An Update on State Budget Cuts
Comparing Public & Private Sector Compensation
Privatization During An Economic Downturn
Public Debt and Other Issues
Thursday, April 29, 2010
Tuesday, April 27, 2010
Sunday, April 25, 2010
Tea Bag This
Citizens for Tax Justice has found President Obama Cut Taxes for 99% of Working Families in Wisconsin in 2009.
Road Weary
Two excellent articles from the Journal Sentinel regarding public transportation subsidization:
Road debate developed into a zoo
You know those roads? They're heavily subsidized
Road debate developed into a zoo
You know those roads? They're heavily subsidized
Tax Facts
Tax Facts (via Tom Schaller):
- The U.S. ranks fifth lowest in tax revenues as a share of GDP among OECD countries; at 28 percent - 20 percent lower than the OECD average
- Federal taxes as a share of GDP have been steady since 1950; at roughly 20 percent
- Income taxes as a share of GDP have also been steady over the same time period
- Only approximately 20 percent of GDP goes to the (federal) public sector
Saturday, April 3, 2010
Fuzzy Math
Dean Baker makes an excellent correction to the mainstream media storyline which claims Citigroup has paid back the government. And, that the government will actually make a profit from the bailout of Citigroup.
Pity The Poor CEOs
The USA Today wants us to feel sorry for CEOs (Many CEOs take a pay cut in 2009). They were paid a median salary of $1.01 million in 2009. The median value of stocks and options they received was $3.7 million. The median value of their perks and compensation was $125,198.
Yes, pity the poor CEOs indeed.
Yes, pity the poor CEOs indeed.
Sunday, March 28, 2010
Saturday, March 27, 2010
Levy Legitimacy
Douglas Kane has an excellent article clarifying the discussion on business climate, taxes, best places to live, job growth and quality of life.
Lower taxes do not result in a better quality of life nor larger business or job growth.
Lower taxes do not result in a better quality of life nor larger business or job growth.
The Suburban Apologist & Revisionist
Pat McIlerhan is - again - defending the poor suburbs against the big, bad city. When Milwaukee wants a fair price for its water, when continued sprawl is pointed to as an environmental issue, Pat is there to label such as anti-suburban. No such counter claim (anti-city) is ever mouthed when policies - highway expansion, sprawl, autocentrism, etc. - hurt the city.
Pat writes, "Waukesha's problem is that its well water is tainted with radium, put there by God and declared unacceptable by the EPA." Hey, if that radium-laced, god-given water is just fine, Waukesha doesn't need Milwaukee's water. The EPA is obviously another liberal, overzealous regulatory body working in concert with the Democrats' plans to turn the U.S. into a communist nation. Waukesha, continue drinking your radium-laced, god-given elixir.
The idea that Milwaukee simply receiving money from the sale of water will solve all problems is juvenile and short-sighted. Sure, the extra money would help the Milwaukee budget. More money tends to help any budget. But the continued sprawl of Waukesha will hurt the region as a whole, while continuing metropolitan competition for new jobs and expansion. Until we have regional revenue sharing policies, whereby the region benefits from growth, rather than one municipality, it is a (nearly) zero sum game.
And, why must Milwaukee always be the bigger person (especially in allowing policies that primarily benefit other communities)? Where are the suburbs in supporting regional rail transit? Or anti-poverty programs? What the City wants, what might benefit a large portion of our poor residents, Pat dismisses. But anything the suburbs want, that is part of a larger natural progression. A blessing to us all which we would be fools to not support. Give me a break!
Pat then claims, "Milwaukee's revival will come not by forcing the most urban area in Waukesha County to hand over money." Yet that's exactly how the suburbs grew. By forcing city-dwellers to hand over their tax dollars to allow for highway expansion and home mortgages, after WWII, which fueled suburban growth.
He closes with the absurdity, "The region can thrive if its parts cooperate." So, Pat, tell me one thing the suburbs have wanted to cooperate on with the city? Cooperation is not a one-way street.
