out section 13 of the Wisconsin Association of State Prosecutors collective bargaining agreement – “For the duration of this Agreement, the Employer will contribute on behalf of the employee five percent (5%) of the employee’s earnings paid by the State. ”
Johnston goes on to point out that Governor Walker has gotten away with this false narrative because journalists have failed to look closely at how employee pension plans work and have simply accepted the Governor’s word for it. Because of this, those who wish the unions ill have been able to seize on that narrative to score points by running ads and spreading the word that state employees pay next to nothing for their pensions and that it is all a big taxpayer give-away.
If it is true that pension and benefit money is money that already belongs to state workers, you might ask why state employees would not just take the cash as direct compensation and do their own investing for their retirement through their own individual retirement plans.
Again, simple.
Mr. Johnston continues-
Expecting individuals to be experts at investing their retirement money in defined contribution plans — instead of pooling the money so professional investors can manage the money as is done in defined benefit plans — is not sound economics. The concept, at its most basic, is buying wholesale instead of retail. Wholesale is cheaper for the buyers. That is, it saves taxpayers money. The Wisconsin State Investment Board manages about $74.5 billion for an all-in cost of $224 million. That is a cost of about 30-cents per $100, which is good but not great. However it is far less than many defined contribution plans, where costs are often $1 or more per $100.”
If the Wisconsin governor and state legislature were to be honest, they would correctly frame this issue. They are not, in fact, asking state employees to make a larger contribution to their pension and benefits programs as that would not be possible- the employees are already paying 100% of the contributions.
What they are actually asking is that the employees take a pay cut.
That may or may not be an appropriate request depending on your point of view – but the argument that the taxpayers are providing state workers with some gift is as false as the argument that state workers are paid better than employees with comparable education and skills in private industry.
Maybe state workers need to take pay cut along with so many of their fellow Americans. But let’s, at the least, recognize this sacrifice for what it is rather than pretending they’ve been getting away with some sweet deal that now must be brought to an end.
UPDATE: Since this post was published earlier today, many commenters have made the point that, while it is true that it is state employees’ own money that funds the pension plan, when the pension plan comes up short it is up to the taxpayer to make up the difference.
There is some truth in this – but not as much as many seem to think. Because the pension plan is a defined benefit plan – requiring the state to pay the agreed benefit for however long the employee may live in retirement- if the employee lives longer than the actuarial plan anticipated, the taxpayer is on the hook for the pay-outs during the longer life.
But is this the fault of the state employees? The pension agreements are the result of collective bargaining. That means that the state has every opportunity to properly calculate the anticipated lifespan and then add on some margin for error. What’s more, the losses taken by the pension funds over the past few years can hardly be blamed on the employees.
Take a look at what Sue Urahn, an expert on the subject at the Pew Center on the States, has to say about this when describing the $1 trillion gap that existed between the $2.35 trillion states had set aside to pay for employees’ retirement benefits and the $3.35 trillion price tag of those promises.at the end of 2008-
To a significant degree, the $1 trillion reflects states’ own policy choices and lack of discipline:
•• failing to make annual payments for pension systems at the levels recommended by their own actuaries;
•• expanding benefits and offering cost-of-living increases without fully considering their long-term price tag or determining how to pay for them; and
•• providing retiree health care without adequately funding it
Via Pew Center on the States
That is the point. While the governor of Wisconsin is busy trying to shift the blame to the workers in an effort to put an end to collective bargaining, the reality is that it was the state who punted on this – not the employees.
Further, by the state employee unions agreeing to the deal proposed by Walker on their benefits (as they have despite Walker’s refusal to accept it) they are taking on much - and possibly all – of the obligation out of their own pockets.
As a result, the taxpayers do not contribute to the public employee pension programs so much as serve as insurers. If their elected officials have been sloppy , the taxpayers must stand behind it. But if the market continues to perform as it has been performing this past year, don’t be surprised if the funding crisis begins to recede. If it does, what will you say then?
Tuesday, March 1, 2011
May 1933: Hitler Abolishes Unions
Ole Ole Olson
NEWS JUNKIE POST
Feb 20, 2011
http://newsjunkiepost.com/2011/02/20/may-1933-hitler-abolishes-unions
On May 2nd, 1933, the day after Labor day, Nazi groups occupied union halls and labor leaders were arrested. Trade Unions were outlawed by Adolf Hitler, while collective bargaining and the right to strike was abolished. This was the beginning of a consolidation of power by the fascist regime which systematically wiped out all opposition groups, starting with unions, liberals, socialists, and communists using Himmler’s state police.
Fast forward to America today, particularly Wisconsin. Governor Walker and the Republican/Tea Party members of the state legislature are attempting to pass a bill that would not only severely punish public unions (with exception for the police, fire, and state trooper unions that supported his campaign), but it would effectively end 50 years to the right of these workers to collectively bargain.
