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
Wednesday, September 30, 2009
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
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
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
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.
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