Pat writes, "Waukesha's problem is that its well water is tainted with radium, put there by God and declared unacceptable by the EPA." Hey, if that radium-laced, god-given water is just fine, Waukesha doesn't need Milwaukee's water. The EPA is obviously another liberal, overzealous regulatory body working in concert with the Democrats' plans to turn the U.S. into a communist nation. Waukesha, continue drinking your radium-laced, god-given elixir.
The idea that Milwaukee simply receiving money from the sale of water will solve all problems is juvenile and short-sighted. Sure, the extra money would help the Milwaukee budget. More money tends to help any budget. But the continued sprawl of Waukesha will hurt the region as a whole, while continuing metropolitan competition for new jobs and expansion. Until we have regional revenue sharing policies, whereby the region benefits from growth, rather than one municipality, it is a (nearly) zero sum game.
And, why must Milwaukee always be the bigger person (especially in allowing policies that primarily benefit other communities)? Where are the suburbs in supporting regional rail transit? Or anti-poverty programs? What the City wants, what might benefit a large portion of our poor residents, Pat dismisses. But anything the suburbs want, that is part of a larger natural progression. A blessing to us all which we would be fools to not support. Give me a break!
Pat then claims, "Milwaukee's revival will come not by forcing the most urban area in Waukesha County to hand over money." Yet that's exactly how the suburbs grew. By forcing city-dwellers to hand over their tax dollars to allow for highway expansion and home mortgages, after WWII, which fueled suburban growth.
He closes with the absurdity, "The region can thrive if its parts cooperate." So, Pat, tell me one thing the suburbs have wanted to cooperate on with the city? Cooperation is not a one-way street.
Car Clowns
The Journal Sentinel reports, Rail Opponents Rally Suburbs.
Fine. We'll route rail around these communities. No charges, no more questions asked. When communities along the route are booming, and then these anti-rail suburbs want in, too bad, so sad.
But, city-dwellers and would-be rail-users would like to have our money back. The tax dollars which allowed the continued expansion of the highways (to the detriment of cities), and thus these anti-rail suburbs. But seriously...
Plenty of viable citizens didn't want highways dissecting their neighborhoods. But the U.S. marched forward building roads everywhere, transplanting homeowners and businesses. Supposedly this was in our best interest. Highways were a magical route to cheaper land (and environmental degradation). Never mind the problems with water availability, wetland destruction, sewer runoff, and pollution.
Well, we've learned something since then. Continued highway expansion is unsustainable and environmentally destructive. This isn't an all-or-none dilemma. The automobile and rail need to coexist. Most other communities realize this. Milwaukee is one of the last few metro areas to begin implementing a rail plan or system.
City folk have been forced to support (tax dollars) highways. Now the shoe is on the other foot. Suburbanites it's time to reciprocate; and rejoice in the positive consequences.
Fine. We'll route rail around these communities. No charges, no more questions asked. When communities along the route are booming, and then these anti-rail suburbs want in, too bad, so sad.
But, city-dwellers and would-be rail-users would like to have our money back. The tax dollars which allowed the continued expansion of the highways (to the detriment of cities), and thus these anti-rail suburbs. But seriously...
Plenty of viable citizens didn't want highways dissecting their neighborhoods. But the U.S. marched forward building roads everywhere, transplanting homeowners and businesses. Supposedly this was in our best interest. Highways were a magical route to cheaper land (and environmental degradation). Never mind the problems with water availability, wetland destruction, sewer runoff, and pollution.
Well, we've learned something since then. Continued highway expansion is unsustainable and environmentally destructive. This isn't an all-or-none dilemma. The automobile and rail need to coexist. Most other communities realize this. Milwaukee is one of the last few metro areas to begin implementing a rail plan or system.
City folk have been forced to support (tax dollars) highways. Now the shoe is on the other foot. Suburbanites it's time to reciprocate; and rejoice in the positive consequences.