*
Collective bargaining is a process of voluntary negotiations between employers and trade unions aimed at reaching agreements which regulate working conditions. Collective agreements usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms and rights to participate in workplace or company affairs.
-wiki
First of all, assaulting the rights of workers to collectively bargain has absolutely nothing to do with any immediate budgetary issues. It does however have everything to do with ending one of the basic rights of labor to organize.
Second, and more importantly, the budget “crisis” in Wisconsin is both exaggerated and created in part by the new Republican power base as a tool to attack political opponents. Walker decreased state revenue when he enacted tax cuts for the rich and big corporations, who are not surprisingly large campaign donors for his political campaign.
*
To the extent that there is an imbalance — Walker claims there is a $137 million deficit — it is not because of a drop in revenues or increases in the cost of state employee contracts, benefits or pensions. It is because Walker and his allies pushed through $140 million in new spending for special-interest groups in January. If the Legislature were simply to rescind Walker’s new spending schemes — or delay their implementation until they are offset by fresh revenues — the “crisis” would not exist.
-The Cap Times
Decimating unions has long been an objective of the rich and powerful. Growing out of trade guilds in Medieval Europe, they were banned starting with the Ordinance of Labourers 1349 and Statute of Labourers in England. It was not until the Industrial Revolution that labor began to organize again.
Every little gain for the rights of workers was hard fought and bitterly resisted by the rich and powerful. The photo above shows the Lawrence Textile Strike (also known as the Bread and Roses strike) where mostly immigrant workers rebelled against increasingly harsh work conditions and lowered pay caused by mechanization. Specifically, state law mandated a reduction in working hours for women and children from 56 to 54 hours, and factory owners responded by cutting salaries, something the poor workers could not afford.
Over time, organized labor managed to abolish child labor all together, as well as institute an 8 hour work day, 40 hour work week, mandatory breaks, safety guidelines, grievance procedures, a minimum wage, the concept of a work free weekend, workers comp, pensions, health safeguards, and paid sick days, vacation days, and holidays. If you enjoy any of these things, thank a union member and support the passage of a strong Employee Free Choice Act (EFCA).
Collective Bargaining in the US was finally legalized for the private sector on a countrywide scale in 1935 with the National Labor Relations Act signed by FDR. JFK signed an executive order extending this right to the public sector in 1962.
Governor Walker’s bill being sped through the Wisconsin legislature would mandate health insurance contributions by public employees, force them to pay more for their promised pensions, and remove bargaining rights. When public employees started protesting, Walker instructed the state National Guard to be “prepared” if any “problems” should arise, in what could be described as a thinly veiled intimidation tactic.
Although this draconian bill will not outlaw unions, it will effectively neuter them, as their CPI adjusted wages will be frozen and all other means cannot be improved as a whole. Public sector unions will lose their freedom to negotiate against the state together. This is a deliberate tactic to punish political opponents and to effectively lessen the rights of working Americans everywhere for the benefit of the rich and multinational corporations.
*
Walker’s plan to eviscerate collective bargaining rights for public employees is right out of the Koch brothers’ playbook. Koch-backed groups like Americans for Prosperity, the Cato Institute, the Competitive Enterprise Institute, and the Reason Foundation have long taken a very antagonistic view toward public-sector unions. Several of these groups have urged the eradication of these unions. In Wisconsin, this conservative, anti-union view is being placed into action by lawmakers in sync with the deep-pocketed donors who helped them obtain power. (Walker also opposes the state’s Clean Energy Job Act, which would compel the state to increase its use of alternative energy.) At this moment—even with the Wisconsin uprising unresolved—the Koch brothers’ investment in Walker appears to be paying off.
-Mother Jones
In response to this open revolt on at the Wisconsin state capitol, which saw crowds initially in the hundreds quickly swell to tens of thousands, a Tea Party group hastily organized a counter rally on Sunday. Dozens of free buses were mysteriously available from both inside and outside the state for Tea Partiers, with no mention of who paid for them, leading to speculation that this is blatant corporate astroturfing. At publishing time no camels were being charged into the estimated 70,000 pro-worker/anti-Walker demonstrators [creative humor license].
*
The Americans for Prosperity group, a Tea Party group that is a Koch Brothers front, has put up a website [for the Tea Party Rally that] attacks all collective bargaining – not just for public employees’ unions.
-Forbes
Wisconsin is ground zero in the fight for worker’s rights in America. Following the ultra-conservative sweep of many state legislatures and governorships in the 2010 midterms, most Republicans are salivating at the opportunity to destroy the last stronghold of organized labor in America: the public sector.
*
Last year, more working people belonged to a union in the public sector (7.9 million) than in the private (7.4 million), despite the fact that corporate America employs five times the number of wage-earners. 37 percent of government workers belong to a union, compared with just 7 percent of private-sector employees.
