Enough of this bullsh@# trying to paint Wisconsin as a "tax hell." The Milwaukee Journal Sentinel, in step with their corporate cronies, complains continually about the taxes in Wisconsin. (The latest article states Wisconsin has improved, but, nevertheless, still implies we're onerous.)
[And, seriously, if, as a nation, we are so concerned with taxation, then we need federally standardized tax rules, equally written and applied to all states. Not our current hodge-podge of individually state-controlled breaks, bribery, and favoritism.]
We have a good standard of living and quality service-provision in Wisconsin. The total tax burden isn't the problem here, it's the tax incidence (who pays?).
For Further Reading:
Measuring Tax Burden by Progessivity and Social Justice
Shifting Tax Burden
Tax Burden Illumination
Tax Burden Shifting: Exemptions
Tax Fairness and Uniformity
Wisconsin Tax Truths in the Land of Tax Trickery
Friday, November 27, 2009
Smart Growth?
It's great that back in 1999 Wisconsin got on the Smart Growth bandwagon and required Wisconsin counties and communities to adopt a growth plan within 10 years. But how serious were we?
A month or so before plans are due many communities will fail to make the deadline. The State may lengthen the deadline to 2012, with no penalty. Another sign of how seriously we take our environmental responsibility.
Nine specific areas were to be addressed in the growth plan:
Can we really say we have a "smart" growth plan when we continue to ignore the elephants in the room - the continued growth of edge cities, the enabling of resource (water) starved exurbs, and our dependence on highways and automobiles?
And, yet, after all of this, many are certain there will be lawsuits over the development rules.
Smart growth is something that has to be done at the state-level. Otherwise parochial shortsightedness will rule the day and we'll accomplish nothing, other than costly courtroom battles for generations.
A month or so before plans are due many communities will fail to make the deadline. The State may lengthen the deadline to 2012, with no penalty. Another sign of how seriously we take our environmental responsibility.
Nine specific areas were to be addressed in the growth plan:
- Housing
- Transportation
- Utilities & Community Facilities
- Agricultural, Natural and Cultural Resources
- Economic Development
- Intergovernmental Cooperation
- Land Use
- Issues and Opportunities
- Implementation
Can we really say we have a "smart" growth plan when we continue to ignore the elephants in the room - the continued growth of edge cities, the enabling of resource (water) starved exurbs, and our dependence on highways and automobiles?
And, yet, after all of this, many are certain there will be lawsuits over the development rules.
Smart growth is something that has to be done at the state-level. Otherwise parochial shortsightedness will rule the day and we'll accomplish nothing, other than costly courtroom battles for generations.
Monday, November 23, 2009
Eat The Rich
Great article by Sam Pizzigati, fellow at the Institute for Policy Studies, Have The Rich Won?
Excerpts:
Excerpts:
- Americans in the bottom 90% saw their average incomes increase a meager $47 a year between 1974 and 2007.
- The top 1% households made 12 times more income than the bottom 90% households in 1974, 42 times more in 2007.
- In 1955, our 400 highest incomes averaged $12.3 million...they paid over half their incomes, 51.2% in federal income tax. In 2006, the top 400 averaged an astounding $263 million each in income...paid, after loopholes, just 17.2% of their incomes in federal taxes.
- Between the 1940s and the mid 1960s, America's richest faced at least a 91% federal tax rate on earned income over $400,000. The top rate today: 35%.
Sunday, November 22, 2009
Walk(er) Away
Scott Walker rode into town, full of right-wing talking points, promising glory and growth for Milwaukee County.
He's failed. County could face another budget crisis in 2010.
He's gutted services, flip-flopped on serving only one term, terminated family-supporting jobs, all while digging a deeper budgetary hole for the county.
Scott should forget about being governor, go back to school and finish his college degree, then (try to) become a productive member of society. Public service is not his forte.
Scott, I'm sure CRG or WPRI will bring you aboard. You've robotically perfected parroting conservative one-liners.
He's failed. County could face another budget crisis in 2010.
He's gutted services, flip-flopped on serving only one term, terminated family-supporting jobs, all while digging a deeper budgetary hole for the county.
Scott should forget about being governor, go back to school and finish his college degree, then (try to) become a productive member of society. Public service is not his forte.
Scott, I'm sure CRG or WPRI will bring you aboard. You've robotically perfected parroting conservative one-liners.
Saturday, November 21, 2009
Laughable Curve
Tax cuts as public policy prescription for economic growth have been empirically proven ineffective for decades. Arthur Laffer's curve is a laugher indeed.
As James Rowen highlights, John Kovari, of the Public Policy Forum, finds more corroborating evidence to support this conclusion.
The fact that we as a society and as policy makers have to point out, over and over again, that tax cuts are not a panacea for growth is depressing. As Oliver Wendell Holmes stated, taxes are the price we pay for a civilized society.
It's time we revert back to an evidence-based policy-making environment. We cannot allow the Republicans, and the pliant media, to keep telling us black is white. This debate should have ended long ago.
(Blind faith in the tax cut mantra...yet another reason Scott Walker is unfit for governor.)
For Further Reading:
Because I Said So Is Not An Answer
Failing To Pass The Laffer Test
Scott Walker Puts Milwaukee County Residents at Risk
Slippery Scott Selling Snake Oil
Tax Cuts Don't Boost Revenues
Tax Cuts: Myths & Realities
Who's Laffer-ing Now?
As James Rowen highlights, John Kovari, of the Public Policy Forum, finds more corroborating evidence to support this conclusion.
The fact that we as a society and as policy makers have to point out, over and over again, that tax cuts are not a panacea for growth is depressing. As Oliver Wendell Holmes stated, taxes are the price we pay for a civilized society.
It's time we revert back to an evidence-based policy-making environment. We cannot allow the Republicans, and the pliant media, to keep telling us black is white. This debate should have ended long ago.
(Blind faith in the tax cut mantra...yet another reason Scott Walker is unfit for governor.)
For Further Reading:
Because I Said So Is Not An Answer
Failing To Pass The Laffer Test
Scott Walker Puts Milwaukee County Residents at Risk
Slippery Scott Selling Snake Oil
Tax Cuts Don't Boost Revenues
Tax Cuts: Myths & Realities
Who's Laffer-ing Now?
Thursday, November 19, 2009
Drama Queen
Sarah Palin claims to not like drama. She’s much too sophisticated for such pettiness. Yet, every chance she has, she amplifies the drama.
This is all done, obviously, to keep her name in the media, to ensure book deals and speaking engagements, and to keep attention on someone whom, without such drama, would be a non-entity.
Update:
Stephen Colbert comments on Sarah Palin's "steaming pile of s@#%" that is her book.
For Further Reading:
Sarah Palin's Top 10 Falsehoods
The 18 Biggest Falsehoods in Sarah Palin's Book
Monday, November 16, 2009
Sunday, November 15, 2009
Job Creation
Two good articles from the Journal Sentinel (here and here) highlighting the need for job creation programs. This should be the focus of the next stimulus package.
For Further Reading:
It's About Job Shortage, Not Skills Mismatch
It's No Time To Cut Public Investments
Job Creation Versus Training
Potential Funding Sources for Public Job Creation Initiatives
Promising Findings From Ten Public Job Creation Initiatives
The Challenge of Job Creation
For Further Reading:
It's About Job Shortage, Not Skills Mismatch
It's No Time To Cut Public Investments
Job Creation Versus Training
Potential Funding Sources for Public Job Creation Initiatives
Promising Findings From Ten Public Job Creation Initiatives
The Challenge of Job Creation
Saturday, November 14, 2009
Watering Down Corporate Accountability
Lately, there's been a big push for making Milwaukee a water research hub. Richard Meeusen, CEO of Badger Meter Inc. and board member of WMC, has been one of the number one cheerleaders behind such efforts.
In 2003, Badger Meter paid $125, 728 in corporate income taxes. In 2004, they paid $418,391. 2009 net earnings of Badger Meter were $14.35 million; alongside $60.8 million in sales. The IRS recently allowed Badger Meter "a tax break on operations in France the company discontinued in 2006." Badger Meter has also outsourced some research and development as another cost-savings measure. Next year, the company will move one-third of it's factory jobs to Mexico. Even though Badger Meter's sales were down 11.6 percent from 2008 ($68.83 million) to 2009 ($60.81), their net income was up 146 percent ($5.83 million to $14.36 million).
In 2007 Richard Meeusen was compensated $842,331 (1.2 percent of earnings; 14.4 percent of net income). In 2008 he made $1,082,133 (1.8 percent of earnings; 8 percent of net income).
Are these the types of companies we want to lead our community forward? Public-private partnerships (taxpayers partially fund the costs, private entities get the profits) are the norm. But knowing this, why would we continue to push this inverse Robin Hood scheme of having general taxpayers finance private sector speculation? In this case, pumping private dollars into facilities and research and allowing the transfer of this knowledge to private entities for their profit. Why must the knowledge and discoveries of our universities and public sector be spun off to private entities? Why would we allow such efforts to be outsourced to Mexico? In the long-run it seems such efforts would be better kept in public hands under local control. Especially in the case of water, which is now recognized as our most valuable resource.
Badger Meter benefits heavily, already from the tax code. Now they are positioning themselves for yet another subsidy, by piggybacking the frenzied environment of "water research" in the City.
The same companies that benefit from such public investment are usually the ones barking in the media about a "government takeover," "socialist policies," and the unfairness of social programs and policies that support the neediest. (Even those these programs are only 1 percent of the State budget.) Contrarily, they never fail to have their hand out.
If these companies would also be promoting living wages, secure retirements, universal health care, unionization, and other social goods, I'd have no problem with a portion of public dollars investing in such responsible, community-oriented companies. Sadly, this is rarely the case. Therefore, it's time to turn off the subsidy/tax-break spigot and allow these companies to operate in the "free" market they so adore.
Update:
The Journal Sentinel gave an editorial platform to Richard Meeusen and Paul Jones, CEO of AO Smith, to disparage the University of Wisconsin investigating whether or not to implement water programs at 13 of the university's campuses. They feel it would dilute the efforts and spread the initiative too thin.
[If this water research initiative is the end-all, be-all, why hasn't their been any discussion and debate about it? The only opposition to putting all our eggs in one basket, came from UWM professor Marc Levine. The reaction to his research, which completely debunked the idea of an entrepreneurial university and Milwaukee as water research hub, was derision and unresponsiveness. UWM's water program deserves investment. (So do many other university programs.) But this isn't about whether or not they are deserving, it is precisely about placing all our bets on one roll of the dice. Being such astute businessmen, I'm sure Meeusen and Smith can appreciate portfolio diversification.]
I don't completely disagree with Meeusen and Smith's reaction. Although their view may have more to do with concentrating the efforts and investment near their businesses in Milwaukee, than with a truly altruistic dedication to water research. Campuses such as Green Bay, Superior, and Parkside, which are also on/near Lakes Superior and Michigan, could be valuable partners in water research.
In 2003, Badger Meter paid $125, 728 in corporate income taxes. In 2004, they paid $418,391. 2009 net earnings of Badger Meter were $14.35 million; alongside $60.8 million in sales. The IRS recently allowed Badger Meter "a tax break on operations in France the company discontinued in 2006." Badger Meter has also outsourced some research and development as another cost-savings measure. Next year, the company will move one-third of it's factory jobs to Mexico. Even though Badger Meter's sales were down 11.6 percent from 2008 ($68.83 million) to 2009 ($60.81), their net income was up 146 percent ($5.83 million to $14.36 million).
In 2007 Richard Meeusen was compensated $842,331 (1.2 percent of earnings; 14.4 percent of net income). In 2008 he made $1,082,133 (1.8 percent of earnings; 8 percent of net income).
Are these the types of companies we want to lead our community forward? Public-private partnerships (taxpayers partially fund the costs, private entities get the profits) are the norm. But knowing this, why would we continue to push this inverse Robin Hood scheme of having general taxpayers finance private sector speculation? In this case, pumping private dollars into facilities and research and allowing the transfer of this knowledge to private entities for their profit. Why must the knowledge and discoveries of our universities and public sector be spun off to private entities? Why would we allow such efforts to be outsourced to Mexico? In the long-run it seems such efforts would be better kept in public hands under local control. Especially in the case of water, which is now recognized as our most valuable resource.
Badger Meter benefits heavily, already from the tax code. Now they are positioning themselves for yet another subsidy, by piggybacking the frenzied environment of "water research" in the City.
The same companies that benefit from such public investment are usually the ones barking in the media about a "government takeover," "socialist policies," and the unfairness of social programs and policies that support the neediest. (Even those these programs are only 1 percent of the State budget.) Contrarily, they never fail to have their hand out.
If these companies would also be promoting living wages, secure retirements, universal health care, unionization, and other social goods, I'd have no problem with a portion of public dollars investing in such responsible, community-oriented companies. Sadly, this is rarely the case. Therefore, it's time to turn off the subsidy/tax-break spigot and allow these companies to operate in the "free" market they so adore.
Update:
The Journal Sentinel gave an editorial platform to Richard Meeusen and Paul Jones, CEO of AO Smith, to disparage the University of Wisconsin investigating whether or not to implement water programs at 13 of the university's campuses. They feel it would dilute the efforts and spread the initiative too thin.
[If this water research initiative is the end-all, be-all, why hasn't their been any discussion and debate about it? The only opposition to putting all our eggs in one basket, came from UWM professor Marc Levine. The reaction to his research, which completely debunked the idea of an entrepreneurial university and Milwaukee as water research hub, was derision and unresponsiveness. UWM's water program deserves investment. (So do many other university programs.) But this isn't about whether or not they are deserving, it is precisely about placing all our bets on one roll of the dice. Being such astute businessmen, I'm sure Meeusen and Smith can appreciate portfolio diversification.]
I don't completely disagree with Meeusen and Smith's reaction. Although their view may have more to do with concentrating the efforts and investment near their businesses in Milwaukee, than with a truly altruistic dedication to water research. Campuses such as Green Bay, Superior, and Parkside, which are also on/near Lakes Superior and Michigan, could be valuable partners in water research.
Tuesday, November 10, 2009
Save Our City
We are finally beginning to publicly discuss UWM's "entrepreneurial" strategy, specifically their proposed engineering school on County grounds near Wauwatosa. Too bad much of the dialogue is condescending and superficial. The cabal of power brokers hell-bent on pushing forward with the suburban location are rather dismissive and disdainful of anyone questioning such a move.
Their well-reasoned and sound analysis, supporting such a suburban locale, comes in such stellar verifications as, "may offer," "difficult to measure," and "there is no guarantee that new research will bear fruit." Alongside such airtight assurances, platitudes such as, "Milwaukee needs to take a risk," and "we have to get in the game," are paraded out by sympathetic cheerleaders.
The "long-term potential is very strong," claims Rita Cheng, UWM vice chancellor for academic affairs. Just saying so, they seem to feel, makes it so. And, in the same article, Tom Daykin of the Journal Sentinel reports Michael Lovell, dean of UWM's College of Engineering and Applied Science, agrees. What a surprise that the dean of an engineering school would agree with an massive infusion of investment dollars into his department.
Their sloganeering and incessant boosterism is reminiscent of the lottery: "You gotta get in it, if you want to win it!" The problem is, the chances of UWM and Milwaukee winning with this investment are similar to the odds of actually winning the lottery. Faced with an actual analysis revealing the experience of the majority of universities over the past few decades attempting an "entrepreneurial" strategy has been a poor return on their investment, the cabal, like Pollyanna, bury their collective head in the sand and reaffirm, Stick To The Plan.
For an urban university to march forward with expansion plans in the suburbs, in this age of environmental awareness, borders on criminal. Growing within the City and encouraging others to do such...talk about an opportunity to have a long-lasting, sustainable, and community-friendly impact.
There is nothing quite as intellectually dishonest as academics, supposedly schooled in the scientific method, showing an aversion to data collection and analysis, open debate, and allowing the research to lead us to the most optimal conclusions. No. The cheerleaders will have none of that.
The Journal Sentinel editorial, as usual, is right behind, beating the drum. They believe UWM is "right to stick to the plan." They never corroborate why UWM must stay the course, provide any research findings or data collection of their own, or quantify why this facility, at this location, is a can't-miss and a must-do for Milwaukee.
The Journal editorial is a collection of anecdotes. The Journal, along with fellow boosters, completely ignores the actual return other universities have experienced regarding such developments [not] initiating collaborative efforts and [nor] attracting venture capital. All this in addition to the fact that the other supposed outcomes these snakeoil salesmen are promising have not been the results for the majority of other universities.