Saturday, March 20, 2010
Weekend Reading
Jobs:
18 Million Jobs by 2012
How A New Jobless Era Will Transform America
What Happened To The American Working Class?
Who Broke America's Jobs Machine?
Economic Policy:
Republican and Democrat Presidents Have Switched Economic Policies
Stimulus:
Fiscal Stimulus, The Definitive Answer: It Works.
In Defense of Deficits
The Effectiveness of Fiscal and Monetary Stimulus in Depressions
18 Million Jobs by 2012
How A New Jobless Era Will Transform America
What Happened To The American Working Class?
Who Broke America's Jobs Machine?
Economic Policy:
Republican and Democrat Presidents Have Switched Economic Policies
Stimulus:
Fiscal Stimulus, The Definitive Answer: It Works.
In Defense of Deficits
The Effectiveness of Fiscal and Monetary Stimulus in Depressions
Sunday, March 14, 2010
Myth Busting: Job Training
Globalization is inevitable. You can't stop it. It's good for all. Get on board or be left behind. To stay viable you need additional education and training.
There is only 1 job available for every 6 unemployed workers. So what exactly do these hucksters want people to retrain for? The economy continues to expand (even if that growth is slower). Workers have simply been cut off from the expansion. Capital has been expanding it's share of the profit, while labor has been left behind.
Most of the new jobs being created require an associate's degree or less. 85 percent of the population in the U.S. have at least a high school degree. Over 27 percent have a bachelor's. The percentage of high school and college graduates has increased since 2000. We have neither an unskilled nor an uneducated workforce. Education as a corrective to the employment problem seems minimally significant.
Technology has replaced jobs. This does not mean, as the 'job training' charlatans would imply, simple advances in automation automatically must equate to reductions in the workforce. Increases in productivity upon one variable in the production process can lead to increased needs for labor at another point in the process.
Historically, wages rose with productivity. It isn't an invisible hand or some magical market force pushing us along. It is conscious policy choice. The nanny state has become an inverse Robin Hood scheme. Rather than providing a safety net, ensuring that the least among us do not fall between the cracks, we now provide corporate welfare, ensuring asset price inflation.
We've transformed from a productive economy to an casino capitalism - filled with risk, speculation, and the endless pursuit of higher yields. Any downside is now covered by the public. This is alongside our funding of much of the research and development taking place, and other subsidization of many industries and sectors within the economy.
For Further Reading:
Debt Delusion
Economy Track
Job Crisis: Fact Sheet
Skills Crisis & Job Training
Unemployed Wait Longer For Jobs
There is only 1 job available for every 6 unemployed workers. So what exactly do these hucksters want people to retrain for? The economy continues to expand (even if that growth is slower). Workers have simply been cut off from the expansion. Capital has been expanding it's share of the profit, while labor has been left behind.
Most of the new jobs being created require an associate's degree or less. 85 percent of the population in the U.S. have at least a high school degree. Over 27 percent have a bachelor's. The percentage of high school and college graduates has increased since 2000. We have neither an unskilled nor an uneducated workforce. Education as a corrective to the employment problem seems minimally significant.
Technology has replaced jobs. This does not mean, as the 'job training' charlatans would imply, simple advances in automation automatically must equate to reductions in the workforce. Increases in productivity upon one variable in the production process can lead to increased needs for labor at another point in the process.
Historically, wages rose with productivity. It isn't an invisible hand or some magical market force pushing us along. It is conscious policy choice. The nanny state has become an inverse Robin Hood scheme. Rather than providing a safety net, ensuring that the least among us do not fall between the cracks, we now provide corporate welfare, ensuring asset price inflation.
We've transformed from a productive economy to an casino capitalism - filled with risk, speculation, and the endless pursuit of higher yields. Any downside is now covered by the public. This is alongside our funding of much of the research and development taking place, and other subsidization of many industries and sectors within the economy.