-Alternet
The percentage of the work force that have been organized has been declining (along with many other things) since Reagan and the conservatives took power, ending the Great Compression and starting an epoch in American history known as the Great Divergence (which culminated in the Great Recession, which we are in today). Pro-corporate, fiscally conservative policies (such as deregulation and underfunding) have severely damaged private sector unions, unions that set the bar for standards and pay for all workers (thus, contributing towards the huge wealth concentration that is taking place).
The one point where this anti-union trend has not taken place is in the public sector.
This is precisely why the conservatives (mostly in the Republican Party) and their corporate masters are now planning the next phase in their strategy: to destroy public sector unions across the country. Right now, their assault has triggered a massive and growing revolt by not only public sector unions, but students, progressives, and working men and women across the Upper Midwest region of the US.
The corporate front groups are desperately trying to play catchup and unleash their Tea Party legions, who need little convincing as apparent from the We Stand With Walker Facebook page. The fear and hate caused by disinformation and Fox Propaganda is palpable, and they are only too eager to “fight back” against supposed union transgressions both in the workplace and in demonstrations.
Which brings us back full circle. Union busting measures by Republicans in Wisconsin this week have brought up some disturbing historical parallels to another sad chapter from human history. This writer is not trying to say that Republicans are Nazis and the Tea Party are their Brownshirts, only that the union busting, corporate control over the government is part of the definition of fascism (along with authoritarian nationalism).
The attacks on unions that are taking place in American society today echoes a very sad chapter in Western history where unions were smashed for the benefit of a far right authoritarian corporate regime. When Hitler abolished unions in 1933, it was followed by a 25% drop in real wages, and ended the ability of workers to protect living standards, and this is one of those times where history should not be allowed to repeat itself.
NEWS JUNKIE POST
Feb 20, 2011
http://newsjunkiepost.com/2011/02/20/may-1933-hitler-abolishes-unions
On May 2nd, 1933, the day after Labor day, Nazi groups occupied union halls and labor leaders were arrested. Trade Unions were outlawed by Adolf Hitler, while collective bargaining and the right to strike was abolished. This was the beginning of a consolidation of power by the fascist regime which systematically wiped out all opposition groups, starting with unions, liberals, socialists, and communists using Himmler’s state police.
Fast forward to America today, particularly Wisconsin. Governor Walker and the Republican/Tea Party members of the state legislature are attempting to pass a bill that would not only severely punish public unions (with exception for the police, fire, and state trooper unions that supported his campaign), but it would effectively end 50 years to the right of these workers to collectively bargain.
*
Collective bargaining is a process of voluntary negotiations between employers and trade unions aimed at reaching agreements which regulate working conditions. Collective agreements usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms and rights to participate in workplace or company affairs.
-wiki
First of all, assaulting the rights of workers to collectively bargain has absolutely nothing to do with any immediate budgetary issues. It does however have everything to do with ending one of the basic rights of labor to organize.
Second, and more importantly, the budget “crisis” in Wisconsin is both exaggerated and created in part by the new Republican power base as a tool to attack political opponents. Walker decreased state revenue when he enacted tax cuts for the rich and big corporations, who are not surprisingly large campaign donors for his political campaign.
*
To the extent that there is an imbalance — Walker claims there is a $137 million deficit — it is not because of a drop in revenues or increases in the cost of state employee contracts, benefits or pensions. It is because Walker and his allies pushed through $140 million in new spending for special-interest groups in January. If the Legislature were simply to rescind Walker’s new spending schemes — or delay their implementation until they are offset by fresh revenues — the “crisis” would not exist.
-The Cap Times
Decimating unions has long been an objective of the rich and powerful. Growing out of trade guilds in Medieval Europe, they were banned starting with the Ordinance of Labourers 1349 and Statute of Labourers in England. It was not until the Industrial Revolution that labor began to organize again.
Every little gain for the rights of workers was hard fought and bitterly resisted by the rich and powerful. The photo above shows the Lawrence Textile Strike (also known as the Bread and Roses strike) where mostly immigrant workers rebelled against increasingly harsh work conditions and lowered pay caused by mechanization. Specifically, state law mandated a reduction in working hours for women and children from 56 to 54 hours, and factory owners responded by cutting salaries, something the poor workers could not afford.
Over time, organized labor managed to abolish child labor all together, as well as institute an 8 hour work day, 40 hour work week, mandatory breaks, safety guidelines, grievance procedures, a minimum wage, the concept of a work free weekend, workers comp, pensions, health safeguards, and paid sick days, vacation days, and holidays. If you enjoy any of these things, thank a union member and support the passage of a strong Employee Free Choice Act (EFCA).
Collective Bargaining in the US was finally legalized for the private sector on a countrywide scale in 1935 with the National Labor Relations Act signed by FDR. JFK signed an executive order extending this right to the public sector in 1962.
Governor Walker’s bill being sped through the Wisconsin legislature would mandate health insurance contributions by public employees, force them to pay more for their promised pensions, and remove bargaining rights. When public employees started protesting, Walker instructed the state National Guard to be “prepared” if any “problems” should arise, in what could be described as a thinly veiled intimidation tactic.