This doesn't mean not to build new facilities somewhere, or that the programs are somehow undeserving of investment. But maybe they can be scaled back a bit. Let's possibly revitalize older buildings or blighted strips in older neighborhoods of the city. (Which could spur investment in the most needy areas of the city, while also moving the university forward.) The investment could also be spread out over more of the departments at the university, capitalizing on numerous strengths, rather than putting all the eggs in one or two baskets.
There are more options available. There is no need to rush ahead with the suburban proposal. The University and the City need to look at this a bit more carefully before they make any decisions that will effect our City and it's largest public university for many generations to come.
Their well-reasoned and sound analysis, supporting such a suburban locale, comes in such stellar verifications as, "may offer," "difficult to measure," and "there is no guarantee that new research will bear fruit." Alongside such airtight assurances, platitudes such as, "Milwaukee needs to take a risk," and "we have to get in the game," are paraded out by sympathetic cheerleaders.
The "long-term potential is very strong," claims Rita Cheng, UWM vice chancellor for academic affairs. Just saying so, they seem to feel, makes it so. And, in the same article, Tom Daykin of the Journal Sentinel reports Michael Lovell, dean of UWM's College of Engineering and Applied Science, agrees. What a surprise that the dean of an engineering school would agree with an massive infusion of investment dollars into his department.
Their sloganeering and incessant boosterism is reminiscent of the lottery: "You gotta get in it, if you want to win it!" The problem is, the chances of UWM and Milwaukee winning with this investment are similar to the odds of actually winning the lottery. Faced with an actual analysis revealing the experience of the majority of universities over the past few decades attempting an "entrepreneurial" strategy has been a poor return on their investment, the cabal, like Pollyanna, bury their collective head in the sand and reaffirm, Stick To The Plan.
For an urban university to march forward with expansion plans in the suburbs, in this age of environmental awareness, borders on criminal. Growing within the City and encouraging others to do such...talk about an opportunity to have a long-lasting, sustainable, and community-friendly impact.
There is nothing quite as intellectually dishonest as academics, supposedly schooled in the scientific method, showing an aversion to data collection and analysis, open debate, and allowing the research to lead us to the most optimal conclusions. No. The cheerleaders will have none of that.
The Journal Sentinel editorial, as usual, is right behind, beating the drum. They believe UWM is "right to stick to the plan." They never corroborate why UWM must stay the course, provide any research findings or data collection of their own, or quantify why this facility, at this location, is a can't-miss and a must-do for Milwaukee.
The Journal editorial is a collection of anecdotes. The Journal, along with fellow boosters, completely ignores the actual return other universities have experienced regarding such developments [not] initiating collaborative efforts and [nor] attracting venture capital. All this in addition to the fact that the other supposed outcomes these snakeoil salesmen are promising have not been the results for the majority of other universities.
This doesn't mean not to build new facilities somewhere, or that the programs are somehow undeserving of investment. But maybe they can be scaled back a bit. Let's possibly revitalize older buildings or blighted strips in older neighborhoods of the city. (Which could spur investment in the most needy areas of the city, while also moving the university forward.) The investment could also be spread out over more of the departments at the university, capitalizing on numerous strengths, rather than putting all the eggs in one or two baskets.
There are more options available. There is no need to rush ahead with the suburban proposal. The University and the City need to look at this a bit more carefully before they make any decisions that will effect our City and it's largest public university for many generations to come.
Saturday, November 7, 2009
The Funnies
Lies, Lies, Lies
As is their want, the right-wing is energetically espousing revisionist and false views, and accomplishing their objective of having these lies envelop and permeate public discourse, thereby, sadly, steering the debate.
Complaints regarding President Obama's employment numbers are simply petty, bitter, and nothing less than an attempt to besmirch the President and score political points.
First, stimulus policies have stabilized what could have been a second Great Depression. And, let's not forget which party was in office the last eight years, not dithering, but actively encouraging the bubble economy by continuing to deregulate, loosening monetary policy, and a completely disregarding any oversight.
Second, to expect the Obama administration to overcome this economic juggernaut of a mess in the ten months they have been in office [some started complaining merely weeks into his first term] is not only mind-boggling, it shows a complete lack of understanding of economics, business cycles, and previous economic downturns and their recoveries.
How many jobs did George Bush create per year while he was in office? 375,00 - the worst total among U.S. presidents. Unemployment increased from 4.2 to 7.2 percent during the Bush reign. This all after inheriting a surplus from the Clinton administration. The fact that Bush pissed that away with giveaways and tax cuts to his cronies didn't help matters.
These facts are never mentioned by the right and their sheep. They pretend Barack Obama created all of these problems since taking office. And, let's not forget, the initial $700 billion bailout was initiated by the outgoing Bush administration.
During an economic recovery, the initial-phase success gauge is "jobs saved." One can not seriously expect some magical initiative to simply revert the economy back to full employment overnight. Or are these cranks advocating a Public Works Program?
The general idea, and hope, is to return to a more stable and sustainable economy. Slowly returning to full employment, with the ability to create steady growth while maintaining less volatility in the market. Thus enabling, again, full employment.
To pretend trillions of dollars, due to the collapsed bubble, in lost wealth can be re-created within a few months is disingenuous and counterproductive to our discourse. These critics have two choices (as I see it): sit back, enjoy unemployment, and wait for the market to correct everything, which could take a while; or, allow the government to create public jobs (repairing infrastructure, etc.) and spend on needed policies and programs to make up the difference now.
Complaints regarding President Obama's employment numbers are simply petty, bitter, and nothing less than an attempt to besmirch the President and score political points.
First, stimulus policies have stabilized what could have been a second Great Depression. And, let's not forget which party was in office the last eight years, not dithering, but actively encouraging the bubble economy by continuing to deregulate, loosening monetary policy, and a completely disregarding any oversight.
Second, to expect the Obama administration to overcome this economic juggernaut of a mess in the ten months they have been in office [some started complaining merely weeks into his first term] is not only mind-boggling, it shows a complete lack of understanding of economics, business cycles, and previous economic downturns and their recoveries.
How many jobs did George Bush create per year while he was in office? 375,00 - the worst total among U.S. presidents. Unemployment increased from 4.2 to 7.2 percent during the Bush reign. This all after inheriting a surplus from the Clinton administration. The fact that Bush pissed that away with giveaways and tax cuts to his cronies didn't help matters.
These facts are never mentioned by the right and their sheep. They pretend Barack Obama created all of these problems since taking office. And, let's not forget, the initial $700 billion bailout was initiated by the outgoing Bush administration.
During an economic recovery, the initial-phase success gauge is "jobs saved." One can not seriously expect some magical initiative to simply revert the economy back to full employment overnight. Or are these cranks advocating a Public Works Program?
The general idea, and hope, is to return to a more stable and sustainable economy. Slowly returning to full employment, with the ability to create steady growth while maintaining less volatility in the market. Thus enabling, again, full employment.
To pretend trillions of dollars, due to the collapsed bubble, in lost wealth can be re-created within a few months is disingenuous and counterproductive to our discourse. These critics have two choices (as I see it): sit back, enjoy unemployment, and wait for the market to correct everything, which could take a while; or, allow the government to create public jobs (repairing infrastructure, etc.) and spend on needed policies and programs to make up the difference now.
Development Idea(s) Vacancy
More hilarity from the Journal Sentinel in Right Place, Right Time.
Yes, more development boosterism. They editorialize about the Moderne, on Third and Juneau, being a project that will "kick-start" the Park East. And it will only cost the city "about $10 million."
They quote a Wally Morics' (City Comptroller) report, "The City is not a bank, and the loans would set a precedent for city support." Newsflash: that precedent was set decades ago. Public-private partnerships are old hat. Taxpayers have been funding a whole host of private playgrounds for years.
We've been using, primarily, our bonding to fund private real estate speculation, rather than having our money invested in public transportation, sick leave, a living wage, and other more specifically public uses.
The article rambles on about, "special circumstances," and "the quality of this project." It's 203 apartments and 14 condos. How such a project addresses the "special circumstances" or is of such high "quality" is unknown.
The editorial also implies a need for more downtown apartments. No analysis is given to support such claims. Then, in the very next sentence, they talk of how the condo market isn't doing very well. Won't some of the vacant condo projects, that are already out there, be rented as apartments? We should subsidize more vacant space? Is that the best use of our investment dollar?
Yes, more development boosterism. They editorialize about the Moderne, on Third and Juneau, being a project that will "kick-start" the Park East. And it will only cost the city "about $10 million."
They quote a Wally Morics' (City Comptroller) report, "The City is not a bank, and the loans would set a precedent for city support." Newsflash: that precedent was set decades ago. Public-private partnerships are old hat. Taxpayers have been funding a whole host of private playgrounds for years.
We've been using, primarily, our bonding to fund private real estate speculation, rather than having our money invested in public transportation, sick leave, a living wage, and other more specifically public uses.
The article rambles on about, "special circumstances," and "the quality of this project." It's 203 apartments and 14 condos. How such a project addresses the "special circumstances" or is of such high "quality" is unknown.
The editorial also implies a need for more downtown apartments. No analysis is given to support such claims. Then, in the very next sentence, they talk of how the condo market isn't doing very well. Won't some of the vacant condo projects, that are already out there, be rented as apartments? We should subsidize more vacant space? Is that the best use of our investment dollar?
Luring Lunacy
The Journal Sentinel's 'bend over and take it for business' boosterism is on full display in Tax Credits, Loans Luring Entrepreneurial Start-ups.
The article basically rounds up the cast of giveaways Wisconsin (and others) uses to try to attract and retain business. It then concedes they work wonderfully and we need more. Yet the rankings and dollar amounts they highlight in the article hardly support any such conclusion.
There is no discussion in the piece regarding this 'site-consultant, tax break, war-among-the-states' paradigm upon which the development world operates. It is simply presented with no contemplation of alternatives. There could have been some deliberation or opposing viewpoints describing this system as inefficient bribery and blackmail, distorting more optimal and effective outcomes and locational decisions.
Does the Journal Sentinel report anymore or are they just corporate PR shills?
The article basically rounds up the cast of giveaways Wisconsin (and others) uses to try to attract and retain business. It then concedes they work wonderfully and we need more. Yet the rankings and dollar amounts they highlight in the article hardly support any such conclusion.
There is no discussion in the piece regarding this 'site-consultant, tax break, war-among-the-states' paradigm upon which the development world operates. It is simply presented with no contemplation of alternatives. There could have been some deliberation or opposing viewpoints describing this system as inefficient bribery and blackmail, distorting more optimal and effective outcomes and locational decisions.
Does the Journal Sentinel report anymore or are they just corporate PR shills?
A Giant Sucking Sound
Half of the $1.4 trillion in commercial real estate mortgages due in the next five years currently owe more than they're worth.
We're not out of the woods yet. We should listen to Joe Stiglitz, nationalize bad banks, and get these toxic assets out of the system already.
For Further Reading:
Commercial Real Estate Is Next
Yet Another Bubble
We're not out of the woods yet. We should listen to Joe Stiglitz, nationalize bad banks, and get these toxic assets out of the system already.
For Further Reading:
Commercial Real Estate Is Next
Yet Another Bubble
Holding Cities Hostage
The Institute for Wisconsin's Future has the whole story of the Mercury Marine debacle.
For Further Reading:
Mercury Marine Twisted Saga
For Further Reading:
Mercury Marine Twisted Saga
Soak 'Em
Shouldn't the water rate increase difference between the City and the suburbs be a disincentive for persons or businesses to locate in the suburbs? I can accept higher water rates as a City resident. But suburban rates should be substantially higher, to dissuade further sprawl. Shouldn't the cost of water be one of the main tools used in nudging greater density and more environmentally conscious development? [Kind of like the cost of gasoline, but that's for another day.]
The current City proposal wants to increase the City 28.5 percent and the suburbs 36 percent. The average City resident will pay about $.47 more per day. While the average suburban resident will pay $.59 more per day. Hardly enough to discourage unsustainable development.
Yet, even this minuscule increase has the suburbs up in arms. They feel they shouldn't have to pay more to "support Milwaukee's general fund, since they would see no benefits from more money for general city operations."
Yes, I guess the suburban leaders are really that ignorant. They believe their growth was in spite of and not due to or aided by Milwaukee. Freeways do nothing to help cities, since they allow the majority of traffic to bypass city streets. Yet, we keep building them to the benefit of the suburbs. Their shortsightedness and selfishness is really appalling.
Rather than offering free water to attract businesses to the City, they could just put in place a rate structure which would make the City the obviously better choice. Thus, making such a site selection decision a no-brainer because of the evident savings.
If the suburbs want/need Milwaukee water, I say, "Soak 'em!"
The current City proposal wants to increase the City 28.5 percent and the suburbs 36 percent. The average City resident will pay about $.47 more per day. While the average suburban resident will pay $.59 more per day. Hardly enough to discourage unsustainable development.
Yet, even this minuscule increase has the suburbs up in arms. They feel they shouldn't have to pay more to "support Milwaukee's general fund, since they would see no benefits from more money for general city operations."
Yes, I guess the suburban leaders are really that ignorant. They believe their growth was in spite of and not due to or aided by Milwaukee. Freeways do nothing to help cities, since they allow the majority of traffic to bypass city streets. Yet, we keep building them to the benefit of the suburbs. Their shortsightedness and selfishness is really appalling.
Rather than offering free water to attract businesses to the City, they could just put in place a rate structure which would make the City the obviously better choice. Thus, making such a site selection decision a no-brainer because of the evident savings.
If the suburbs want/need Milwaukee water, I say, "Soak 'em!"
Friday, November 6, 2009
Tuesday, November 3, 2009
Impatience
After eight years of shit, and Obama being unable to bring the world back from the brink of destruction in ten months, we need to keep banging our head against the same old wall.
Monday, November 2, 2009
Fair and Balanced Puerility
"A man-child...a large ego...narcissistic..."
The negatives, outlandish claims, and petty personal insults are aplenty in this "educational" interview.
Guess who?
Impetuously, and without a trace of self-awareness, that is Rush Limbaugh describing President Obama to Chris Wallace.
The negatives, outlandish claims, and petty personal insults are aplenty in this "educational" interview.
Guess who?
Impetuously, and without a trace of self-awareness, that is Rush Limbaugh describing President Obama to Chris Wallace.
Taking The Long View
John Gurda has a great article with some thoughtful points regarding the future of Milwaukee, the public sector, taxes, and the irrelevancy we will face if we keep making the wrong choices.
All Wet
Do we have to give our water away?
The City of Milwaukee is considering giving free water to businesses that locate in the City and create jobs.
We have a comparative advantage in water and lower water rates than most of the country. This means "water-intensive" industries locating in Milwaukee would pay cheaper rates than they would in alternate suburban or water-starved areas. This is already a cost-savings for business.
The "low-cost" option, reduced rates for a defined period of time (contingent upon job creation and retention over that period) may be understandable as an additional attraction incentive. But completely free water seems a bit much.
In this new era of water wars, a reduced rate, alone, should attract business.
Water is a finite resource. Lets not give it away.
The City of Milwaukee is considering giving free water to businesses that locate in the City and create jobs.
We have a comparative advantage in water and lower water rates than most of the country. This means "water-intensive" industries locating in Milwaukee would pay cheaper rates than they would in alternate suburban or water-starved areas. This is already a cost-savings for business.
The "low-cost" option, reduced rates for a defined period of time (contingent upon job creation and retention over that period) may be understandable as an additional attraction incentive. But completely free water seems a bit much.
In this new era of water wars, a reduced rate, alone, should attract business.
Water is a finite resource. Lets not give it away.
Thursday, October 29, 2009
Growth At Any Cost
Just pondering here...
Our local "watchdog," the Journal Sentinel always supports (if not outright, at minimum with a subdued advocacy): real estate development, stadiums, convention centers, pretty much any spending proposed by our private sector growth machine.
I'm all for the unionized jobs created by projects. Especially if they're publicly-supported projects, they need to be employed with union workers. I just think there are projects that are more important and make more sense for our economy, now and in the long-run.
Do we need more apartments and condos? If so, how about we repair blighted buildings, rather than building anew. Why not steer the investment toward the most depressed and needful areas of our city? Aren't there more important issues to address, which will also provide a better return on investment?
Conversely, why is the Journal Sentinel always against: sick leave, prevailing wage clauses, community benefits agreements, union workers, pretty much any public-sector-related (or moral) issue, program, or project?
For Further Reading:
Sick Over Sick Days
Our local "watchdog," the Journal Sentinel always supports (if not outright, at minimum with a subdued advocacy): real estate development, stadiums, convention centers, pretty much any spending proposed by our private sector growth machine.