For Further Reading:
Debt Delusion
Economy Track
Job Crisis: Fact Sheet
Skills Crisis & Job Training
Unemployed Wait Longer For Jobs
Saturday, March 13, 2010
Tuesday, March 9, 2010
Trickle Up Economics
From Citizens For Tax Justice:
"Rep. Paul Ryan's GOP Budget Plan would collect $2 trillion less over a decade and yet require the bottom 90 percent to pay higher taxes."
"Rep. Paul Ryan's GOP Budget Plan would collect $2 trillion less over a decade and yet require the bottom 90 percent to pay higher taxes."
Sunday, March 7, 2010
May The Force Be With You
"The force of globalization can't be stopped," declares John Torinus in his latest Journal Sentinel rant. This type of thinking is typical of the business class. They believe in the magic of the market - an unstoppable force which always gravitates toward optimal outcomes. The problem with this paradigm is that it leads to a global race to the bottom, which ends up decreasing labor standards, while rewarding mobile capital.
He points to Mexico, and our trade relationship with them, and concludes it's a "major plus, a job creator." But, as I wrote in an earlier post, with the U.S. continually subsidizing farmers, we artificially lower the price of American agricultural exports and hurt developing countries. Such as Mexico, in one area where they can actually produce at a lower cost. Instead, our subsidized agri-business drives Mexican farmers off their land because of our low priced agricultural products. And, because of this, Mexican wages have actually fallen since NAFTA.
Torinus also claims, "Companies must go where the business is, not where you want it to be." So why are subsidies and tax breaks given out to lure companies? Just as the two Spanish companies (which Torinus mentions) whom are moving some operations to Milwaukee based on subsidies, not simply business nor competitive advantage (which Torinus doesn't mention).
I guess when one believes so blindly in a theory, which one also benefits and profits handsomely from, it's hard to let historical and empirical evidence get into the picture.
He points to Mexico, and our trade relationship with them, and concludes it's a "major plus, a job creator." But, as I wrote in an earlier post, with the U.S. continually subsidizing farmers, we artificially lower the price of American agricultural exports and hurt developing countries. Such as Mexico, in one area where they can actually produce at a lower cost. Instead, our subsidized agri-business drives Mexican farmers off their land because of our low priced agricultural products. And, because of this, Mexican wages have actually fallen since NAFTA.
Torinus also claims, "Companies must go where the business is, not where you want it to be." So why are subsidies and tax breaks given out to lure companies? Just as the two Spanish companies (which Torinus mentions) whom are moving some operations to Milwaukee based on subsidies, not simply business nor competitive advantage (which Torinus doesn't mention).
I guess when one believes so blindly in a theory, which one also benefits and profits handsomely from, it's hard to let historical and empirical evidence get into the picture.
Saturday, March 6, 2010
Off Track
Pat is back attacking rail transportation.
He finds buses to be a stellar alternative. McIlheran claims, "And taxpayers do not subsidize the tickets." Whom does he think pays for the roads that the buses travel on? He also spouts, "Building the [rail] line commits taxpayers to unbounded expense." Just as building more and more roads commits taxpayers to their maintenance. Not to mention the cost of our addiction to oil and the automobile.
For Further Reading:
All Aboard
Blood on the Tracks
Money For Nothing
Note To Critics: Roads, Freeways Subsidized, Too
Road Warriors
He finds buses to be a stellar alternative. McIlheran claims, "And taxpayers do not subsidize the tickets." Whom does he think pays for the roads that the buses travel on? He also spouts, "Building the [rail] line commits taxpayers to unbounded expense." Just as building more and more roads commits taxpayers to their maintenance. Not to mention the cost of our addiction to oil and the automobile.
For Further Reading:
All Aboard
Blood on the Tracks
Money For Nothing
Note To Critics: Roads, Freeways Subsidized, Too
Road Warriors
Industrial Policy
In the past the Journal Sentinel has referred to the downsizing of America's manufacturing base as "the inevitable consequence of capitalism an democracy."
But now, lawmakers should "act to bolster nation's industrial base."
Better late than never, I guess.
