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
Thursday, October 29, 2009
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
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
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 into 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 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 into 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 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, airports, 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, airports, 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 sought-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 corporations 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:
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
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