I'm all for the unionized jobs created by projects. Especially if they're publicly-supported projects, they need to be employed with union workers. I just think there are projects that are more important and make more sense for our economy, now and in the long-run.
Do we need more apartments and condos? If so, how about we repair blighted buildings, rather than building anew. Why not steer the investment toward the most depressed and needful areas of our city? Aren't there more important issues to address, which will also provide a better return on investment?
Conversely, why is the Journal Sentinel always against: sick leave, prevailing wage clauses, community benefits agreements, union workers, pretty much any public-sector-related (or moral) issue, program, or project?
For Further Reading:
Sick Over Sick Days
Wednesday, October 28, 2009
The Middleman's Cut
One-third of the cost of our health care system is purely waste.
That's private sector efficiency for you. It's efficient at steering money into the capitalists' and their cronies pockets. But it doesn't do much for the rest of us.
Cutting out the wasteful, private-sector middle-man, by itself, would pay for universal medical coverage.
That's private sector efficiency for you. It's efficient at steering money into the capitalists' and their cronies pockets. But it doesn't do much for the rest of us.
Cutting out the wasteful, private-sector middle-man, by itself, would pay for universal medical coverage.
Monday, October 26, 2009
Sunday, October 25, 2009
Stadium Swindle
The rumblings have been increasing for a few years now. Another boondoggle is about to be thrust upon the Milwaukee metropolitan area taxpayers: public subsidization of a new basketball arena for the Milwaukee Bucks. (The Bucks just received $5 million, over two years, for renovations from the State in the latest budget.)
The usual story-line is being presented. Many of the same characters and boosters of the Miller Park swindle are involved in securing public money to build a new private basketball stadium. Many of the same mantras and "benefits" are blathered about and claimed whether the project is a stadium, a convention center, an industrial park, a research park, and a host of other supposed economic "game changers" and "engines."
We need to do this. If we don't, the Bucks may leave. The team can't compete with such an outdated stadium. We have to keep the team to remain a "major league" city. [Whatever would we do with our leisure time and money if we didn't have a professional basketball team?] If you build it, many jobs will be created, it will attract tourists, and it will drive other business creation nearby the stadium and throughout the region.
In a few cases, this is true. In the majority of cities, these claims are demonstrably false. The modern-day, largely publicly-financed stadium is a white elephant representing regressive urban tax and economic policy. The primary beneficiaries of new stadium construction are the team owners and players.
The Bradley Center is Non-Union
Facilities built with public money should employ unionized workers earning a living wage, with health care benefits, a stable retirement plan, and the ability to collectively bargain. Public dollars should not be used to subsidize low-wage, seasonal employment.
Job Creation and Spillover
Economists whom have gathered the employment numbers of census tracts, cities, metro areas, and zip codes near newly built stadiums have found no meaningful improvement due to the construction of a new stadium. My own research uncovered declines in employment in the sectors most linked to stadium commerce (retail, restaurant, etc.) in the years up to construction and following completion.
These jobs are primarily seasonal, lacking benefits, and do not pay a living wage. Actively subsidizing such employment attracts less-skilled workers and does nothing to improve the future prospects for a highly-skilled, high value workforce.
New Business Creation
Likewise, the sectors most linked to stadium commerce also show no significant increase in new businesses. Again, many cities actually have experienced a decline. Most new stadium developments are self-contained islands with shopping, food, parking, and numerous other retail activities. People come to the games, park on expansive (and environmentally insensitive) parking lots, spend money within the stadium, and then drive home. Many newer stadiums are located off exit ramps; there is no pedestrian-friendly element that ties the stadium to the adjacent neighborhood. More often, the stadium becomes a competitive drain on other local taverns, restaurants, and retail stores nearby.
Intangible "Major League" Status
It sounds cool to say, "We're in the big leagues!" But what does it really mean? And how is it measured so that we may understand, quantitatively, how it is benefiting us. Policy and investment decisions should be based on rigorous analysis and visible rewards, not wishful thinking and snappy sloganeering.
Tourism Delusions, Realignment and Substitution
The majority of those attending games come from within the metropolitan area. For a city, or a region, to actually experience growth, to achieve some sort of gain from hosting games, people need to come from outside the region. Otherwise attendees are merely realigning their spending within the area; no growth is taking place. And, even if someone from Chicago does attend a game in Milwaukee, if the money they spend is money they would have otherwise spent in Chicago, there is no net gain for the region as a whole. Unless attending the game is money they otherwise would not have spent, growth is not occurring. A zero sum game.
"Fantasy City" Investment Strategy
Every city can not be a sports mecca, a convention behemoth, nor a tourism magnet. The more every city keeps trying to emulate each other with the same, largely unsubstantiated, development strategies, more will be losers. Development needs to build on comparative advantages, sectoral strengths, and labor force skills. Trying to mold a city's future to meet the successes of another with a completely different set of historical circumstances and skill-sets is lunacy. Largely, throwing money down the drain.
Opportunity Cost
Millions spent on stadiums can not be spent on other, more pressing, needs. Money given to the Bradley Center and Miller Park is money we can't use on replacing the Hoan Bridge, redeveloping the Pabst Brewery, cleaning up the Kinnickinnic River, building a high-speed rail network, cleaning up the Great Lakes, along with a litany of more important investment choices.
Conclusion
It's time private entities, especially those as extracurricular as sports, paid their own expenses. This is yet another sector of the economy where we've allowed a 'too big to fail' model hamstring our development options and leave us open to bribery and threats of leaving. Federal legislation is needed to end this war among the cities and to break up the cartel that is major league sports.
For Further Reading:
A Public Plan
Drowning in Delusions
Loot, Loot, Loot For The Home Team
Nudging Away Nonsense
Professional Sports Subsidies
Should Cities Pay For Sports Facilities
Stadium Subsidies
Subsidy Resources
Welcome to Walmart
The usual story-line is being presented. Many of the same characters and boosters of the Miller Park swindle are involved in securing public money to build a new private basketball stadium. Many of the same mantras and "benefits" are blathered about and claimed whether the project is a stadium, a convention center, an industrial park, a research park, and a host of other supposed economic "game changers" and "engines."
We need to do this. If we don't, the Bucks may leave. The team can't compete with such an outdated stadium. We have to keep the team to remain a "major league" city. [Whatever would we do with our leisure time and money if we didn't have a professional basketball team?] If you build it, many jobs will be created, it will attract tourists, and it will drive other business creation nearby the stadium and throughout the region.
In a few cases, this is true. In the majority of cities, these claims are demonstrably false. The modern-day, largely publicly-financed stadium is a white elephant representing regressive urban tax and economic policy. The primary beneficiaries of new stadium construction are the team owners and players.
The Bradley Center is Non-Union
Facilities built with public money should employ unionized workers earning a living wage, with health care benefits, a stable retirement plan, and the ability to collectively bargain. Public dollars should not be used to subsidize low-wage, seasonal employment.
Job Creation and Spillover
Economists whom have gathered the employment numbers of census tracts, cities, metro areas, and zip codes near newly built stadiums have found no meaningful improvement due to the construction of a new stadium. My own research uncovered declines in employment in the sectors most linked to stadium commerce (retail, restaurant, etc.) in the years up to construction and following completion.
These jobs are primarily seasonal, lacking benefits, and do not pay a living wage. Actively subsidizing such employment attracts less-skilled workers and does nothing to improve the future prospects for a highly-skilled, high value workforce.
New Business Creation
Likewise, the sectors most linked to stadium commerce also show no significant increase in new businesses. Again, many cities actually have experienced a decline. Most new stadium developments are self-contained islands with shopping, food, parking, and numerous other retail activities. People come to the games, park on expansive (and environmentally insensitive) parking lots, spend money within the stadium, and then drive home. Many newer stadiums are located off exit ramps; there is no pedestrian-friendly element that ties the stadium to the adjacent neighborhood. More often, the stadium becomes a competitive drain on other local taverns, restaurants, and retail stores nearby.
Intangible "Major League" Status
It sounds cool to say, "We're in the big leagues!" But what does it really mean? And how is it measured so that we may understand, quantitatively, how it is benefiting us. Policy and investment decisions should be based on rigorous analysis and visible rewards, not wishful thinking and snappy sloganeering.
Tourism Delusions, Realignment and Substitution
The majority of those attending games come from within the metropolitan area. For a city, or a region, to actually experience growth, to achieve some sort of gain from hosting games, people need to come from outside the region. Otherwise attendees are merely realigning their spending within the area; no growth is taking place. And, even if someone from Chicago does attend a game in Milwaukee, if the money they spend is money they would have otherwise spent in Chicago, there is no net gain for the region as a whole. Unless attending the game is money they otherwise would not have spent, growth is not occurring. A zero sum game.
"Fantasy City" Investment Strategy
Every city can not be a sports mecca, a convention behemoth, nor a tourism magnet. The more every city keeps trying to emulate each other with the same, largely unsubstantiated, development strategies, more will be losers. Development needs to build on comparative advantages, sectoral strengths, and labor force skills. Trying to mold a city's future to meet the successes of another with a completely different set of historical circumstances and skill-sets is lunacy. Largely, throwing money down the drain.
Opportunity Cost
Millions spent on stadiums can not be spent on other, more pressing, needs. Money given to the Bradley Center and Miller Park is money we can't use on replacing the Hoan Bridge, redeveloping the Pabst Brewery, cleaning up the Kinnickinnic River, building a high-speed rail network, cleaning up the Great Lakes, along with a litany of more important investment choices.
Conclusion
It's time private entities, especially those as extracurricular as sports, paid their own expenses. This is yet another sector of the economy where we've allowed a 'too big to fail' model hamstring our development options and leave us open to bribery and threats of leaving. Federal legislation is needed to end this war among the cities and to break up the cartel that is major league sports.
For Further Reading:
A Public Plan
Drowning in Delusions
Loot, Loot, Loot For The Home Team
Nudging Away Nonsense
Professional Sports Subsidies
Should Cities Pay For Sports Facilities
Stadium Subsidies
Subsidy Resources
Welcome to Walmart
Rewarding Corruption
Dean Baker wonders Why Are Contracts for AIG Execs Different Than Contracts for Autoworkers?
"Back in the spring, the Obama administration had no problem insisting that union autoworkers give up some of the health care benefits that they were entitled to in their contract. In some cases, workers had already put in more than 30 years earning these benefits. Note that this was before any of the manufacturers went into bankruptcy.
While these workers were forced to make large concessions on contractually promised benefits, we are told yet again that AIG, an effectively bankrupt company, has a contractual obligation to pay big bonuses to its top executives and traders. It would be interesting to hear why this would be the case and if it is legally committed, why shouldn't the company just go into bankruptcy now that the immediate post-Lehman panic is over."
Saturday, October 24, 2009
Wack Jobs
If It Wasn't For You Meddling Kids
The Journal Sentinel is against direct democracy.
"Last year, a coalition led by 9to5, the National Association of Working Women, put together a petition drive that ended up imposing a sick leave ordinance on businesses in the city of Milwaukee. The well-intentioned ordinance was in fact bad for business and economic development efforts, but it was approved anyway, although it later was overturned by the courts."
Development that benefits local workers, ordinances that allow people to take time off to care for a child or parent or personal illness, and businesses that encourage such activities are "bad" according to the Journal Sentinel.
The fact that this ordinance did not pass is yet another example of the spineless failures of the leadership of this City, including the local media. From throwing money at convention centers, stadiums, suburban research parks, or bribe-money to move a company two miles from Glendale to Milwaukee. Being one of only two major cities without or not planning a rail system. To continue beating our head against this same paradigm wishing for more equitable and stable results is insanity.
Also, the Journal Sentinel, good little soldier of the Growth Machine, could not forget to boost for Waukesha's water diversion. The suburbs are a big part (the majority actually) of the Journal's readership. Growth at the fringes, possibly selling more newspapers, is good for the Journal. Social justice and environmental sustainability be damned!
I'm sold glad these "watchdogs" are looking out for me.
For Further Reading:
Nudging Away Nonsense
Race To The Bottom
"Last year, a coalition led by 9to5, the National Association of Working Women, put together a petition drive that ended up imposing a sick leave ordinance on businesses in the city of Milwaukee. The well-intentioned ordinance was in fact bad for business and economic development efforts, but it was approved anyway, although it later was overturned by the courts."
Development that benefits local workers, ordinances that allow people to take time off to care for a child or parent or personal illness, and businesses that encourage such activities are "bad" according to the Journal Sentinel.
The fact that this ordinance did not pass is yet another example of the spineless failures of the leadership of this City, including the local media. From throwing money at convention centers, stadiums, suburban research parks, or bribe-money to move a company two miles from Glendale to Milwaukee. Being one of only two major cities without or not planning a rail system. To continue beating our head against this same paradigm wishing for more equitable and stable results is insanity.
Also, the Journal Sentinel, good little soldier of the Growth Machine, could not forget to boost for Waukesha's water diversion. The suburbs are a big part (the majority actually) of the Journal's readership. Growth at the fringes, possibly selling more newspapers, is good for the Journal. Social justice and environmental sustainability be damned!
I'm sold glad these "watchdogs" are looking out for me.
For Further Reading:
Nudging Away Nonsense
Race To The Bottom
Thursday, October 22, 2009
Unequal
The Gilded Age returns. Until wages again reward productivity rather than speculation (which has occurred alongside the post late-1970s increase in inequality) we will continue to experience, more frequently, economic boom-and-bust periods.
Poverty Measurement Studies and Alternative Measures from the U.S Census Bureau.
Poverty Measurement Studies and Alternative Measures from the U.S Census Bureau.
Taxes...
What do you really get for your money?
clean(er) air
clean(er) water
roads
highways
bridges
dams
automobiles
public transportation (planes, trains, buses)
sewers
sanitation
electricity
parks
preserves
arboretums
sanding, salting, plowing
fire protection
police protection
judicial system
prison system
education
health care
retirement
coast guard
armed services
The list continues.
Is every cent spent wisely? No. I'd prefer we didn't hand out subsidies to the companies holding our cities hostage by threatening job loss. Instead, we should subsidize the companies that make sectoral, historical, and labor-force sense.
But it seems there is very little waste, comparatively speaking. We sure do get quite the bang for our buck through taxation for public service provision.
clean(er) air
clean(er) water
roads
highways
bridges
dams
automobiles
public transportation (planes, trains, buses)
sewers
sanitation
electricity
parks
preserves
arboretums
sanding, salting, plowing
fire protection
police protection
judicial system
prison system
education
health care
retirement
coast guard
armed services
The list continues.
Is every cent spent wisely? No. I'd prefer we didn't hand out subsidies to the companies holding our cities hostage by threatening job loss. Instead, we should subsidize the companies that make sectoral, historical, and labor-force sense.
But it seems there is very little waste, comparatively speaking. We sure do get quite the bang for our buck through taxation for public service provision.
Wednesday, October 21, 2009
Place
The Daily Reporter's dismissive title, KK River project siphons from city tax base, misrepresents the beneficial investment opportunity for improving the habitability, sense of place, and aesthetics of the river. Not to mention the general cleanliness of the water and positive environmental impact.
This project would improve overall values by razing the floodplain homes, allowing this land to revert to its natural state, whilst simultaneously increasing the value of the property adjacent to this land, but that is unaffected by the possibility of flood water.
Infrastructure matters. It is the city.
These are the long-term investments that reap rewards for generations.
Also:
States Invest More In Energy Efficiency
This project would improve overall values by razing the floodplain homes, allowing this land to revert to its natural state, whilst simultaneously increasing the value of the property adjacent to this land, but that is unaffected by the possibility of flood water.
Infrastructure matters. It is the city.
These are the long-term investments that reap rewards for generations.
Also:
States Invest More In Energy Efficiency
FOXed Up
WOW! What planet are these "people" living on? A hot steaming pile of delusional incoherence.
(Not So) Bright Lights
The Wisconsin Department of Commerce issued a report showing that film tax credits as an economic development strategy are not cost-effective. But so much for reasoned analysis, Wisconsin has maintained the incentives.
Cost Benefit Analysis of Wisconsin's Film Tax Credit Program
Cost Benefit Analysis of Wisconsin's Film Tax Credit Program
Cheerleading Inefficiency
Michael Rosen, economics professor and blogger of Midcoast Views, rebukes Scott Walker's proposal of an Office of Business Development for the County, in a Journal Sentinel article, Development Proposal is Grandstanding.
Rosen reminds us, "Lest we forget, Milwaukee County had an Economic and Community Development Division that Walker dismantled to cut costs." As Rosen shows, though, this one would be different because the employees would be appointed by Walker without input from the County Board.