For Further Reading:
NAFTA and the Myth of Free Trade
Wall Street Wants A Free Lunch, Not A Free Market
But now, lawmakers should "act to bolster nation's industrial base."
Better late than never, I guess.
For Further Reading:
NAFTA and the Myth of Free Trade
Wall Street Wants A Free Lunch, Not A Free Market
Yes To Reconciliation
Why must the effort to pass health care "be genuinely bipartisan"?
Barack Obama won the election. He has a mandate to do the many things he promised during his campaign. If the Republicans want to be on the wrong side of history, that is their problem. To keep wasting time in the hope Republicans will suddenly manifest a conscience is counterproductive. The Democrats are trying to get important legislation and programs in place for the American people. They are not elected to massage Republican egos.
Republicans feel there is no role for government, other than as a piggy bank for their cronies financial speculation. Bipartisanship is not possible. The Republicans will obstruct anything the Democrats want to accomplish. In the fractured, money-driven, two-party system we have, reconciliation may be the only way to pass meaningful legislation.
For Further Reading:
Battling Tomorrows Misinformation Today
Health Reforms Next Step: 23rd Use of Reconciliation?
Historical Uses of Reconciliation
Using Reconciliation Process
Barack Obama won the election. He has a mandate to do the many things he promised during his campaign. If the Republicans want to be on the wrong side of history, that is their problem. To keep wasting time in the hope Republicans will suddenly manifest a conscience is counterproductive. The Democrats are trying to get important legislation and programs in place for the American people. They are not elected to massage Republican egos.
Republicans feel there is no role for government, other than as a piggy bank for their cronies financial speculation. Bipartisanship is not possible. The Republicans will obstruct anything the Democrats want to accomplish. In the fractured, money-driven, two-party system we have, reconciliation may be the only way to pass meaningful legislation.
For Further Reading:
Battling Tomorrows Misinformation Today
Health Reforms Next Step: 23rd Use of Reconciliation?
Historical Uses of Reconciliation
Using Reconciliation Process
Sunday, February 28, 2010
Blood on the Tracks
I've never been to Waterloo, and I'm sure its a quaint and beautiful town, but a high-speed rail line will not reduce property values and isolate neighborhoods, as a town alderwoman, Laura Cotting, states.
Mrs. Cotting, with typical NIMBYist attitude, is offering nothing but red herrings. Wisconsin's major metropolitan areas are one of only a few in the entire country that do not have some sort of regional rail transit. If Wisconsin's economic indicators - unemployment rate, job growth, etc. - were exceptionally better than the rest of the nation, such a belief may be justified. "They've all tried the rail thing, and they're doing worse than we are." But the opposite is actually the reality. Cities and regions which have instituted cohesive rail systems have seen the best and most stable growth.
John DeWitt, a developer offered his (misinformed) thought, "“Looking down the line there are so many different views on whether high-speed rail is good at all, and, to an extent, I think it’s hard to say.” The consensus is that rail is better for jobs, growth, and the environment.
Most of the country has actually decided rail is a good thing. And, most of the studies done on the subject have shown growth near transit stations and in the neighboring area, alongside increased property values.
For Further Reading:
Average Cost of Owning An Automobile
Economic Development & Smart Growth
Effect of Rail Transit on Property Values
Light Rail Can Turn Into Money Train
Milwaukee Needs to Lose Its Rail Phobia
Public Transportation Produces More Jobs
Trains and the City
Transit Oriented America
True Cost of Owning a Car
Why You're Better Off Not Owning A Car
Mrs. Cotting, with typical NIMBYist attitude, is offering nothing but red herrings. Wisconsin's major metropolitan areas are one of only a few in the entire country that do not have some sort of regional rail transit. If Wisconsin's economic indicators - unemployment rate, job growth, etc. - were exceptionally better than the rest of the nation, such a belief may be justified. "They've all tried the rail thing, and they're doing worse than we are." But the opposite is actually the reality. Cities and regions which have instituted cohesive rail systems have seen the best and most stable growth.