Although this draconian bill will not outlaw unions, it will effectively neuter them, as their CPI adjusted wages will be frozen and all other means cannot be improved as a whole. Public sector unions will lose their freedom to negotiate against the state together. This is a deliberate tactic to punish political opponents and to effectively lessen the rights of working Americans everywhere for the benefit of the rich and multinational corporations.
*
Walker’s plan to eviscerate collective bargaining rights for public employees is right out of the Koch brothers’ playbook. Koch-backed groups like Americans for Prosperity, the Cato Institute, the Competitive Enterprise Institute, and the Reason Foundation have long taken a very antagonistic view toward public-sector unions. Several of these groups have urged the eradication of these unions. In Wisconsin, this conservative, anti-union view is being placed into action by lawmakers in sync with the deep-pocketed donors who helped them obtain power. (Walker also opposes the state’s Clean Energy Job Act, which would compel the state to increase its use of alternative energy.) At this moment—even with the Wisconsin uprising unresolved—the Koch brothers’ investment in Walker appears to be paying off.
-Mother Jones
In response to this open revolt on at the Wisconsin state capitol, which saw crowds initially in the hundreds quickly swell to tens of thousands, a Tea Party group hastily organized a counter rally on Sunday. Dozens of free buses were mysteriously available from both inside and outside the state for Tea Partiers, with no mention of who paid for them, leading to speculation that this is blatant corporate astroturfing. At publishing time no camels were being charged into the estimated 70,000 pro-worker/anti-Walker demonstrators [creative humor license].
*
The Americans for Prosperity group, a Tea Party group that is a Koch Brothers front, has put up a website [for the Tea Party Rally that] attacks all collective bargaining – not just for public employees’ unions.
-Forbes
Wisconsin is ground zero in the fight for worker’s rights in America. Following the ultra-conservative sweep of many state legislatures and governorships in the 2010 midterms, most Republicans are salivating at the opportunity to destroy the last stronghold of organized labor in America: the public sector.
*
Last year, more working people belonged to a union in the public sector (7.9 million) than in the private (7.4 million), despite the fact that corporate America employs five times the number of wage-earners. 37 percent of government workers belong to a union, compared with just 7 percent of private-sector employees.
-Alternet
The percentage of the work force that have been organized has been declining (along with many other things) since Reagan and the conservatives took power, ending the Great Compression and starting an epoch in American history known as the Great Divergence (which culminated in the Great Recession, which we are in today). Pro-corporate, fiscally conservative policies (such as deregulation and underfunding) have severely damaged private sector unions, unions that set the bar for standards and pay for all workers (thus, contributing towards the huge wealth concentration that is taking place).
The one point where this anti-union trend has not taken place is in the public sector.
This is precisely why the conservatives (mostly in the Republican Party) and their corporate masters are now planning the next phase in their strategy: to destroy public sector unions across the country. Right now, their assault has triggered a massive and growing revolt by not only public sector unions, but students, progressives, and working men and women across the Upper Midwest region of the US.
The corporate front groups are desperately trying to play catchup and unleash their Tea Party legions, who need little convincing as apparent from the We Stand With Walker Facebook page. The fear and hate caused by disinformation and Fox Propaganda is palpable, and they are only too eager to “fight back” against supposed union transgressions both in the workplace and in demonstrations.
Which brings us back full circle. Union busting measures by Republicans in Wisconsin this week have brought up some disturbing historical parallels to another sad chapter from human history. This writer is not trying to say that Republicans are Nazis and the Tea Party are their Brownshirts, only that the union busting, corporate control over the government is part of the definition of fascism (along with authoritarian nationalism).
The attacks on unions that are taking place in American society today echoes a very sad chapter in Western history where unions were smashed for the benefit of a far right authoritarian corporate regime. When Hitler abolished unions in 1933, it was followed by a 25% drop in real wages, and ended the ability of workers to protect living standards, and this is one of those times where history should not be allowed to repeat itself.
Aaron Rodgers: We Need Your Voice for Wisconsin's Working Families
by Dave Zirin | February 19, 2011
I believe in athletes having the freedom and space to take political stands without having to worry about media and corporate backlash. I believe in athletes having the freedom and space to NOT take political stands if that’s their choice. But I also believe that there are moments in history when silence itself becomes a political stand, a luxury we cannot afford. For Aaron Rodgers, the Green Bay Packers Super Bowl MVP quarterback, this is one of those moments. I’m just returning from Madison, Wisconsin where tens of thousands of teachers, nurses, unionists, and students, are fighting for their very lives. Day after day, I saw the crowds swell as people arrived on buses from across the state and even across the country. I saw feeder marches of 5,000 high school students chanting with an unguarded, proud fury you’d never know today’s teenagers possessed. I saw people dressed like King Tut with a banner saying they would “protest like Egyptians.” I spoke to nurses choking with rage that they would have to take second jobs or go onto food stamps if business as usual took place in the Capitol Building. I saw thousands sing the Wisconsin Badger football fight song, ending with “Fight Fight Fight and We’ll WIN THE DAY!” and they weren’t talking about football.