The other stunning factoid in this ridiculous proposal from Walker is the support and boosterism it has received from the Journal Sentinel. The same paper that amps up drama around public-workers' contracts and pay (to sell papers), now is pushing for government expansion in what would be one of the most unneeded, duplicative bureaucracies yet.
Rosen reminds us, "Lest we forget, Milwaukee County had an Economic and Community Development Division that Walker dismantled to cut costs." As Rosen shows, though, this one would be different because the employees would be appointed by Walker without input from the County Board.
The other stunning factoid in this ridiculous proposal from Walker is the support and boosterism it has received from the Journal Sentinel. The same paper that amps up drama around public-workers' contracts and pay (to sell papers), now is pushing for government expansion in what would be one of the most unneeded, duplicative bureaucracies yet.
Tuesday, October 20, 2009
Inverse Socialism
Great article, from Bob Herbert, calling for an end to the Safety Nets for the Rich.
Friday, October 16, 2009
Shaming The Hucksters
Great interview from Rachel Maddow. This is how reporters and journalists should cut through the endless drivel that is paraded in front of us by "credible" organizations, as "viable" opinions, and from "grass roots" movements. If only more in the fourth estate actually took their job seriously, we could have meaningful, useful, and timely debate and discussion.
Thursday, October 15, 2009
The Slow Lane(s)
Is it me or is the Marquette interchange, especially since its expensive "upgrade," slower than it has ever been?
Could it be induced demand?
Could it be induced demand?
Monday, October 12, 2009
Sunday, October 11, 2009
Sunday Reading
ACORN: Federal Governments Best Investment
Affordable Housing Innovations
Economics of Models
Ending LEEDs Monopoly
High-Speed Rail: A No-Brainer
Midwest Has Highest Per Capita Rate of Iraq War Fatalities and Casualties
On Endless Growth
Owners No More
Perils of Waterfront Development
Private Equity Vultures
Problems With Securitization
Too Politically Connected To Fail In Any Crisis
Transport of Tomorrow
Whitopia
Affordable Housing Innovations
Economics of Models
Ending LEEDs Monopoly
High-Speed Rail: A No-Brainer
Midwest Has Highest Per Capita Rate of Iraq War Fatalities and Casualties
On Endless Growth
Owners No More
Perils of Waterfront Development
Private Equity Vultures
Problems With Securitization
Too Politically Connected To Fail In Any Crisis
Transport of Tomorrow
Whitopia
Bank Bullies
Why doesn't any meaningful reform - that benefits most working Americans - ever happen in D.C.? Barry Ritholtz explains.
Saturday, October 10, 2009
Foxes In The Hen House
We should not be surprised when government, during periods controlled by those whom admonish the public sector, performs poorly - services are cut, deficits swell, programs disappear.
Conservatives criticize government for all its failures. But the economic failures are primarily concentrated under Republican administrations.
Maybe government isn't bad after all. Maybe the way Republicans govern is the real problem.
Conservatives criticize government for all its failures. But the economic failures are primarily concentrated under Republican administrations.
Maybe government isn't bad after all. Maybe the way Republicans govern is the real problem.
Colleges: Cash Cows?
Marc Levine (University of Wisconsin-Milwaukee history and urban studies professor) has released a report, The False Promise of the Entrepreneurial University, questioning the validity, efficacy, and opportunity cost of UWM's 'university as economic engine' development strategy.
He is not stipulating that universities do not have any affect on economic development outcomes for their surrounding areas. As some have wrongfully, stunningly, and incoherently ranted. He merely shows the data which - when measured by a variety of socioeconomic indicators - exposes few of those whom have attempted such a strategy have reaped benefits to justify the cost.
John Torinus - Serigraph Inc. chairman and tax-avoider, and Journal Sentinel business-class mouth-piece - belittles the research. He sites Madison's University Research Park as one such 'entrepreneurial university' project that has worked, and therefore, forget the numerous examples and statistics that Levine has gathered, we should continue blindly moving forward, pumping money into ill-conceived, poorly planned, and empirically unsubstantiated ventures. Facts and well-reasoned discussion be damned!
John Wiley, chancellor emeritus University of Wisconsin-Madison, takes swipes at the research. Using much of the same anecdotal, status quo-clinging, vested-interest, economic development talking-points that have been mistakenly used over and over again in city after city.
I also see many commenters, whom I have to assume only bothered to read Levine's Journal Sentinel piece and not his full report, complaining that Professor Levine doesn't acknowledge UW-Madison's successes. Although, he mentions Madison numerous times in his report.
Simply wishing and hoping to be like another university (in this case, Madison) that has achieved entrepreneurial success, or throwing money at a "good bet," does not automatically make it happen. Taking risks can pay off. There are always risks in investing. But most want to minimize their risk and not just do something for the sake of doing something.
Also, I'm always a bit perplexed by those knocking the research of academics - the "cheap seats" as John Torinus put it. Or as one commenter said about Levine, "...directs a few campus centers and does not appear to have any major leadership experiences." Directing an academic center is not leadership? Who teaches those whom will become managers, executives and CEOs? Isn't it academics and professors? If professors don't know what they're talking about and they're not "leaders," why are we investing in the engineering and Water Institute professors? After all, they come from the "cheap seats," too.
Attack the message, not the messenger. If one can find holes in the methodology and analysis, fine, pick it apart. But to try and demean Professor Levine because he has raised questions regarding UWM's development proposal is childish and does nothing to substantively address the concerns he has documented.
UWM is on the right track in many regards. The University has made great strides in academics and in the community over the last few decades. But that doesn't absolve them from criticism and open discussion of their policies and community investment decisions.
Many detractors have made this into a Levine versus Santiago melodrama. That's too bad. The real point should be a discussion about what is the proper amount to invest, where, and toward what activities. Levine's research indicates we may want to look at other options for our limited investment dollars. We do not have to simply jump at any idea Mr. Santiago, his associated commercial interests, and the cabal of local power brokers pushes forward.
[Disclosure: I was formerly employed by the Center for Economic Development under the directorship of Marc Levine.]
He is not stipulating that universities do not have any affect on economic development outcomes for their surrounding areas. As some have wrongfully, stunningly, and incoherently ranted. He merely shows the data which - when measured by a variety of socioeconomic indicators - exposes few of those whom have attempted such a strategy have reaped benefits to justify the cost.
John Torinus - Serigraph Inc. chairman and tax-avoider, and Journal Sentinel business-class mouth-piece - belittles the research. He sites Madison's University Research Park as one such 'entrepreneurial university' project that has worked, and therefore, forget the numerous examples and statistics that Levine has gathered, we should continue blindly moving forward, pumping money into ill-conceived, poorly planned, and empirically unsubstantiated ventures. Facts and well-reasoned discussion be damned!
John Wiley, chancellor emeritus University of Wisconsin-Madison, takes swipes at the research. Using much of the same anecdotal, status quo-clinging, vested-interest, economic development talking-points that have been mistakenly used over and over again in city after city.
I also see many commenters, whom I have to assume only bothered to read Levine's Journal Sentinel piece and not his full report, complaining that Professor Levine doesn't acknowledge UW-Madison's successes. Although, he mentions Madison numerous times in his report.
Simply wishing and hoping to be like another university (in this case, Madison) that has achieved entrepreneurial success, or throwing money at a "good bet," does not automatically make it happen. Taking risks can pay off. There are always risks in investing. But most want to minimize their risk and not just do something for the sake of doing something.
Also, I'm always a bit perplexed by those knocking the research of academics - the "cheap seats" as John Torinus put it. Or as one commenter said about Levine, "...directs a few campus centers and does not appear to have any major leadership experiences." Directing an academic center is not leadership? Who teaches those whom will become managers, executives and CEOs? Isn't it academics and professors? If professors don't know what they're talking about and they're not "leaders," why are we investing in the engineering and Water Institute professors? After all, they come from the "cheap seats," too.
Attack the message, not the messenger. If one can find holes in the methodology and analysis, fine, pick it apart. But to try and demean Professor Levine because he has raised questions regarding UWM's development proposal is childish and does nothing to substantively address the concerns he has documented.
UWM is on the right track in many regards. The University has made great strides in academics and in the community over the last few decades. But that doesn't absolve them from criticism and open discussion of their policies and community investment decisions.
Many detractors have made this into a Levine versus Santiago melodrama. That's too bad. The real point should be a discussion about what is the proper amount to invest, where, and toward what activities. Levine's research indicates we may want to look at other options for our limited investment dollars. We do not have to simply jump at any idea Mr. Santiago, his associated commercial interests, and the cabal of local power brokers pushes forward.
[Disclosure: I was formerly employed by the Center for Economic Development under the directorship of Marc Levine.]
Backstabbing Bankers
Bill Foy is back ranting his typical right-wing talking-points - government is bad, unions are bad, blah blah blah. Funny, as a former banker, he doesn't mention the cost to society of the debacle bankers have caused. I'm sure his next piece will hypothesize that securitization, mortgage backed securities, and collateralized debt obligations were the fault of unions.
Yes, even though taxes on business, and in general, have been falling, supposedly unionized public workers are driving up costs. The trillions of dollars that taxpayers are now insuring through the Fed, the Treasury, and the FDIC, somehow that money doesn't enter Foy's radar.
We've actually seen decreases in the number of public workers. These workers are paying more for insurance, taking furloughs, taking wage freezes, and making sacrifices. Alongside this, service provision is also being cut. Which is why pools and libraries are closing, potholes are not being repaired, parks are overgrown and unkempt, and a host of other cutbacks are taking place.
Look in the mirror, Bill. You and your cronies are to blame for the current economy and the volatility in the markets.
For Further Reading:
Deficit Financed Delirium
Failure Bonuses
Financial Services Organizations Lobbyists Influence
Has Financial Development Made the World Riskier?
Union Yes
Yes, even though taxes on business, and in general, have been falling, supposedly unionized public workers are driving up costs. The trillions of dollars that taxpayers are now insuring through the Fed, the Treasury, and the FDIC, somehow that money doesn't enter Foy's radar.
We've actually seen decreases in the number of public workers. These workers are paying more for insurance, taking furloughs, taking wage freezes, and making sacrifices. Alongside this, service provision is also being cut. Which is why pools and libraries are closing, potholes are not being repaired, parks are overgrown and unkempt, and a host of other cutbacks are taking place.
Look in the mirror, Bill. You and your cronies are to blame for the current economy and the volatility in the markets.
For Further Reading:
Deficit Financed Delirium
Failure Bonuses
Financial Services Organizations Lobbyists Influence
Has Financial Development Made the World Riskier?
Union Yes
The Walker Journal Sentinel
Has the Journal Sentinel become Scott Walker's personal PR firm? Newsflash - hey Journal, Scott Walker is an adult (or so he says), let him defend himself against petty attacks [this complaint in no way is meant to justify Holloway's statement].
This is embarrassingly biased reporting. The Journal is out front on anything Scott Walker spews, reporting to us about his "great" ideas. Now they are also coming to his defense.
This is embarrassingly biased reporting. The Journal is out front on anything Scott Walker spews, reporting to us about his "great" ideas. Now they are also coming to his defense.
Democratize The Fed
Representative Mary Kaptur (Ohio) suggested to Ben Bernanke that he give as much power in the Federal Reserve decision-making process to the Cleveland Fed as is already given to the New York Fed. He would not do it.
A subtle, inquisitively nudging question illuminating the power disparity between finance and the real economy, between New York and Cleveland, and between the Haves and the Have-nots.
All this and more was discussed on the last Bill Moyer's Journal. Simon Johnson, of MIT and Baseline Scenario, also offers his perspective.
A subtle, inquisitively nudging question illuminating the power disparity between finance and the real economy, between New York and Cleveland, and between the Haves and the Have-nots.
All this and more was discussed on the last Bill Moyer's Journal. Simon Johnson, of MIT and Baseline Scenario, also offers his perspective.
Thursday, October 8, 2009
Corporate Communism *
Dylan Ratigan coins an appropriate term to describe our current political economy - *corporate communism. [Courtesy of Crooks and Liars]
Republican Amnesia
From Crooks and Liars: Paul Ryan spouts his usual lies and smears, I mean, Republican talking-points regarding health care. Barney Frank wonders why the Republicans didn't do anything about, or even mention, health care over the last 12 years when they controlled Congress.
Tuesday, October 6, 2009
Thugs
Union members are often referred to as "thugs." When you stand up for living wages, retirement and health care benefits, and worker rights, you're a thug, at least according to pro-business, market-hypnotized know-nothings.
At Serb Hall, Citizens for Responsible Government (actually a front group for the right-wing, uber-wealthy talking points) organized a gathering regarding Scott Walker's county budget. One of CRGs representatives, or sympathizers, pushed a pro-union woman and then grabbed a man and threw him down. Evidently because they disagreed with him.
I think we know whom the real thugs are in this class war.
Knuckleheads
I see knuckleheads at the County budget/contact rallies complaining, "No more taxes!" (While also acting like thugs.)
FYI: Taxes as a share of income have been falling in Wisconsin. And, Wisconsin business taxes are below average.
So, if taxes are your supposed beef...then you've got none. Move along.
For Further Reading:
Tax Cuts: Myths and Realities
Corporate Taxation
FYI: Taxes as a share of income have been falling in Wisconsin. And, Wisconsin business taxes are below average.
So, if taxes are your supposed beef...then you've got none. Move along.
For Further Reading:
Tax Cuts: Myths and Realities
Corporate Taxation
Sunday, October 4, 2009
More Unbiased Reporting
In more stellar reporting, the Milwaukee Journal Sentinel, reporting on the upcoming gubernatorial race, refers to the Wisconsin Policy Research Institute as a "local think tank." Ed Garvey, at Fighting Bob, has more on how laughable this is.
Saturday, October 3, 2009
Journalistic Poverty
The Milwaukee Journal Sentinel reported on the latest American Community Survey findings that Milwaukee is the 11th poorest city in the nation. It is good to bring attention to such discrepancies, but as I've said over and over here, the correct and complete context of what's being represented is crucial.
The Wisconsin poverty rate ranks 39th, the 12th best (including D.C.) in the nation. The County's poverty rate was 11.8 percent, with an unemployment rate of 5.5 percent in 2008.
This tells us that we've basically segregated the majority of our poor people in Milwaukee. Which puts a disproportionate budget burden on the City to provide services for the poor. And, this is the real problem. Milwaukee is the de facto dumping ground for those needing public services (health, shelter, police, food, etc.), and the City is left to find the resources to pay this bill.
This situation, in turn, obviously inflates the unemployment rate (among other negative indicators) for the City. But, poverty and unemployment are not just city concerns, they are state and national issues.
The article could have been a spring board to discussion about regionalism, affordable housing, jobs programs, and a whole host of ideas of how to better cope with poverty and unemployment, with some type of shared response.
For Further Reading:
Getting The Facts Right About Segregation
Quantifying Milwaukee's Segregation
The Wisconsin poverty rate ranks 39th, the 12th best (including D.C.) in the nation. The County's poverty rate was 11.8 percent, with an unemployment rate of 5.5 percent in 2008.
This tells us that we've basically segregated the majority of our poor people in Milwaukee. Which puts a disproportionate budget burden on the City to provide services for the poor. And, this is the real problem. Milwaukee is the de facto dumping ground for those needing public services (health, shelter, police, food, etc.), and the City is left to find the resources to pay this bill.
This situation, in turn, obviously inflates the unemployment rate (among other negative indicators) for the City. But, poverty and unemployment are not just city concerns, they are state and national issues.
The article could have been a spring board to discussion about regionalism, affordable housing, jobs programs, and a whole host of ideas of how to better cope with poverty and unemployment, with some type of shared response.
For Further Reading:
Getting The Facts Right About Segregation
Quantifying Milwaukee's Segregation
Number of Unemployed Per Job Opening
A couple of illustrations, here and here, as to why a public works program would help.
For Further Reading:
Lessons From The New Deal Employment Programs
For Further Reading:
Lessons From The New Deal Employment Programs
Consumption Is The Issue
George Monbiot has an interesting article dispelling the myth that population growth is the most serious threat to the environment.
Friday, October 2, 2009
Health Care Hitmen
Still On Track
Even though Chicago didn't get the 2016 Olympics, I hope the Madison-Milwaukee-Chicago rail project is still undertaken.
And, why were the Republicans rooting against and cheering after America did not get the Olympics?
Update:
Midwest Transportation Revolution
Milwaukee-Madison Rail Route Still On Track Despite Olympic Vote
Olympics, Scandal, Bribery and Glenn Beck's Church
Wisconsin Submits Application For High-Speed Rail
And, why were the Republicans rooting against and cheering after America did not get the Olympics?