John DeWitt, a developer offered his (misinformed) thought, "“Looking down the line there are so many different views on whether high-speed rail is good at all, and, to an extent, I think it’s hard to say.” The consensus is that rail is better for jobs, growth, and the environment.
Most of the country has actually decided rail is a good thing. And, most of the studies done on the subject have shown growth near transit stations and in the neighboring area, alongside increased property values.
For Further Reading:
Average Cost of Owning An Automobile
Economic Development & Smart Growth
Effect of Rail Transit on Property Values
Light Rail Can Turn Into Money Train
Milwaukee Needs to Lose Its Rail Phobia
Public Transportation Produces More Jobs
Trains and the City
Transit Oriented America
True Cost of Owning a Car
Why You're Better Off Not Owning A Car
Sunday, February 21, 2010
Partisan Promotion
OK. So you're supposed to be a credible "think tank". Heck, even the Journal Sentinel, when citing your writing, always prefaces the Wisconsin Policy Research Institute as non-partisan.
Is it common, ethical, or non-partisan for a think tank to come out, years in advance, plugging their preferred candidate, and for president no less?
For Further Reading:
More Unbiased Reporting
Stink Tanks
Is it common, ethical, or non-partisan for a think tank to come out, years in advance, plugging their preferred candidate, and for president no less?
For Further Reading:
More Unbiased Reporting
Stink Tanks
Saturday, February 20, 2010
Walking Off A Cliff
Scott Walker's idea of governance seems to be simply getting rid of government. And, whatever is left of it, he wants those jobs to be low-paying, pension-free employment.
As our crumbling infrastructure will attest - you get what you pay for.
Walker's attempt at running Milwaukee County has been merely passing the buck and cutting services, while (in typical Republican style) claiming superior vision, leadership, and accomplishment.
As Steve Schultze wrote in the Journal Sentinel, "Walker...favored parceling out county functions to the state, municipalities, private firms and independently elected parks and transit districts." His idea of County governance is having someone else do the work. If governor, what entities would he have do the work of the State? Obviously he doesn't want to actually govern.
His latest proposal calls for replacing County pension plans with a 401(K) system for new employees. Let's ask those whom were planning on retiring in the last few years how their 401K's held up during the 2007 downturn. Some plans lost over half of their value due to the mismanagement of the economy by these same hucksters that claim privatization will save us all.
Just imagine: we're still operating in this casino capitalism economy; defined benefit (pension) plans are now defined contribution (401K) plans; Social Security has been privatized; and booms and busts are as regular as the sun rising and falling. During the next downturn, millions of would-be retirees would have to find work to supplement the huge losses of their 401Ks. This would be compounded by the losses of the privatized (market driven) Social Security accounts. A massive double whammy for would-be retirees. Such a roadmap - such a change in how we fund and care for our our retirees - would subject a majority of them to impoverishment. I hope the aged remember this when they vote for our next governor.
The whole looming budget crisis meme being pushed by Walker (and many other self-serving politicians and business leaders) would be laughable if so many living wage jobs weren't at stake. We seem to always find the money for private projects, yet supporting our citizens with good paying jobs is too much.
Public employment should be the floor - of labor standards - for the entire labor force. A living wage, decent health care, and the assurance of retirement after a certain period of service, should be the goals of all employment. The Walmartization of our workforce is a competitive disadvantage and a sure path to ruin. And that's the path Scott Walker wants us to join him on.
As our crumbling infrastructure will attest - you get what you pay for.
Walker's attempt at running Milwaukee County has been merely passing the buck and cutting services, while (in typical Republican style) claiming superior vision, leadership, and accomplishment.
As Steve Schultze wrote in the Journal Sentinel, "Walker...favored parceling out county functions to the state, municipalities, private firms and independently elected parks and transit districts." His idea of County governance is having someone else do the work. If governor, what entities would he have do the work of the State? Obviously he doesn't want to actually govern.