They’re trying to stop their Governor Scott Walker, also known as “The Mubarak of the Midwest”, from gutting their pay, benefits, and very right to collectively bargain. Walker has also threatened to bring in the National Guard if he can’t get his way. For those who don’t know, the budget “deficit”, Walker is so concerned about is a result of tax breaks he handed to out-of-state corporate donors, gutting the state’s surplus. Now he wants the workers to pay.
Already, five current and former members of the Super Bowl Champ Green Bay Packers, have spoken out against the bill. As Ed Garvey, the former head of the NFL Players Association, and proud Wisconsinite, said to me, “More Packers have now stood up for Wisconsin workers than DC democrats!” Already, the NFL Players Association has issued their own statement in support of Wisconsin’s working families. We must assume, that Aaron Rodgers, as the leader of the Packers and as the team’s union rep, has his fingerprints on both of these statements. But what we don’t have yet, is Aaron Rodgers’ voice.
Rodgers is a graduate of Cal Berkeley so he’s hardly unfamiliar with the power of protest. He’s, also according to my sources at the NFLPA, a fantastic union rep so he’s hardly unfamiliar with the critical necessity of collective bargaining rights. The crowds in Madison are aware of this as well. I saw dozens of Rodgers jerseys as well as signs that read, “Aaron Rodgers is a union rep!”
Gov. Walker wants a state where anything that’s not nailed down is for sale to multinational corporations. If he had his druthers, Lambeau Field would be renamed Kraft Macaroni and Cheesehead Stadium. Or he would just sell the team to Los Angeles for 50 cents on the dollar. He’s that craven, that unprincipled, that callous about the future for the people of Wisconsin.
Walker also says he has the “quiet majority” of Wisconsinites on his side. Given the unique place the Packers hold in the hearts of cheeseheads and given their status as a non-profit, fan owned team, there are no words for how much it would mean if Rodgers would issue a personal statement of solidarity. Last September, Rodgers said to the Sporting News, “Hopefully the legacy I’ll leave is one of somebody who was of high character, did things the right way, cared about his teammates, was coachable and was good to the community he lived in.” If that’s what Rodgers wants his legacy to be, the time is now. Aaron, your community needs you. Time to get your Berkeley-on and bring it to Badger-Land. One press conference, one quote, hell, one tweet. Anything but silence.
I believe in athletes having the freedom and space to take political stands without having to worry about media and corporate backlash. I believe in athletes having the freedom and space to NOT take political stands if that’s their choice. But I also believe that there are moments in history when silence itself becomes a political stand, a luxury we cannot afford. For Aaron Rodgers, the Green Bay Packers Super Bowl MVP quarterback, this is one of those moments. I’m just returning from Madison, Wisconsin where tens of thousands of teachers, nurses, unionists, and students, are fighting for their very lives. Day after day, I saw the crowds swell as people arrived on buses from across the state and even across the country. I saw feeder marches of 5,000 high school students chanting with an unguarded, proud fury you’d never know today’s teenagers possessed. I saw people dressed like King Tut with a banner saying they would “protest like Egyptians.” I spoke to nurses choking with rage that they would have to take second jobs or go onto food stamps if business as usual took place in the Capitol Building. I saw thousands sing the Wisconsin Badger football fight song, ending with “Fight Fight Fight and We’ll WIN THE DAY!” and they weren’t talking about football.
They’re trying to stop their Governor Scott Walker, also known as “The Mubarak of the Midwest”, from gutting their pay, benefits, and very right to collectively bargain. Walker has also threatened to bring in the National Guard if he can’t get his way. For those who don’t know, the budget “deficit”, Walker is so concerned about is a result of tax breaks he handed to out-of-state corporate donors, gutting the state’s surplus. Now he wants the workers to pay.
Already, five current and former members of the Super Bowl Champ Green Bay Packers, have spoken out against the bill. As Ed Garvey, the former head of the NFL Players Association, and proud Wisconsinite, said to me, “More Packers have now stood up for Wisconsin workers than DC democrats!” Already, the NFL Players Association has issued their own statement in support of Wisconsin’s working families. We must assume, that Aaron Rodgers, as the leader of the Packers and as the team’s union rep, has his fingerprints on both of these statements. But what we don’t have yet, is Aaron Rodgers’ voice.
Rodgers is a graduate of Cal Berkeley so he’s hardly unfamiliar with the power of protest. He’s, also according to my sources at the NFLPA, a fantastic union rep so he’s hardly unfamiliar with the critical necessity of collective bargaining rights. The crowds in Madison are aware of this as well. I saw dozens of Rodgers jerseys as well as signs that read, “Aaron Rodgers is a union rep!”