Update:
Midwest Transportation Revolution
Milwaukee-Madison Rail Route Still On Track Despite Olympic Vote
Olympics, Scandal, Bribery and Glenn Beck's Church
Wisconsin Submits Application For High-Speed Rail
Union Yes
Some, in arguing against unions, maintain that increasing union wages can only increase cost in the end because the companies paying higher wages will just pass on the cost. This opinion completely disregards the fact that maybe the executives and managers are overpaid. An equivalent decrease in executive pay alongside an increase in worker pay would therefore lead to no additional costs to the consumer. This is not hard to achieve since executives are making over 300 times as much as their workers.
Or are those arguing against better pay for workers merely unwilling to see management take home less? Is it that under no circumstances must executives receive less compensation, only workers must sacrifice? Executives can have golden parachutes, secure retirements, paid country club memberships, use of the company jet, and perks as far as the eye can see in perpetuity. But the workers are at fault for budgetary issues? The workers must sacrifice and go without? The $12 an-hour they are making is too much?
Second, I've see some defending corporations regarding the money they are making. Paraphrasing, "Not all received bailout money. So leave them alone." But as I've described in many previous posts, all, especially large corporations, do receive many forms of public largess. And, it has also been shown that public workers often would have cost less to complete a project rather than the contracted private company.
Third, unions don't "price themselves out of a market." Federal and state policies (influenced with corporate cash) eviscerate unions by making them compete with third world slave labor. We’ve allowed a regression to take place. We're watching all the struggles the labor movement fought for over the last two centuries go down the drain. As we use jargon like "globalization," "competition," and "efficiencies" to gloss over the fact that our government, complicit with multinational corporations, has allowed workers the world over to be exploited in pursuit of the profit for a select few. They are not pricing themselves out of anything. The money that workers were previously earning is now being siphoned off by executives and CEOs. As productivity of the American worker has increased, they have not seen a correlated increase in their pay. Yet, executive compensation has skyrocketed.
Efficient markets, the private sector, supply-side economics are all dead. The emperors have no clothes.
Or are those arguing against better pay for workers merely unwilling to see management take home less? Is it that under no circumstances must executives receive less compensation, only workers must sacrifice? Executives can have golden parachutes, secure retirements, paid country club memberships, use of the company jet, and perks as far as the eye can see in perpetuity. But the workers are at fault for budgetary issues? The workers must sacrifice and go without? The $12 an-hour they are making is too much?
Second, I've see some defending corporations regarding the money they are making. Paraphrasing, "Not all received bailout money. So leave them alone." But as I've described in many previous posts, all, especially large corporations, do receive many forms of public largess. And, it has also been shown that public workers often would have cost less to complete a project rather than the contracted private company.
Third, unions don't "price themselves out of a market." Federal and state policies (influenced with corporate cash) eviscerate unions by making them compete with third world slave labor. We’ve allowed a regression to take place. We're watching all the struggles the labor movement fought for over the last two centuries go down the drain. As we use jargon like "globalization," "competition," and "efficiencies" to gloss over the fact that our government, complicit with multinational corporations, has allowed workers the world over to be exploited in pursuit of the profit for a select few. They are not pricing themselves out of anything. The money that workers were previously earning is now being siphoned off by executives and CEOs. As productivity of the American worker has increased, they have not seen a correlated increase in their pay. Yet, executive compensation has skyrocketed.
Efficient markets, the private sector, supply-side economics are all dead. The emperors have no clothes.
Wednesday, September 30, 2009
Health Care Reality
Some great videos concerning health care (courtesy of Crooks and Liars):
Grayson fires back at Republicans
Republicans pretending to be champions of Medicare
Props to Jay Rock
Plus, Monique Morrissey's Medicare Privatization: A Cautionary Tale
Grayson fires back at Republicans
Republicans pretending to be champions of Medicare
Props to Jay Rock
Plus, Monique Morrissey's Medicare Privatization: A Cautionary Tale
Levity
Some midweek humor from Jon Stewart & Stephen Colbert:
Where The Riled Things Are government is bad, how dare they build infrastructure and try to prevent ecosystems from collapsing
America: Target America brainwashing children by helping them believe in themselves
Out of The Closet politicians real constituents: lobbyists
Blackwashing criticizing Obama isn't racist, it's patriotic
Where The Riled Things Are government is bad, how dare they build infrastructure and try to prevent ecosystems from collapsing
America: Target America brainwashing children by helping them believe in themselves
Out of The Closet politicians real constituents: lobbyists
Blackwashing criticizing Obama isn't racist, it's patriotic
Tuesday, September 29, 2009
Desert Death
This is the epitome of Pollyanna planning. Arizona (for the most part) is a terrible experiment in unsustainable development. (The bright idea of trying to live a green lifestyle in a desert.) The plan is to add 400 more miles of highways by 2050. Why? Because of projected growth. We need federal policy to institute growth boundaries to eliminate any more irresponsible planning.
A Public Plan
The Milwaukee Journal Sentinel is rambling on about Scott Walker again, Walker economic development plan could find backers. Par for the course, context and criticism are absent.
A few thoughts ran through my mind thinking about this article and some of its broader implications:
Developing a county Office of Business Development? Really? Come on, guys. We can actually do some bold, innovative things in economic development. This is duplicative and more parochialism in the supposed age of regionalism.
And why the county won't turn over the Park East land to the city is vexing, to say the least.
A quick solution is to turn over county functions to city management. Not only would this transfer and make better use of institutional knowledge, it would achieve a quasi-regionalism with the City of Milwaukee representing the whole county. [I know...good luck with that one.]
Any work that is contracted out should be contracted to local firms, paying a prevailing wage, with a community benefits agreements, and with specific clawbacks in the contract.
Infrastructure - water, roads, garbage, etc. - should be handled by public workers: unionized, well-paid workers. First, the public sector acts as a safety cushion. During economic recessions they still spend - using restaurants, movie theaters, concerts, buying appliances, doing remodeling, etc. - enabling businesses to stay open and workers to keep their jobs. Establishing, at least, a respectable floor during downturns. Second, they maintain the roads, water ways, sewers, airport, and on and on, that we all - businesses and individuals - count on for nearly everything we are able to do in our daily lives. This is kind of an important function for a civilized society. Not something to be privately controlled by the best-connected bidder.
We as citizens and taxpayers should, through our investment (taxes), be building/exporting a model that gives individuals a step up. People attack public employees because they have health care or because they have a pension. Are these not assets that any worker should want? How does criticizing and thereby disintegrating such achievement of labor help anyone? The more bargaining power one group of workers gains (and thereby increased wages), the more every worker is able to achieve better pay.
Why is it that taxpayers criticize public worker earnings, yet they defend CEO compensation? The same CEOs that are subsidized and bailed out with our tax dollars. Public workers actually perform a service for you. What did AIG do for you?
How is it that just 30 years ago our society had:
A few thoughts ran through my mind thinking about this article and some of its broader implications:
Developing a county Office of Business Development? Really? Come on, guys. We can actually do some bold, innovative things in economic development. This is duplicative and more parochialism in the supposed age of regionalism.
And why the county won't turn over the Park East land to the city is vexing, to say the least.
A quick solution is to turn over county functions to city management. Not only would this transfer and make better use of institutional knowledge, it would achieve a quasi-regionalism with the City of Milwaukee representing the whole county. [I know...good luck with that one.]
Any work that is contracted out should be contracted to local firms, paying a prevailing wage, with a community benefits agreements, and with specific clawbacks in the contract.
Infrastructure - water, roads, garbage, etc. - should be handled by public workers: unionized, well-paid workers. First, the public sector acts as a safety cushion. During economic recessions they still spend - using restaurants, movie theaters, concerts, buying appliances, doing remodeling, etc. - enabling businesses to stay open and workers to keep their jobs. Establishing, at least, a respectable floor during downturns. Second, they maintain the roads, water ways, sewers, airport, and on and on, that we all - businesses and individuals - count on for nearly everything we are able to do in our daily lives. This is kind of an important function for a civilized society. Not something to be privately controlled by the best-connected bidder.
We as citizens and taxpayers should, through our investment (taxes), be building/exporting a model that gives individuals a step up. People attack public employees because they have health care or because they have a pension. Are these not assets that any worker should want? How does criticizing and thereby disintegrating such achievement of labor help anyone? The more bargaining power one group of workers gains (and thereby increased wages), the more every worker is able to achieve better pay.
Why is it that taxpayers criticize public worker earnings, yet they defend CEO compensation? The same CEOs that are subsidized and bailed out with our tax dollars. Public workers actually perform a service for you. What did AIG do for you?
How is it that just 30 years ago our society had:
- one breadwinner supporting a household
- wages that allowed families to be (realistic) homeowners
- a secure retirement
- health insurance with a close relationship between doctor and patient
United States of Shanty Towns
I guess this is the health reform we can look forward to - waiting in lines, at large improvised tents, for medical attention.
Sunday, September 27, 2009
More Hidden Costs
Great information from Good Jobs First about hidden taxpayer costs (excerpt below):
Wisconsin
In June 2007 the state Department of Health and Family Services posted an updated list of Wisconsin employers with the largest number of employees (or their dependents) participating in BadgerCare, the state's health insurance program for low-income working families. At the top of the list was Wal-Mart, which had 897 employees enrolled, plus an additional 776 dependents. The Department projected the annual cost to the state of those enrollees at $3.7 million. Other employers at the top of the list were McDonald's (248 employees; 149 dependents), the non-profit healthcare provider Aurora (193; 162), and home improvement chain Menard (163; 184). The 116 employers with 15 or more employees on BadgerCare were said to cost the state a total of $23.9 million a year.
In October 2005 Wisconsin Citizen Action published a report estimating that large corporations, led by Wal-Mart, were costing the state $46 million a year because of the participation of their employees in public medical assistance programs.
Sources: The Department of Health and Family Services list is posted at http://dhfs.wisconsin.gov/badgercare/pdfs/employers0307.pdf. See also Stacy Forster, "Who Has Staff using Health Care Safety Net?" Milwaukee Journal Sentinel, June 21, 2007. For coverage of earlier reports, see Stacy Forster, "Big Companies Fill BadgerCare Rolls," Milwaukee Journal Sentinel, May 24, 2005; Anita Weier, "Wal-Mart Workers Need State Health Aid," The Capital Times , November 4, 2004, p.1A; Stacy Forster, "Tab for Uninsured Workers Rises 13%," Milwaukee Journal Sentinel, June 30, 2006.Faulty Foundation
Privatize This
Give me a break! But I guess I shouldn't be surprised that the Journal Sentinel thinks the idea of privatizing the Milwaukee Zoo needs further study. They support virtually all privatization, taxpayer subsidies for private projects, and general boondoggles pushed by development and budgetary hucksters.
Even though the Journal Sentinel actually researched the privatization issue and found that Wisconsin transportation contracts would have been cheaper in 125 out of 214 cases if the work would have been done by state employees rather than a private contractor.
But so much for reality. The market mystique cannot be questioned. Privatization of everything or bust!
Even though the Journal Sentinel actually researched the privatization issue and found that Wisconsin transportation contracts would have been cheaper in 125 out of 214 cases if the work would have been done by state employees rather than a private contractor.
But so much for reality. The market mystique cannot be questioned. Privatization of everything or bust!
Saturday, September 26, 2009
Uneducated
Note to Hannity: Schools do not exist to merely regurgitate the opinions (or in your case, ignorance) and world views of the parents. Sean implies he wants Democrat and Republican, blue and red, schools. Is there any topic the right-wing will not politicize in an attempt at taking total control for their own sake rather than the sake of the topic or institution? Education, health care, and others, have become highly-partisan political struggles rather than a natural right of citizens.
The Boogeyman
Rachel Maddow reports the truth behind the racism/class warfare of the ACORN attacks. Not really a big surprise. More of the typical fodder we're lobbed by the MSM. The poor, the working class, immigrants, minorities, homosexuals, community advocates, they're all conspiratorial, trying to hurt and takeover America. Be afraid!
Master Bureaucrat: The Financial Sector
"Bureaucrat" stirs thoughts of a unproductive slacker, needlessly pushing papers in make-work employment.
This definition led me to think about how perfectly the financial sector fits this mold.
They produce nor create anything of value. Their job is to basically rearrange the chairs and call it work, while taking their cut. And what a mind-boggling cut it is.
Compare this to what we typically conjure when we spew "bureaucrat," the average public sector, government employee - one that fights fires, polices the streets, provides clean water, educates - making far less than their financial sector counterparts. They also seem to face much more scorn from the press and right-wing politicians as costly budgetary constraints.
So, sadly, the group (government public sector) that produces numerous "goods" for citizens at a relatively modest cost must be reigned in.
Yet, the largely unproductive and inefficient sector (finance) that costs an extravagant amount must continue to receive support; continue to be referred to as "the only way;" and continue to be given loopholes, tax breaks, exemptions, and giveaways.
This definition led me to think about how perfectly the financial sector fits this mold.
They produce nor create anything of value. Their job is to basically rearrange the chairs and call it work, while taking their cut. And what a mind-boggling cut it is.
Compare this to what we typically conjure when we spew "bureaucrat," the average public sector, government employee - one that fights fires, polices the streets, provides clean water, educates - making far less than their financial sector counterparts. They also seem to face much more scorn from the press and right-wing politicians as costly budgetary constraints.
So, sadly, the group (government public sector) that produces numerous "goods" for citizens at a relatively modest cost must be reigned in.
Yet, the largely unproductive and inefficient sector (finance) that costs an extravagant amount must continue to receive support; continue to be referred to as "the only way;" and continue to be given loopholes, tax breaks, exemptions, and giveaways.
American Socialism
The incentives, giveaways, and hand-outs of taxpayer dollars to the wealthiest are plenty. That is, we have a system whereby those whom need the least assistance have the most potential to avoid taxation, yet, at the same time, are offered the most opportunities to reap benefits from the system. This has led to an overall regressive tax system.
The tools are:
And these are only a few of the tools used to fleece unsuspecting taxpayers against their own best interests.
For Further Reading:
Carrying Burden For Super Rich
No Tax on the $845 Million Sale of the Cubs
Selling Our Soul To The Company Store
Michael Moore eviscerates capitalism in his new film, Capitalism: A Love Story. He finds it to be unworkable, evil, and needing replacement with true democracy. Now although there may be persuasive kernels of truth in Moore’s vision, I’m not inclined to go quite as far. I tend to fall more into the Robert Kuttner camp, whose ideas are presented in his book The Squandering of America. In which he describes a mixed economy – basically a regulated capitalist economy with progressive taxation (think our post-WWII economy up until the late 1960s). Although either vision would likely get us closer to the standard-of-living we covet rather than the present dog-eat-dog, increasing inequality paradigm within which we operate.
One-sixth of our economy is represented by sickness – the health care industry. The financial services industry (which as we recently witnessed, adds nothing of value) represents 20 percent of GDP. Over 13 percent of the population lives in poverty. 50 million have no health insurance coverage. In indicator after indicator, and study after study, the U.S. trails in outcomes and performance. The only categories we still lead in are delusion and boastfulness.
Maybe it’s time we actually reregulate – the banks, the polluters, Wall Street, corporations, etc. Let’s increase taxes on the wealthiest. It’s time to get rid of 401(K)s and bring back quality pensions. The solution to health care: Medicare for all. The answer to unemployment, job training, and our crumbling infrastructure: public works programs.
Yes, there is definitely a large cost to such an expansive initiative. But that’s what an investment is, it makes everyone better off in the long-run. Rather than just benefiting a select, wealthy, few right now. The kind of investment that “spreads the wealth,” builds/maintains transportation networks, provides clean air and water, in essence, the tools and techniques that enable a civilized society.
Demand as Economic Engine
If you build it, there is no guarantee anyone is coming. We’ve been sold a false fable whereby low taxes (which primarily favor the uber wealthy) enable our social betters - The Ruling Class - to make wise investments which will either create more market liquidity or produce much sought-after services. Which is true, if you think $12 trillion in bubble wealth is actual liquidity, or if by sough-after services one means convenience, impulse items.
We are a fast food nation, addicted to debt, over burdened with things, and being led astray by those whom could care less about our health, retirement, wages, and quality-of-life. The capitalists have put a giant wheel in each of our cages and told us if we run fast enough we can be like them. In reality, we just need to get off the wheel.