Gov. Walker wants a state where anything that’s not nailed down is for sale to multinational corporations. If he had his druthers, Lambeau Field would be renamed Kraft Macaroni and Cheesehead Stadium. Or he would just sell the team to Los Angeles for 50 cents on the dollar. He’s that craven, that unprincipled, that callous about the future for the people of Wisconsin.
Walker also says he has the “quiet majority” of Wisconsinites on his side. Given the unique place the Packers hold in the hearts of cheeseheads and given their status as a non-profit, fan owned team, there are no words for how much it would mean if Rodgers would issue a personal statement of solidarity. Last September, Rodgers said to the Sporting News, “Hopefully the legacy I’ll leave is one of somebody who was of high character, did things the right way, cared about his teammates, was coachable and was good to the community he lived in.” If that’s what Rodgers wants his legacy to be, the time is now. Aaron, your community needs you. Time to get your Berkeley-on and bring it to Badger-Land. One press conference, one quote, hell, one tweet. Anything but silence.
Stripping Workers' Rights Is The 'Responsible' Way To Balance This Budget
Wisconsin Lt. Governor: Stripping Workers' Rights Is The 'Responsible' Way To 'Balance This Budget'
2-22-2011
http://wonkroom.thinkprogress.org/2011/02/22/lt-gov-budget/
Protesting public workers in Wisconsin plan to continue demonstrating this week against Gov. Scott Walker's (R-WI) plan to strip them of their collective bargaining rights, as the state's Republican lawmakers said that they will move forward with their agenda in the absence of state Democrats (who have set up shop in Illinois, to deny the state Senate a quorum). Walker has thus far refused multiple compromises offered by both the workers themselves and a member of his own party, insisting that any deal include an elimination of collective bargaining rights for public employees.
Walker's stated reason for wanting to eliminate collective bargaining for state employees is Wisconsin's economic woes. Last night, Lt. Gov. Rebecca Kleefisch (R-WI) appeared on Fox News to claim that Walker's union-busting approach is necessary because "we're broke." "Our governor, Scott Walker, has chosen to do the responsible thing and tell the truth to the taxpayers of the state of Wisconsin, and balance this budget in a sound way," she said:
We just can't afford it. We're not joking when we say that we're broke. We don't have any money to negotiate with. [...] Wisconsin is proud to be a leader here. I think Gov. Scott Walker has done a tremendous job blaxing a trail when it comes to frugality and moderation as we approach a fiscal crisis. Because we know that Wisconsin is certainly not the only state facing this kind of deep budget crisis.
We have a $3.6 billion, with a b, deficit coming up in our next biennium. Right now, you know that for our budget repair bill we're facing a $137 million hole. That's what we need to fix, and that's what states around the nation are looking to fix. Some are choosing to fix it by raising taxes. We know that our hard-working families in Wisconsin can't afford that in the middle of the deepest economic recession in generations, and so our governor, Scott Walker, has chosen to do the responsible thing and tell the truth to the taxpayers of the state of Wisconsin, and balance this budget in a sound way.
Playing up budget woes during a time of high economic anxiety may make political sense, but the numbers don't support Kleefisch and Walker's claims. While Kleefisch cites a $3.6 billion deficit in the next state budget period as a justification for attacking workers' rights, it was Walker who pushed through a package of tax cuts that have significantly worsened the state's fiscal standing in that very timeframe. "Walker was not forced into a budget repair bill by circumstances beyond [his] control," said Jack Norman, research director at the Institute for Wisconsin Future. "He wanted a budget repair bill and forced it by pushing through tax cuts."
Even if Walker hadn't personally made the fiscal situation in his state much worse, stripping workers of collective bargaining rights won't actually make it any better, saving taxpayers "almost nothing." As John Sides pointed out, states with higher rates of unionization do not have higher budget deficits, while Wisconsin public employees already make substantially less money than their private sector counterparts. Wisconsin workers have already agreed to concessions on pay and benefits, so long as they retain their collective bargaining rights.
All in all, Walker and Kleefisch are using the guise of a budget crisis to push forward an ideological assault on unions and workers. Walker may want to remember that the last time he went union-busting in this manner, when he was Milwaukee County Executive in 2009, it ended up costing taxpayers hundreds of thousands of dollars.
--
For more News From Underground, visit http://markcrispinmiller.com/
2-22-2011
http://wonkroom.thinkprogress.org/2011/02/22/lt-gov-budget/
Protesting public workers in Wisconsin plan to continue demonstrating this week against Gov. Scott Walker's (R-WI) plan to strip them of their collective bargaining rights, as the state's Republican lawmakers said that they will move forward with their agenda in the absence of state Democrats (who have set up shop in Illinois, to deny the state Senate a quorum). Walker has thus far refused multiple compromises offered by both the workers themselves and a member of his own party, insisting that any deal include an elimination of collective bargaining rights for public employees.