As Abraham Lincoln's quote (the subtitle of this blog) explains, Labor is the engine, not capital. One can produce and produce, unless someone actually wants or needs the service or product its useless. Valuing Labor and utilizing its skills and knowledge to make things desired and necessary is a sustainable and less volatile path. We, as workers in a supposedly representative democracy, should be exporting our step-up model (living wage, health care, pension) rather than allowing corporation to slowly drag everyone down to below subsistence wages.
Privatizing Away Equity
Privatization is not the end-all, be-all its boosters have claimed. In fact, numerous studies have shown privatization of public services usually ends up costing more. Not only does it cost more, the money now spent does not support living wages, quality health care, or a decent pension plan. Now that the service has been privatized, the workers’ are ravaged. This is part of the process of what academics have called the race to the bottom.
The race to the bottom is the continual search for cheaper inputs in the production process. And crushing Labor (wages, health, retirement) is at the top of the list. The primary flaw in the privatization schemes we’ve been peddled over the last few decades (coincidentally alongside Reaganomics) is that the savings never appear. There is merely a realignment of monies from worker to management. The CEOs and executives of the new private ownership make out like kings, while the workforce of this service provider is suddenly making essentially minimum wage.
Moving Forward
Obama stormed into office promising change. Change is exactly what we need. But based on the development over the last eight months, change may not be on the way. Health care is still overly controlled by insurance and pharmaceutical companies. Our economic policy is still enraptured with deregulation, the supply-side, and the status quo. Our environmental degradation and sprawling lifestyle has yet to even enter a meaningful realm of debate.
Here's hoping the threat of the 2010 election inspires Democrats to relocate their spines and do what is right for America and its workers, ignoring the typically destructive policies the conservatives continue to claim will (eventually) work despite the evidence.
For Further Reading:
Nike Is Leading Race to the Bottom
Understanding and Preventing Privatization
Friday, September 25, 2009
School Squabbles
Tom Barrett will be running for governor in 2010. Alderman Tony Zielinski will be simultaneously running for lieutenant governor. If they're both elected, there will be no love lost in that working relationship.
Thursday, September 24, 2009
Turbulent Times
These are turbulent times. But things are getting out of hand. Those in the public-eye (we all know who they are) inciting this anger, distrust of government, inevitable "socialist" takeover, and general anti-social extremism need to take a good look in the mirror.
Wednesday, September 23, 2009
Protecting the Status Quo
When the Kings of Finance come together to plot world domination the police state rolls out in full force. Budgets are never too pinched to allow 50 police officers from Milwaukee to be sent to Pittsburgh for security purposes at a G 20 event.
Perhaps we should open our ears to the protesters. We’re in the Great Recession, unions are being busted daily, unemployment is rising, and more and more are going without health insurance. But nonetheless, a battalion of security must maintain order as the status quo concocts their global economic schemes.
Dan Bice, of the Journal Sentinel (always a tool of the status quo), favors sending the officers to Pittsburgh. No, there’s no real thought offered as to why this should be. No contextual reasoning established as to why Milwaukee needs to do this. It just should.
We’ve got money for this? We always find more money for The Haves.
The police have nothing better to do right here in Milwaukee?
Update:
Dave commented that Pittsburgh is paying for this excursion. But that still doesn't explain why Milwaukee must send 50 officers to Pittsburgh. Nor does it make sense that Pittsburgh is footing the bill for this summit. Pittsburgh like many cities across the country is furloughing and laying off workers, and seeking pay freezes from those that remain. Again, money is available to support the playgrounds and adventures of the well-connected, while everyone else must sacrifice.
Updated update:
I have now been informed the G 20 is "kind of a big event" and is also being partially picked up by the Federal government. Again, the tab, the cost, of this event is only part of the problem with summits such as this one of the G 20. And, it's considered a big event because those holding it tell us they are very important and doing very important work. The G 20 exists to basically crack open "emerging" markets. Allowing wage suppression (by finding new, cheaper labor) and the introduction of new bodies to the hyper-consumptive lifestyle.
The G 20 and groups like them are part of the reason the world economy has crashed. They've maintained policy control and voice by a select few. (With the orders being primarily given by the G 7.) Sadly, relatively few whom have caused this crisis have faced any consequences. So, as long as the same old financiers, bankers, business leaders, and privileged government officials continue to sell the same old snake-oil that blew up the world economy there will be plenty of us whom will continue to call them out on their lopsided policies and media-criticism immunity.
It's not merely that this organization exists, they are holding a summit, and there are costs involved. It's that the mission and outcomes of this organization don't represent those most in need, nor their, broader, "worker" constituency. Hence my original comments about the police having better things to do here at home, my critique that nothing about the G 20 was placed in any context in the original article - explaining who they are, what their mission is, what they've accomplished, or any criticisms of the group. For people in Milwaukee to have an opinion and to decide whether it's good for the police to be allowed to go there, they should have some background information presented to them about what's actually going on there. More of a discussion of what (the event) the police are being asked to secure, rather than just an exercise in the best use of police time.
OK. That's my last on the G 20. They exist, the summit will go on, and the world will go on. I'd just like to see more time and money be directed to actual initiatives and programs that directly benefit workers and the needy around the globe. Rather than those, like the G 20, that just use that idea as a beard, continuing to follow the flawed trickle-down model, where we continue to give breaks and bonuses to the rich, with the hope that it will reach everyone else.
For Further Reading:
Attac France on the Stiglitz Report
Casino Capitalism As Usual
Stimulate or Die
Perhaps we should open our ears to the protesters. We’re in the Great Recession, unions are being busted daily, unemployment is rising, and more and more are going without health insurance. But nonetheless, a battalion of security must maintain order as the status quo concocts their global economic schemes.
Dan Bice, of the Journal Sentinel (always a tool of the status quo), favors sending the officers to Pittsburgh. No, there’s no real thought offered as to why this should be. No contextual reasoning established as to why Milwaukee needs to do this. It just should.
We’ve got money for this? We always find more money for The Haves.
The police have nothing better to do right here in Milwaukee?
Update:
Dave commented that Pittsburgh is paying for this excursion. But that still doesn't explain why Milwaukee must send 50 officers to Pittsburgh. Nor does it make sense that Pittsburgh is footing the bill for this summit. Pittsburgh like many cities across the country is furloughing and laying off workers, and seeking pay freezes from those that remain. Again, money is available to support the playgrounds and adventures of the well-connected, while everyone else must sacrifice.
Updated update:
I have now been informed the G 20 is "kind of a big event" and is also being partially picked up by the Federal government. Again, the tab, the cost, of this event is only part of the problem with summits such as this one of the G 20. And, it's considered a big event because those holding it tell us they are very important and doing very important work. The G 20 exists to basically crack open "emerging" markets. Allowing wage suppression (by finding new, cheaper labor) and the introduction of new bodies to the hyper-consumptive lifestyle.
The G 20 and groups like them are part of the reason the world economy has crashed. They've maintained policy control and voice by a select few. (With the orders being primarily given by the G 7.) Sadly, relatively few whom have caused this crisis have faced any consequences. So, as long as the same old financiers, bankers, business leaders, and privileged government officials continue to sell the same old snake-oil that blew up the world economy there will be plenty of us whom will continue to call them out on their lopsided policies and media-criticism immunity.
It's not merely that this organization exists, they are holding a summit, and there are costs involved. It's that the mission and outcomes of this organization don't represent those most in need, nor their, broader, "worker" constituency. Hence my original comments about the police having better things to do here at home, my critique that nothing about the G 20 was placed in any context in the original article - explaining who they are, what their mission is, what they've accomplished, or any criticisms of the group. For people in Milwaukee to have an opinion and to decide whether it's good for the police to be allowed to go there, they should have some background information presented to them about what's actually going on there. More of a discussion of what (the event) the police are being asked to secure, rather than just an exercise in the best use of police time.
OK. That's my last on the G 20. They exist, the summit will go on, and the world will go on. I'd just like to see more time and money be directed to actual initiatives and programs that directly benefit workers and the needy around the globe. Rather than those, like the G 20, that just use that idea as a beard, continuing to follow the flawed trickle-down model, where we continue to give breaks and bonuses to the rich, with the hope that it will reach everyone else.
For Further Reading:
Attac France on the Stiglitz Report
Casino Capitalism As Usual
Stimulate or Die
Sunday, September 20, 2009
Yet Another Bubble
There is another bubble on the horizon, ready to burst, which is going to slow the economic recovery and dampen growth momentum.
For Further Reading:
Commercial Mortgage Defaults Seen Rising
Commercial Real Estate Bubble Looms
Commercial Real Estate Bubble Set To Burst
Commercial Real Estate May Be the Next Bubble To Burst
Double Bubble Trouble
The CRE Bust: Quick Overview
The Other Real Estate Bubble
For Further Reading:
Commercial Mortgage Defaults Seen Rising
Commercial Real Estate Bubble Looms
Commercial Real Estate Bubble Set To Burst
Commercial Real Estate May Be the Next Bubble To Burst
Double Bubble Trouble
The CRE Bust: Quick Overview
The Other Real Estate Bubble
Saturday, September 19, 2009
Environment Update
Debt Burden Perspective
Welcome To Walmart
The Journal Sentinel weighed in on the latest union-related negotiation (between the City and AFSCME) taking place, Ratify This Deal.
They claim, "it's a good deal for the city and the union." I assume they mean that by simply allowing the unionized workers to keep their jobs, that's a good deal. So much for the city being a standard, a model, for the private sector. Much like the private sector, all workers are expendable and should be happy with whatever crumbs are thrown their way. Yet we're also supposed to be the most innovative, educated and skilled nation on the planet. We just shouldn't be paid like we are or share in the rewards.
The Journal editorial also states that the union agreeing to concessions in this latest deal is, "a welcome recognition of reality by the union."
And that reality would be that the City would rather use taxpayer dollars on speculative deals, funding private developers who don't want to pay a living wage to workers on their projects. But, somehow, this subsidized race to the bottom, using public dollars, building projects with less-than prevailing wages, will lift all boats.
As public entities have become more involved in financing private ventures we've heard more and more over the years about the magic of the market, the wonders of privatization and private entities, and how a rising tide will result and bring prosperity to one and all.
Cities and states have plenty of taxpayer dollars for stadiums, parking structures, site remediation, and anything else private developers desire. But there is never money for transit, libraries, parks, road repair, or other infrastructural needs. Although, in the convoluted economic development logic of today; public dollars for private pursuits; privatization over public employment; and speculative, race to the bottom policies will result in a market-oriented wonderland...regardless of the fact that empirical data - reality- totally refutes this delusional view.
Our tax dollars can bail out banks and insurance companies, so they can pay millions in bonuses to the same individuals that brought down the world economy. Yet public or private unionized workers wanting their pay to merely keep up with inflation are budget-breakers.
As unionization has decreased, and as public dollars are used more and more to finance private speculation, we have seen workers wages decline, job security evaporate, health care costs skyrocket and coverage lost for many employees, retirement degraded into a defined contribution rather than defined benefit plan, and the ability of Americans to have lives unencumbered by debt becoming a false hope.
So as more unionized workers are given the "deal" of higher health care costs, lower/frozen wages, and less-secure retirements, non-unionized workers will feel these effects even more so. It seems that we, as a nation of workers, will only be able to fully grasp the decline in Labor's bargaining power and importance on our standard of living once we're all Walmart workers.
We should stop and reflect on the 40-hour work week, laws against child labor, unemployment insurance, the civil rights movement, Social Security, Medicare, OSHA, the EEOC, and a relaxing thing called the weekend. All of these are results of labor unions and their activism.
If we keep up this degradation of Labor, this lack of respect for actual work and doing/making something of value (as opposed to simply extracting money from the real economy through financialization), we will all need to get used to three words, "Welcome to Walmart."
For Further Reading:
Financialization
Milwaukee Department of City Development Business Toolbox
Milwaukee Economic Development Corporation
Private Sector Accountability
They claim, "it's a good deal for the city and the union." I assume they mean that by simply allowing the unionized workers to keep their jobs, that's a good deal. So much for the city being a standard, a model, for the private sector. Much like the private sector, all workers are expendable and should be happy with whatever crumbs are thrown their way. Yet we're also supposed to be the most innovative, educated and skilled nation on the planet. We just shouldn't be paid like we are or share in the rewards.
The Journal editorial also states that the union agreeing to concessions in this latest deal is, "a welcome recognition of reality by the union."
And that reality would be that the City would rather use taxpayer dollars on speculative deals, funding private developers who don't want to pay a living wage to workers on their projects. But, somehow, this subsidized race to the bottom, using public dollars, building projects with less-than prevailing wages, will lift all boats.
As public entities have become more involved in financing private ventures we've heard more and more over the years about the magic of the market, the wonders of privatization and private entities, and how a rising tide will result and bring prosperity to one and all.
Cities and states have plenty of taxpayer dollars for stadiums, parking structures, site remediation, and anything else private developers desire. But there is never money for transit, libraries, parks, road repair, or other infrastructural needs. Although, in the convoluted economic development logic of today; public dollars for private pursuits; privatization over public employment; and speculative, race to the bottom policies will result in a market-oriented wonderland...regardless of the fact that empirical data - reality- totally refutes this delusional view.
Our tax dollars can bail out banks and insurance companies, so they can pay millions in bonuses to the same individuals that brought down the world economy. Yet public or private unionized workers wanting their pay to merely keep up with inflation are budget-breakers.
As unionization has decreased, and as public dollars are used more and more to finance private speculation, we have seen workers wages decline, job security evaporate, health care costs skyrocket and coverage lost for many employees, retirement degraded into a defined contribution rather than defined benefit plan, and the ability of Americans to have lives unencumbered by debt becoming a false hope.
So as more unionized workers are given the "deal" of higher health care costs, lower/frozen wages, and less-secure retirements, non-unionized workers will feel these effects even more so. It seems that we, as a nation of workers, will only be able to fully grasp the decline in Labor's bargaining power and importance on our standard of living once we're all Walmart workers.
We should stop and reflect on the 40-hour work week, laws against child labor, unemployment insurance, the civil rights movement, Social Security, Medicare, OSHA, the EEOC, and a relaxing thing called the weekend. All of these are results of labor unions and their activism.
If we keep up this degradation of Labor, this lack of respect for actual work and doing/making something of value (as opposed to simply extracting money from the real economy through financialization), we will all need to get used to three words, "Welcome to Walmart."
For Further Reading:
Financialization
Milwaukee Department of City Development Business Toolbox
Milwaukee Economic Development Corporation
Private Sector Accountability
Monday, September 14, 2009
Medical Cost Trojan Horse
Many right-wingers are calling for tort reform as a means of achieving medical cost savings.
Not that tort reform will actually save money, but it will protect the corporate titans from lawsuits based on their own sloppiness and neglect.
Litigation costs and malpractice insurance are 1 to 1.5 percent of total medical costs.
For Further Reading:
The Medical Malpractice Myth
The Medical Malpractice Myth
Tort Reform Unlikely To Cut Costs
Not that tort reform will actually save money, but it will protect the corporate titans from lawsuits based on their own sloppiness and neglect.
Litigation costs and malpractice insurance are 1 to 1.5 percent of total medical costs.
For Further Reading:
The Medical Malpractice Myth
The Medical Malpractice Myth
Tort Reform Unlikely To Cut Costs
The Shady City
Chicago, another city with supposed budgetary issues, has offered a $25 million tax increment finance subsidy to United Airlines.
Another example of taxpayer dollars supporting private interests at the expense of the public.
Update:
Chicago Cuts Checks to Corporations, Not Schools Lacking Teachers
Another example of taxpayer dollars supporting private interests at the expense of the public.
Update:
Chicago Cuts Checks to Corporations, Not Schools Lacking Teachers
Development Gone Astray
Oak Creek may form two tax incremental finance (TIF) districts to spur development.
TIFs were initially created with the intent of rescuing blighted areas.
The areas being considered in Oak Creek for the TIF districts are - 13th & College and Howell & Oakwood – hardly blighted areas.
As I wrote in a previous post, “Another much touted, yet becoming ever more so destructive, policy tool is tax incremental financing (TIF). These were initially established to bring investment to blighted, low-income areas. But nowadays, more states are loosening their eligibility requirements and allowing affluent areas to reap the benefits. TIFs allow a municipality to issue a bond to pay for part of the costs of the new development. The property tax revenue generated by the development is then used to pay off the bonds. Some municipalities also allow sales tax increments, where the sales tax generated by the new development can be diverted to redevelopment costs.”
In essence, using taxpayer money (cheap credit from a municipality) to finance speculative development where the rewards benefit the usual cast of characters at the expense of the community at large.
For Further Reading:
TIFs, Greenfields, and Sprawl
Subsidizing Sprawl, Subsidizing Walmart
Straying From Good Intentions
Shifting The Burden
Recession Shriveling TIF Revenue Returns
Property Tax Abatements and Your School
Legislation Introduced to Help Troubled TIFs
TIFs were initially created with the intent of rescuing blighted areas.
The areas being considered in Oak Creek for the TIF districts are - 13th & College and Howell & Oakwood – hardly blighted areas.
As I wrote in a previous post, “Another much touted, yet becoming ever more so destructive, policy tool is tax incremental financing (TIF). These were initially established to bring investment to blighted, low-income areas. But nowadays, more states are loosening their eligibility requirements and allowing affluent areas to reap the benefits. TIFs allow a municipality to issue a bond to pay for part of the costs of the new development. The property tax revenue generated by the development is then used to pay off the bonds. Some municipalities also allow sales tax increments, where the sales tax generated by the new development can be diverted to redevelopment costs.”
In essence, using taxpayer money (cheap credit from a municipality) to finance speculative development where the rewards benefit the usual cast of characters at the expense of the community at large.
For Further Reading:
TIFs, Greenfields, and Sprawl
Subsidizing Sprawl, Subsidizing Walmart
Straying From Good Intentions
Shifting The Burden
Recession Shriveling TIF Revenue Returns
Property Tax Abatements and Your School
Legislation Introduced to Help Troubled TIFs
Sunday, September 13, 2009
Cautious Optimism
Yes To Inflation
Chris Hayes has an interesting report explaining why inflation would actually be good for reducing our debt and for the economy in general.
For Further Reading:
Monetized Government Spending Instead of Elimination of Toxic Assets Can Solve Current Economic Problems
For Further Reading:
Monetized Government Spending Instead of Elimination of Toxic Assets Can Solve Current Economic Problems
Meaningful Indicators
Joesph Stiglitz - Nobel Prize winner, Columbia economics professor, and chairman of the Commission on the Measurement of Economic Performance and Social Progress - elaborates on the need for more useful and explanatory "statistical information about the economy and society."
The Commission was established by French President Nicolas Sarkozy due to his dissatisfaction with our current indicators.
Their first report will be released September 14.
The Commission was established by French President Nicolas Sarkozy due to his dissatisfaction with our current indicators.
Their first report will be released September 14.
The Descent
Erik Eckholm, of the New York Times, expounds on the poverty rate, median incomes, and health insurance coverage in an illuminating article.
Also, check out Daniel Gross' Sorry, Pal, but You're Not Rich.
Also, check out Daniel Gross' Sorry, Pal, but You're Not Rich.
Saturday, September 12, 2009
Public Dollars, Private Profits
We have $50+ million for Mercury Marine, $409 million for General Motors, $500+ million for Miller Park, roughly $400 million for Lambeau Field renovations, and $5 million for a movie, yet state and local government have no money for sick days, to cover pension commitments, to ensure living wage jobs, or to create a public works program to employ residents during the current recession.
Governor Doyle, Mayor Barrett and County Executive Scott Walker have all threatened pay-cuts, lay-offs, furloughs, terminations, increased health care premiums, and reneging on pension obligations as solutions to the "budget crisis." They can't consider overturning exemptions on the one-third of properties in the state that pay no property taxes, raising taxes on the wealthiest, or cracking down on corporate tax evasion. No. As usual, the workers, not the wealthy, must suffer. The unfortunate victims caught between blackmailing, mobile corporations and spineless federal legislators.
It seems our tax dollars are plentiful for persistent private ventures and playgrounds, but not available for local service provision and sustaining a quality of life for all citizens.
Governor Doyle, Mayor Barrett and County Executive Scott Walker have all threatened pay-cuts, lay-offs, furloughs, terminations, increased health care premiums, and reneging on pension obligations as solutions to the "budget crisis." They can't consider overturning exemptions on the one-third of properties in the state that pay no property taxes, raising taxes on the wealthiest, or cracking down on corporate tax evasion. No. As usual, the workers, not the wealthy, must suffer. The unfortunate victims caught between blackmailing, mobile corporations and spineless federal legislators.
It seems our tax dollars are plentiful for persistent private ventures and playgrounds, but not available for local service provision and sustaining a quality of life for all citizens.
Thursday, September 10, 2009
A Successful Swindle
The union has conceded. The company will get their “wage freeze and 30 percent pay cut for new hires and workers called back from layoffs.”
They will also get $3 million from the City of Fond du Lac.
And, they will have access to $50 million in a low-interest, performance based loan from Fond du Lac County. There is $500 credit for job retention, a $1,000 credit for job creation, and a $500 penalty for job loss. A proposed half-cent sales tax would help support this incentive.
The threat of firing 800 to 1,800 workers and, possibly, economically eviscerating a community seems quite lucrative.
One odd comment from the Journal Sentinel article reporting this latest development in the Mercury Marine saga: Steve Buechel, Fond du Lac County Executive, stated, “This is going to help them get a new product to market.”
Yet, in a previous article, the Mercury Marine president said, “Quite simply, Mercury is capable of producing many more engines than the market will require in the foreseeable future. Our facilities were designed and built during much different market conditions and are now underutilized.”
They will also get $3 million from the City of Fond du Lac.
And, they will have access to $50 million in a low-interest, performance based loan from Fond du Lac County. There is $500 credit for job retention, a $1,000 credit for job creation, and a $500 penalty for job loss. A proposed half-cent sales tax would help support this incentive.
The threat of firing 800 to 1,800 workers and, possibly, economically eviscerating a community seems quite lucrative.
One odd comment from the Journal Sentinel article reporting this latest development in the Mercury Marine saga: Steve Buechel, Fond du Lac County Executive, stated, “This is going to help them get a new product to market.”
Yet, in a previous article, the Mercury Marine president said, “Quite simply, Mercury is capable of producing many more engines than the market will require in the foreseeable future. Our facilities were designed and built during much different market conditions and are now underutilized.”
Tax Cuts v Health Care
Health care reform legislation is projected to cost $1 trillion, if enacted, from 2010 to 2019. Republicans have been feigning outrage. George Bush’s tax cuts cost $2.5 trillion from 2001 to 2010.
As Citizens for Tax Justice comment, “Many of the lawmakers who argue that the health care reform legislation is too costly are the same lawmakers who supported Bush tax cuts.”
52.5 percent of the tax cuts went to the richest 5 percent of taxpayers.
As Citizens for Tax Justice comment, “Many of the lawmakers who argue that the health care reform legislation is too costly are the same lawmakers who supported Bush tax cuts.”
52.5 percent of the tax cuts went to the richest 5 percent of taxpayers.
Misplaced Priorities
Barry Ritholtz, Director of Equity Research at Fusion IQ and the man behind the blog The Big Picture, has some concerns over the Obama administration’s priorities. He feels they may have wasted a crisis by not reforming the financial system before trying to revolutionize health care. I think he’s right.
But…is there any doubt regarding why the health care choice was made? With financiers running government, there was little to no chance they were going to re-regulate their cronies. (Even in Obama’s change administration.)
But…is there any doubt regarding why the health care choice was made? With financiers running government, there was little to no chance they were going to re-regulate their cronies. (Even in Obama’s change administration.)
Saturday, September 5, 2009
Suburban Desert
36% More For Water? Suburbs Say Milwaukee's All Wet
No one made suburbanites build in unsustainable areas. They did so because it was cheap (artificially so, by government subsidies), to get away from central city minorities and poor, and for the 5-acre yards they so adore. If suburbanites choose to continue to live environmentally irresponsibly, there is a price to be paid.
Talk about the culture of convenience and entitlement. Surely as the good little, conservative, uber-capitalists most suburbanites are, they know that water is more and more becoming our world's most precious resource. [Finally, we're all realizing this.] So they obviously can understand that as demand for something increases, while the supply remains stable or diminishes, price will go up.
And, if the Sprawlestinas don't like it, well...good luck.
No one made suburbanites build in unsustainable areas. They did so because it was cheap (artificially so, by government subsidies), to get away from central city minorities and poor, and for the 5-acre yards they so adore. If suburbanites choose to continue to live environmentally irresponsibly, there is a price to be paid.
Talk about the culture of convenience and entitlement. Surely as the good little, conservative, uber-capitalists most suburbanites are, they know that water is more and more becoming our world's most precious resource. [Finally, we're all realizing this.] So they obviously can understand that as demand for something increases, while the supply remains stable or diminishes, price will go up.
And, if the Sprawlestinas don't like it, well...good luck.
Friday, September 4, 2009
The Politics of Distraction & Lies
So, the Republicans have become so unhinged from reality that they now are trying to sell the idea that President Obama is trying to indoctrinate American children. The President is going to address school kids on their first day back, September 8th. He plans to "deliver a national address directly to students on the importance of education. The President will challenge students to work hard, set educational goals, and take responsibility for their learning. He will also call for a shared responsibility and commitment on the part of students, parents and educators to ensure that every child in every school receives the best education possible so they can compete in the global economy for good jobs and live rewarding and productive lives as American citizens."
For this, the right-wing is comparing President Obama to Mao, Hitler, and other loathsome figures.
Conservatives really have nothing left to offer. Do they?
For this, the right-wing is comparing President Obama to Mao, Hitler, and other loathsome figures.
Conservatives really have nothing left to offer. Do they?
Monday, August 31, 2009
Banks & Bailouts
The New York Times reports As Biggest Banks Repay Bailout Money, U.S. Sees Profit. Matt Taibbi and Max Keiser offer some perspective on the Times somewhat fanciful narrative.
Sunday, August 30, 2009
A Response to Auntie
Auntie Em left a comment regarding my Extortion & Mercury Marine piece. Her comments are below, intertwined with my response (in italics).
Merc Marine maybe wouldn't be in such a tight place, if Doyle hadn't made WI such a business-hostile state. My daughter, who has 2 related small businesses, now gets taxed TWICE due to his latest bloated budget.
So, since taking office in January of 2003, Gov. Doyle has made Wisconsin a business-hostile state? In 5 or 6 years he made Wisconsin business hostile? How so? And, regarding your daughter, taxed twice? How so? These are all classic Wisconsin Republican right wing-talking points…too bad none of them are true.
- Tax Hall Hoax
- Corporate Tax Avoidance
- Wisconsin's Corporate Sector Underpays Taxes
- Wisconsin Business Climate
- Wisconsin Business Climate Statistics
She only grosses about 21K per year, nets 13K, but that wasn't enough for Diamond Jim; now she has to be double-taxed!
Double-taxed? Or just paying more in taxes? And, why do you think average workers and small businesses are paying more? It’s because the largest corporations don’t pay anything anymore.
You need to remember something, ALL BUSINESSES EXIST TO MAKE MONEY. If they start losing money, they revamp, initiate layoffs, MOVE...Apparently, demand for their product is down 40%. They pay more than $620,000 in property taxes, which will assuredly go up due to Doyle's slash-and-burn policies.
They just signed a contract with the union a few years ago. It wasn’t expired. So they just decide to tear it up? Or basically renegotiate it with punitive terms. I’m sure that’s the kind of contractual treatment you’d want from your insurance company, credit card company, or bank.
How much property do they own? Do you expect them to pay nothing in taxes? $620,000 in property taxes you say? Where is this number from? And, if it's true, that just means they own roughly $28 million worth of property in the state. There is a cost of doing business. And taxes are the price of civilization. Those making more, obviously pay more. Just as you and I pay property taxes, sales taxes, etc. I always find it strange that low-income and middle-class workers defend the wealthiest among us (their tax breaks, their extravagant lifestyle, their corrupt business practices, etc.). As if, by doing so, we have-nots will become wealthy, too. The more one has, the more public services one generally uses…therefore, they pay more – in property taxes, water bills, etc.
The deal they offered the union included:
* Buy-out packages of $5,000 to $25,000, based on years of service
* Medical coverage and contributions will be the same as salary plans.
* Pension plan frozen, not eliminated, at current $48 per year of service multiplier.
* Retirement plan becomes defined contribution plan (401K) with Company matching 50 cents for every dollar contributed up to 6 percent on top of benefits already earned.
* Employees retiring in 2009 may elect current retiree medical plan at current contribution rates.
* Employees retiring after Dec. 31, 2009 will be offered an optional retiree medical plan with contributions equal to salary retiree medical plan.
I suspect the union bosses are more concerned about themselves than their members, as most times, THEY don't suffer the hardships the workers do. To quote Brian Dunbar:
"I recall a report I read a few years ago following a similar decision in Tennessee: company said they could not operate, union de facto voted to close the plant rather than concede wages and benefits.
Union bosses don’t hold the hand of the workers as they cast their vote. I like how conservatives see all unions and union bosses as corrupt, but the largest earners: the banks, the insurers, the hedge funds, the corporate CEOs – they’re just efficient businessmen. Who are the ones making millions while threatening workers making $20-an-hour?
Brian Dunbar? Is he a union, labor, employment, or legal scholar? And, let’s see the report he speaks of. Let’s look at the methodology, quotes, and facts around that situation and see how they reached their conclusions. “I recall” isn’t quite the rigorous analytical standard I’m willing to base something on.
The senior members of the union made out like bandits: with state-provided unemployment benefits, union-provided benefits and etc. they were making more money after being laid-off than they were when working."
This is ridiculous and unsubstantiated. Show me the evidence. Some anti-union, pro-business pundit or shill saying so does not make it so. It’s yet another unsupported smear. And, the state provides unemployment benefits to anyone, whom was previously working (if you have enough wages to qualify for a claim) in the state. Unemployment insurance – one of the many benefits brought to us by unions.
For my part, I'd take a wage cut rather than lose my job. Same for my son, who only makes $14/hr, but keeps getting laid off. He's trying to get a steady job for $12/hr. My dad (worked for Harley) always said he feared the union would strike-or-demand themselves out of jobs. Now we see it happening.
In principle, I agree. I’d rather work than not. But where does it end? This makes contracts - the relationship between capital and labor - meaningless. Companies can now just pick up whenever they like, no matter the circumstances. The labor cost for the workers are too expensive? Yet, somehow, they have millions available for the executives. This is union busting, class warfare, and plutocracy.
Again, it’s strange how you don’t see any lack of morals or equity by a Brunswick CEO (the parent company of Mercury Marine) who made over $9 million dollars last year. His compensation is equivalent to 225 average union workers at Mercury Marine. Yet, he’s in charge of the company, and, as you said, his product is down 40 percent. But he doesn’t deserve a pay cut? Or to lose his job? He doesn’t have to sacrifice anything? No. Only the workers need to feel the pain.
Also, his pay has an award incentive based on stock options (as most executives have), which when you move a company, shed good-paying jobs, and replace those with non-union jobs, your stock value increases. This is less about good business practices and more about Wall Street chicanery and manipulating stock value. This ends up fattening his wallet alongside the other wealthy of society who own most stocks. (Another reason 401(K)s are such bad retirement options. They leave the majority of workers’ retirements dependent upon the whims of Wall Street, traders, and greedy business executives.)
And, for as tough as you make it sound your family has had it (daughter, son ,etc.), it’s surprising the strength of your support for the corporate behemoths garnering most of the wealth produced by the workers of this country. If it wasn’t for unions and the policies they’ve fought for over the years, we’d all be quasi-Wal-Mart workers, without insurance, making $1-a-day, working 60 hours a week, 7 days a week.
I appreciate your thoughts. As with any issue, I’m willing to make concessions and reach a resolution. But the workers of the U.S. have been giving up everything for the last 4 decades. It’s not about dismissing business and the valuable contributions corporations can make, but about equity and regaining some appreciation for the workers out there doing the actual work and making the services and goods that allow the businesses to be in business in the first place.
For Further Reading:
How Unions Can Help Restore the Middle Class
Shareholder Value and the Transformation of the American Economy
Welcome to the New World Job Order
Keeping Score
In discussing health care on This Week With George Stephanopoulos, John Kerry used Massachusetts as an example to defend portions of the Democrat's bills, based on the outcomes in that state. To refute this, Orrin Hatch held up Utah as the example of quality health care in the states.
17.4 percent have no health insurance coverage on Utah. Only 10.4 percent go without in Massachusetts.
For Further Reading:
Medical Bankruptcy in the U.S., 2007
According to the latest rankings among U.S. states: Massachusetts ranks 2nd, 5th or 7th; Utah 7th, 12th or 21st. When it comes to child health performance: Massachusetts 4th, Utah 27th.
17.4 percent have no health insurance coverage on Utah. Only 10.4 percent go without in Massachusetts.
For Further Reading:
Medical Bankruptcy in the U.S., 2007
Friday, August 28, 2009
The Lowest of the Low
It really doesn’t get any worse than Rush Limbaugh. He’s a truly despicable and repulsive person (I use the noun ‘person’ loosely). He makes nasty comments regarding Ted Kennedy, while also making snide comments about a union member mourning Kennedy’s passing.