Walker's stated reason for wanting to eliminate collective bargaining for state employees is Wisconsin's economic woes. Last night, Lt. Gov. Rebecca Kleefisch (R-WI) appeared on Fox News to claim that Walker's union-busting approach is necessary because "we're broke." "Our governor, Scott Walker, has chosen to do the responsible thing and tell the truth to the taxpayers of the state of Wisconsin, and balance this budget in a sound way," she said:
We just can't afford it. We're not joking when we say that we're broke. We don't have any money to negotiate with. [...] Wisconsin is proud to be a leader here. I think Gov. Scott Walker has done a tremendous job blaxing a trail when it comes to frugality and moderation as we approach a fiscal crisis. Because we know that Wisconsin is certainly not the only state facing this kind of deep budget crisis.
We have a $3.6 billion, with a b, deficit coming up in our next biennium. Right now, you know that for our budget repair bill we're facing a $137 million hole. That's what we need to fix, and that's what states around the nation are looking to fix. Some are choosing to fix it by raising taxes. We know that our hard-working families in Wisconsin can't afford that in the middle of the deepest economic recession in generations, and so our governor, Scott Walker, has chosen to do the responsible thing and tell the truth to the taxpayers of the state of Wisconsin, and balance this budget in a sound way.
Playing up budget woes during a time of high economic anxiety may make political sense, but the numbers don't support Kleefisch and Walker's claims. While Kleefisch cites a $3.6 billion deficit in the next state budget period as a justification for attacking workers' rights, it was Walker who pushed through a package of tax cuts that have significantly worsened the state's fiscal standing in that very timeframe. "Walker was not forced into a budget repair bill by circumstances beyond [his] control," said Jack Norman, research director at the Institute for Wisconsin Future. "He wanted a budget repair bill and forced it by pushing through tax cuts."
Even if Walker hadn't personally made the fiscal situation in his state much worse, stripping workers of collective bargaining rights won't actually make it any better, saving taxpayers "almost nothing." As John Sides pointed out, states with higher rates of unionization do not have higher budget deficits, while Wisconsin public employees already make substantially less money than their private sector counterparts. Wisconsin workers have already agreed to concessions on pay and benefits, so long as they retain their collective bargaining rights.
All in all, Walker and Kleefisch are using the guise of a budget crisis to push forward an ideological assault on unions and workers. Walker may want to remember that the last time he went union-busting in this manner, when he was Milwaukee County Executive in 2009, it ended up costing taxpayers hundreds of thousands of dollars.
--
For more News From Underground, visit http://markcrispinmiller.com/
Wisconsin Walks Like an Egyptian
From George Washington's Blog:
Yesterday, thousands of Wisconsin public workers protested the state's plan to cut benefits:
As USA Today notes:
House Budget Chairman Paul Ryan compared the protests in his home state of Wisconsin over Gov. Scott Walker's budget plan to the pro-democracy movement in Egypt.
Ryan, a Republican from Janesville, made his comments on MSNBC's Morning Joe program. In the Wisconsin state capital, teachers and labor union supporters swarmed the Senate chambers today to protest a bill that would strip most public employees of nearly all their collective bargaining rights.
"It's like Cairo's moved to Madison these days," Ryan said on MSNBC. "All of this demonstration ... it's fine. People should be able to express their way."
Mother Jones points out:
For the second straight day, demonstrators have been pouring into the streets of Madison, Wisconsin to protest Republican Governor Scott Walker's anti-union plan to address the state's $137 million budget shortfall, prompting comparisons (and denounciations of these comparisons) to the uprising in Egypt. Walker's proposal would limit the collective bargaining power of many state and local employees, and roughly doubles their health care premiums. It would also give public union members the right not to pay their dues, deflating the groups' coffers. Experts expect that Walker's provisions will be voted into law by the end of the week by the state assembly and senate—both of which are controlled by Republicans.
In response, Madison public school teachers have called in sick for a second straight day. And teachers in over a dozen other school districts have followed suit. Meanwhile, union leaders are picketing the capitol, planning vigils and setting up phone banks to try to block Walker's effort.
Protestors say that sounds a little…Mubaraky. They're carrying signs saying things like "Mubarak-check. Walker—?" and "Hosni Walker, Elected Dictator." And local liberal pundits are feeding the flames of anti-MubWalkerism. Liberal columnist Pat Schneider wrote that "[t]he success of a grass-roots uprising in Egypt in toppling strongman Hosni Mubarak was a source of inspiration for many of those who brainstormed Tuesday in Madison about resistance to attacks on US workers in several states." Meanwhile, Rep. Paul Ryan (R-Wisc.) told CNN "it's like Cairo's moved to Madison these days…[h]e's basically saying I want you public workers to pay half of what our private sector counterparts are, and he's getting riots."