Why aren’t advertisers disassociating from this babbling, delusional, bloated bag of flesh?
Why aren’t advertisers disassociating from this babbling, delusional, bloated bag of flesh?
Extortion & Mercury Marine
Governor Doyle said, “The State of Wisconsin has offered an aggressive package to assist Mercury Marine. I am certain this package is sufficient to sustain Mercury Marine’s market leadership, and to allow it to consolidate and operate efficiently in Wisconsin. I am equally certain that Wisconsin’s offer is competitive with any other offer from any other state.”
And, I’m sure, as of this moment, the politicians in Oklahoma are putting together and inflated package of giveaways to ensure Mercury Marine moves to Stillwater. Oklahoma already has enabled Mercury Marine to avoid a tax penalty of $1 million. This was due to an earlier incentive given to the company to create jobs – which they didn’t do – and were, therefore, supposed to pay a penalty – a clawback.
Here’s a plan: Let them move. Then we’ll declare the former Mercury Marine site blighted. The state can then take it over using eminent domain. Next, we can declare the site a TIF district and use the money to make investments into the site. We’ll have the state institute a transitional management team, employing former Mercury Marine workers to build green technology – windmills, solar panels, etc. This might allow even more federal stimulus money since it would be an infrastructure and green project.
This is better than tolerating these companies holding cities hostage and stealing millions of dollars with the threat of moving out of town.
Also, since Jim Doyle isn’t running for governor next term, he could use his legal and political knowledge to start drafting legislation to put an end to this “Economic War Among The States”.
And, I’m sure, as of this moment, the politicians in Oklahoma are putting together and inflated package of giveaways to ensure Mercury Marine moves to Stillwater. Oklahoma already has enabled Mercury Marine to avoid a tax penalty of $1 million. This was due to an earlier incentive given to the company to create jobs – which they didn’t do – and were, therefore, supposed to pay a penalty – a clawback.
Here’s a plan: Let them move. Then we’ll declare the former Mercury Marine site blighted. The state can then take it over using eminent domain. Next, we can declare the site a TIF district and use the money to make investments into the site. We’ll have the state institute a transitional management team, employing former Mercury Marine workers to build green technology – windmills, solar panels, etc. This might allow even more federal stimulus money since it would be an infrastructure and green project.
This is better than tolerating these companies holding cities hostage and stealing millions of dollars with the threat of moving out of town.
Also, since Jim Doyle isn’t running for governor next term, he could use his legal and political knowledge to start drafting legislation to put an end to this “Economic War Among The States”.
Malicious Mercury Marine
Allow us to freeze your wages for seven years and cut the starting rate for new hires. That’s part of the “deal” the union at Mercury Marine was offered. Bravely, they said, “Thanks, but no thanks.”
A Journal Sentinel article quotes the Mercury Marine president, “Quite simply, Mercury is capable of producing many more engines than the market will require in the foreseeable future. Our facilities were designed and built during much different market conditions and are now underutilized.”
This seems to be a problem of management and planning. But, of course, for which, the everyday workers will have to sacrifice.
According to the Executive Paywatch Database, Dustan McCoy, CEO of the Brunswick Corporation (Mercury Marine’s parent company), “In 2008, Dustan E. McCoy raked in $9,334,343 in total compensation. In the previous year the CEO of this company made $8,623,206. Total CEO compensation has increased by 8%.”
I’m sure these executives will be taking a pay-cut and agreeing to a wage freeze to show solidarity with their workers – the ones who actually produce the goods that allow the executives to get such ridiculous compensation. The average unionized Mercury Marine worker earns $20 per hour; roughly $41,600 per year. McCoy’s earnings alone are equivalent to the yearly wages of nearly 225 workers.
Pundits, talking-heads, parrots, and a generally business-friendly press all seem to be on board with the idea that a reduced-wage job is better than no job at all. It’s always the responsibility of the lowest on the ladder to feel the pain. Why is there no longer accountability among the executives that are supposed to be running these companies? Why, when profits decrease, or when their stock value decreases are executives still rewarded with increased compensation? While simultaneously laying off workers and rewriting union contracts forcing workers to make concessions.
Alongside this, these same pundits always push for state giveaways to the corporations. Subsidizing workers’ wages or healthcare outright is bad policy. Rather than just directly giving tax breaks, incentives, or subsidies to workers, the circuitous route of trickle-down is preferred. They rationalize that giving away millions to corporations to create/retain jobs is sound policy.
Thom Hartmann offers an idea for how we might get this country back on the right track.
A Journal Sentinel article quotes the Mercury Marine president, “Quite simply, Mercury is capable of producing many more engines than the market will require in the foreseeable future. Our facilities were designed and built during much different market conditions and are now underutilized.”
This seems to be a problem of management and planning. But, of course, for which, the everyday workers will have to sacrifice.
According to the Executive Paywatch Database, Dustan McCoy, CEO of the Brunswick Corporation (Mercury Marine’s parent company), “In 2008, Dustan E. McCoy raked in $9,334,343 in total compensation. In the previous year the CEO of this company made $8,623,206. Total CEO compensation has increased by 8%.”
I’m sure these executives will be taking a pay-cut and agreeing to a wage freeze to show solidarity with their workers – the ones who actually produce the goods that allow the executives to get such ridiculous compensation. The average unionized Mercury Marine worker earns $20 per hour; roughly $41,600 per year. McCoy’s earnings alone are equivalent to the yearly wages of nearly 225 workers.
Pundits, talking-heads, parrots, and a generally business-friendly press all seem to be on board with the idea that a reduced-wage job is better than no job at all. It’s always the responsibility of the lowest on the ladder to feel the pain. Why is there no longer accountability among the executives that are supposed to be running these companies? Why, when profits decrease, or when their stock value decreases are executives still rewarded with increased compensation? While simultaneously laying off workers and rewriting union contracts forcing workers to make concessions.
Alongside this, these same pundits always push for state giveaways to the corporations. Subsidizing workers’ wages or healthcare outright is bad policy. Rather than just directly giving tax breaks, incentives, or subsidies to workers, the circuitous route of trickle-down is preferred. They rationalize that giving away millions to corporations to create/retain jobs is sound policy.
Thom Hartmann offers an idea for how we might get this country back on the right track.
Thursday, August 27, 2009
Kennedy Condolences
Sarah Palin’s Facebook friends attack Ted Kennedy upon his death. Kudos to Palin for a sympathetic statement regarding Kennedy’s passing. But her response to the rubes posting on her page will be much more telling of her leadership, understanding, and inclusiveness.
Is this the type of electorate we want in the majority? Is this the kind of decorum and high-mindedness we want in a mayor, governor, or vice-president?
Robert Scheer elaborates on all the "horrible" things Senator Kennedy did for his country.
If only we had more Ted Kennedys and less Sarah Palins.
For Further Reading:
Ted Kennedy's Legislative Accomplishments
Ted Kennedy: Keeper of the Liberal Flame
The Eternal Flame
Is this the type of electorate we want in the majority? Is this the kind of decorum and high-mindedness we want in a mayor, governor, or vice-president?
Robert Scheer elaborates on all the "horrible" things Senator Kennedy did for his country.
If only we had more Ted Kennedys and less Sarah Palins.
For Further Reading:
Ted Kennedy's Legislative Accomplishments
Ted Kennedy: Keeper of the Liberal Flame
The Eternal Flame
Inflation Exaggeration
The latest scare tactic being pushed by the status quo is that we cannot stimulate the economy anymore because all our debt is going to cause inflation.
A couple of things about this:
Debt as a percentage of GDP is not even close to the post WWII level. Obviously we can sustain higher levels of debt to revitalize the economy without worrying about inflation. Let’s not forget that, historically, the period from the mid 1940s to the early 1970s, which began with huge levels of debt (up to 120 percent of GDP after WWII), also saw the U.S.’s largest growth rate.
Second, most of those saying we need more stimuli also realize the need to rein it in after we have more clear signs that the economy is improving – employment increasing, house prices stabilizing, etc. Those pretending this is some sinister plan of never-ending government spending are only spinning such nonsense so that they can reassert their own false messiah – tax cuts. And, we know who has primarily benefited from the tax cuts of the last 30 years. Plus, inflation tends to hurt lenders more than borrowers. Who are they really protecting in the battle against inflation? [It would be nice if the Fed, in their supposed dual mandate, focused as much on full employment as they do on price stabilization.]
Some are saying house prices have hit bottom and therefore we can disregard any and all stimulative efforts. But this is a simple misreading of seasonal housing data that misrepresents reality. [Although it should be noted the Milwaukee market has shown amazing resiliency in comparison to other areas of the country.]
Be careful of the latest Paul Reveres crusading against inflation. It is more likely the usual distractionary politics masking typically upwardly redistributive policies.
A couple of things about this:
Debt as a percentage of GDP is not even close to the post WWII level. Obviously we can sustain higher levels of debt to revitalize the economy without worrying about inflation. Let’s not forget that, historically, the period from the mid 1940s to the early 1970s, which began with huge levels of debt (up to 120 percent of GDP after WWII), also saw the U.S.’s largest growth rate.
Second, most of those saying we need more stimuli also realize the need to rein it in after we have more clear signs that the economy is improving – employment increasing, house prices stabilizing, etc. Those pretending this is some sinister plan of never-ending government spending are only spinning such nonsense so that they can reassert their own false messiah – tax cuts. And, we know who has primarily benefited from the tax cuts of the last 30 years. Plus, inflation tends to hurt lenders more than borrowers. Who are they really protecting in the battle against inflation? [It would be nice if the Fed, in their supposed dual mandate, focused as much on full employment as they do on price stabilization.]
Some are saying house prices have hit bottom and therefore we can disregard any and all stimulative efforts. But this is a simple misreading of seasonal housing data that misrepresents reality. [Although it should be noted the Milwaukee market has shown amazing resiliency in comparison to other areas of the country.]
Be careful of the latest Paul Reveres crusading against inflation. It is more likely the usual distractionary politics masking typically upwardly redistributive policies.
Friday, August 21, 2009
Site Selection Shenanigans
More business retention, economic development blackmail.
Typically, a business threatens to move its facilities unless a state or locality will provide a subsidy - a bribe. [Think Mercury Marine, which wants a 7-year pay freeze and a 30 percent pay reduction for new hires or says it will move to Oklahoma. This is more a threat to gain concessions from the union, but concessions nonetheless.] They don't do this because they seriously feel the cost of moving to another site is worth it or that another site is more optimal for their business. They demand a subsidy because they can. Threats of leaving caused politicians to provide subsidy packages to these blackmailing businesses. This is (supposedly) economic development.
140 new jobs, it's claimed, will be created. With a $3.25 million subsidy from the state and $3 million property tax credit from Menomenee Falls, that's roughly $45,000 per job created. This is actually not a bad number (compared to the hundreds of thousands some subsidies have cost per job). And, in the larger scheme of things, a $6.25 million subsidy is chump change. But just because this deal does not have the mind-boggling numbers of some others, that still does not make it right.
Why did normal business operations and expansions become partial monetary responsibilities for taxpayers? It's great that we have successful businesses that have grown over the years and are national leaders in their industries. But, if another site is more optimal, they should move, this would lead to more actual growth for the national economy. Why would we pay millions to retain a comparatively weaker facility? Eventually a competitor in a more optimal location will outperform and put the weaker company out of business. If a company feels they need to grow and increase production, it should not be the state's responsibility to fund this. One would think that this would be a sound management decision based on sound business principles.
Unless we're deciding on a quasi-industrial policy whereby taxpayers support local business retention and expansion. But if that's the case, there needs to be a public discussion between politicians, business leaders, and taxpayers. It has to be connected with comparative advantage, sectoral areas where we feel we can compete and grow, and within a comprehensive planning strategy for the state and the region.
These backroom deals, giving away millions to successful companies, need to be brought out into the light of day.
Typically, a business threatens to move its facilities unless a state or locality will provide a subsidy - a bribe. [Think Mercury Marine, which wants a 7-year pay freeze and a 30 percent pay reduction for new hires or says it will move to Oklahoma. This is more a threat to gain concessions from the union, but concessions nonetheless.] They don't do this because they seriously feel the cost of moving to another site is worth it or that another site is more optimal for their business. They demand a subsidy because they can. Threats of leaving caused politicians to provide subsidy packages to these blackmailing businesses. This is (supposedly) economic development.
140 new jobs, it's claimed, will be created. With a $3.25 million subsidy from the state and $3 million property tax credit from Menomenee Falls, that's roughly $45,000 per job created. This is actually not a bad number (compared to the hundreds of thousands some subsidies have cost per job). And, in the larger scheme of things, a $6.25 million subsidy is chump change. But just because this deal does not have the mind-boggling numbers of some others, that still does not make it right.
Why did normal business operations and expansions become partial monetary responsibilities for taxpayers? It's great that we have successful businesses that have grown over the years and are national leaders in their industries. But, if another site is more optimal, they should move, this would lead to more actual growth for the national economy. Why would we pay millions to retain a comparatively weaker facility? Eventually a competitor in a more optimal location will outperform and put the weaker company out of business. If a company feels they need to grow and increase production, it should not be the state's responsibility to fund this. One would think that this would be a sound management decision based on sound business principles.
Unless we're deciding on a quasi-industrial policy whereby taxpayers support local business retention and expansion. But if that's the case, there needs to be a public discussion between politicians, business leaders, and taxpayers. It has to be connected with comparative advantage, sectoral areas where we feel we can compete and grow, and within a comprehensive planning strategy for the state and the region.
These backroom deals, giving away millions to successful companies, need to be brought out into the light of day.
Thursday, August 20, 2009
Extrapolate Your Head From Your...
Wouldn't it be nice if politicians and their talking-heads could just admit when they're wrong, when they've misunderstood something or misspoke? Sadly it seems that will never be the case in our "with us or against us" political system.
Patrick McIlheran at the Journal Sentinel aims to deduce the seedy, underlying "meaning" in the Democrats' health care proposals. He parrots the Republican qualifier that "death panel" may not be in any proposal, but the implication is there.
Pat quips, regarding death panels, “They’re not in the bill but the logic is most certainly contained in what the bill empowers government to do.”
The proposals simply state that if a person or their family chooses to have an end of life consultation it is reimbursable. Basically, you're now covered to enact a living will. But the masters of political treachery - the Republicans - have turned this into the death sport of Democrats versus grandmothers.
But I guess this is typical Republican tactics: focus on that which cannot be proven or disproven. [Since they choose to ignore actually reading the proposals; it's so much easier to just make stuff up.] Obama was born in Kenya. Even when they're shown his birth certificate, that still doesn't disprove their crazy lie. Next, they fabricate "death panels". When it's shown that no such thing is in any bill, they simply say, "But that's obviously the intent."
Is there really any point trying to have a debate/discussion with these people? As Barney Frank said to an agitator at a town hall meeting the other day, "Trying to have a conversation with you would be like trying to argue with the dining room table."
Patrick McIlheran at the Journal Sentinel aims to deduce the seedy, underlying "meaning" in the Democrats' health care proposals. He parrots the Republican qualifier that "death panel" may not be in any proposal, but the implication is there.
Pat quips, regarding death panels, “They’re not in the bill but the logic is most certainly contained in what the bill empowers government to do.”
The proposals simply state that if a person or their family chooses to have an end of life consultation it is reimbursable. Basically, you're now covered to enact a living will. But the masters of political treachery - the Republicans - have turned this into the death sport of Democrats versus grandmothers.
But I guess this is typical Republican tactics: focus on that which cannot be proven or disproven. [Since they choose to ignore actually reading the proposals; it's so much easier to just make stuff up.] Obama was born in Kenya. Even when they're shown his birth certificate, that still doesn't disprove their crazy lie. Next, they fabricate "death panels". When it's shown that no such thing is in any bill, they simply say, "But that's obviously the intent."
Is there really any point trying to have a debate/discussion with these people? As Barney Frank said to an agitator at a town hall meeting the other day, "Trying to have a conversation with you would be like trying to argue with the dining room table."
Wednesday, August 19, 2009
Tuesday, August 18, 2009
The Public Realm
Jon Stewart answers, as Barack Obama should have, to the questions of a conservative college student [Zack Lane, (public) University of Colorado, at roughly 3:17], as well as other health care considerations.
Bill Maher finishes the thought as to why public options, in general, can be preferential to the privatization of everything.
Bill Maher finishes the thought as to why public options, in general, can be preferential to the privatization of everything.