AOL News reports:
Walker has upped the ante by threatening to bring in the National Guard if public workers decide to walk off the job or if their protests disrupt services around the state.
Labor activists responded by saying that Walker could ignite a "class war."
And now many are comparing Walker to former Egyptian President Hosni Mubarak, who tried to cling to power while protests roiled his country.
Dylan Ratigan notes that a large proportion of Wisconsin public employees' pension funds go to Wall Street:
The average Wisconsin state employee gets $24,500 a year. That’s not a very big pension. The state pension plan, 15% of the money going into it each year is being paid out to Wall Street to manage the money. That’s a really huge high percentage to pay out to Wall Street to manage the money.
And the Governor has ordered the Wisconsin state police to arrest all of the Democratic State Senators and return them to the Capital, but the Senate Democrats have fled the state.
Conservative writers like Mish and Karl Denninger slam the protesters (they're anti-union).
Indeed, the Democratic National Committee is apparently helping to organize the protests.
But Max Keiser writes:
It’s foolish to say these protests are about ‘labor’ or ‘unions.’ They’re about people getting their wealth stolen by banks. And whether it’s Cairo or Ohio, it’s the same banks. We are witnessing a Global Insurrection Against Banker Occupation...
Is The Revolt Spreading to America?
Thursday, February 17, 2011
http://www.georgewashington2.blogspot.com/2011/02/revolt-spreads-to-america.html
Yesterday, thousands of Wisconsin public workers protested the state's plan to cut benefits:
As USA Today notes:
House Budget Chairman Paul Ryan compared the protests in his home state of Wisconsin over Gov. Scott Walker's budget plan to the pro-democracy movement in Egypt.
Ryan, a Republican from Janesville, made his comments on MSNBC's Morning Joe program. In the Wisconsin state capital, teachers and labor union supporters swarmed the Senate chambers today to protest a bill that would strip most public employees of nearly all their collective bargaining rights.
"It's like Cairo's moved to Madison these days," Ryan said on MSNBC. "All of this demonstration ... it's fine. People should be able to express their way."
Mother Jones points out:
For the second straight day, demonstrators have been pouring into the streets of Madison, Wisconsin to protest Republican Governor Scott Walker's anti-union plan to address the state's $137 million budget shortfall, prompting comparisons (and denounciations of these comparisons) to the uprising in Egypt. Walker's proposal would limit the collective bargaining power of many state and local employees, and roughly doubles their health care premiums. It would also give public union members the right not to pay their dues, deflating the groups' coffers. Experts expect that Walker's provisions will be voted into law by the end of the week by the state assembly and senate—both of which are controlled by Republicans.
In response, Madison public school teachers have called in sick for a second straight day. And teachers in over a dozen other school districts have followed suit. Meanwhile, union leaders are picketing the capitol, planning vigils and setting up phone banks to try to block Walker's effort.
Protestors say that sounds a little…Mubaraky. They're carrying signs saying things like "Mubarak-check. Walker—?" and "Hosni Walker, Elected Dictator." And local liberal pundits are feeding the flames of anti-MubWalkerism. Liberal columnist Pat Schneider wrote that "[t]he success of a grass-roots uprising in Egypt in toppling strongman Hosni Mubarak was a source of inspiration for many of those who brainstormed Tuesday in Madison about resistance to attacks on US workers in several states." Meanwhile, Rep. Paul Ryan (R-Wisc.) told CNN "it's like Cairo's moved to Madison these days…[h]e's basically saying I want you public workers to pay half of what our private sector counterparts are, and he's getting riots."
AOL News reports:
Walker has upped the ante by threatening to bring in the National Guard if public workers decide to walk off the job or if their protests disrupt services around the state.
Labor activists responded by saying that Walker could ignite a "class war."
And now many are comparing Walker to former Egyptian President Hosni Mubarak, who tried to cling to power while protests roiled his country.
Dylan Ratigan notes that a large proportion of Wisconsin public employees' pension funds go to Wall Street:
The average Wisconsin state employee gets $24,500 a year. That’s not a very big pension. The state pension plan, 15% of the money going into it each year is being paid out to Wall Street to manage the money. That’s a really huge high percentage to pay out to Wall Street to manage the money.
And the Governor has ordered the Wisconsin state police to arrest all of the Democratic State Senators and return them to the Capital, but the Senate Democrats have fled the state.
Conservative writers like Mish and Karl Denninger slam the protesters (they're anti-union).
Indeed, the Democratic National Committee is apparently helping to organize the protests.
But Max Keiser writes:
It’s foolish to say these protests are about ‘labor’ or ‘unions.’ They’re about people getting their wealth stolen by banks. And whether it’s Cairo or Ohio, it’s the same banks. We are witnessing a Global Insurrection Against Banker Occupation...
Is The Revolt Spreading to America?
Thursday, February 17, 2011
http://www.georgewashington2.blogspot.com/2011/02/revolt-spreads-to-america.html
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