His latest proposal calls for replacing County pension plans with a 401(K) system for new employees. Let's ask those whom were planning on retiring in the last few years how their 401K's held up during the 2007 downturn. Some plans lost over half of their value due to the mismanagement of the economy by these same hucksters that claim privatization will save us all.
Just imagine: we're still operating in this casino capitalism economy; defined benefit (pension) plans are now defined contribution (401K) plans; Social Security has been privatized; and booms and busts are as regular as the sun rising and falling. During the next downturn, millions of would-be retirees would have to find work to supplement the huge losses of their 401Ks. This would be compounded by the losses of the privatized (market driven) Social Security accounts. A massive double whammy for would-be retirees. Such a roadmap - such a change in how we fund and care for our our retirees - would subject a majority of them to impoverishment. I hope the aged remember this when they vote for our next governor.
The whole looming budget crisis meme being pushed by Walker (and many other self-serving politicians and business leaders) would be laughable if so many living wage jobs weren't at stake. We seem to always find the money for private projects, yet supporting our citizens with good paying jobs is too much.
Public employment should be the floor - of labor standards - for the entire labor force. A living wage, decent health care, and the assurance of retirement after a certain period of service, should be the goals of all employment. The Walmartization of our workforce is a competitive disadvantage and a sure path to ruin. And that's the path Scott Walker wants us to join him on.
Weekend Reading
After Voting to Kill Recovery, 100 GOP Lawmakers Tout Its Success
As Milwaukee's Economy Fails, How Can Public Schools Succeed?
Budget Deficit Scare Story and the Great Recession
Distinguishing Fraud From Failure: A Prosecutorial Primer
Free Market in Free Fall and You Pay
How to Spot a Deficit Peacock
How to Walk the Fiscal Tightrope
Instead of Jobs Tax Credit, Let's Fix Our Infrastructure
Questions About The Coming Wave of Second Mortgage Writedowns
Rank Hypocrisy on Subsidies
Richest 400 Taxpayers See Incomes Double, Taxes Halved
Slapped in The Face By The Invisible Hand
Toyota Recalls: Another Bush Disaster
As Milwaukee's Economy Fails, How Can Public Schools Succeed?
Budget Deficit Scare Story and the Great Recession
Distinguishing Fraud From Failure: A Prosecutorial Primer
Free Market in Free Fall and You Pay
How to Spot a Deficit Peacock
How to Walk the Fiscal Tightrope
Instead of Jobs Tax Credit, Let's Fix Our Infrastructure
Questions About The Coming Wave of Second Mortgage Writedowns
Rank Hypocrisy on Subsidies
Richest 400 Taxpayers See Incomes Double, Taxes Halved
Slapped in The Face By The Invisible Hand
Toyota Recalls: Another Bush Disaster
Tuesday, February 16, 2010
Speaking of Tax Evasion
A truly horrible specimen of a person running for public office.
The 'lower taxes lead to job creation' claim is baloney.
And, don't forget it's the percentage of one's income paid in taxes (tax incidence) that matters (when trying to gauge the burden) not the total amount paid.
For Further Reading:
Corporate Scofflaws
Facts and Figures
Race To The Bottom
Tax Burden Illumination
Wisconsin Tax Truths
The 'lower taxes lead to job creation' claim is baloney.
And, don't forget it's the percentage of one's income paid in taxes (tax incidence) that matters (when trying to gauge the burden) not the total amount paid.
For Further Reading:
Corporate Scofflaws
Facts and Figures
Race To The Bottom
Tax Burden Illumination
Wisconsin Tax Truths
Sunday, February 14, 2010
More Corporate Tax Evasion
Edward Lump [what a fitting name], president and CEO of the Wisconsin Restaurant Association, in a recent Journal Sentinel article, rants against a proposed Wisconsin bill which he feels will threaten small business.
He throws out some small business stats, regurgitating the discredited idea whereby small business will save the day. "Small business employs more than 53% of Wisconsin's workforce and creates 75% of new jobs nationally," Lump claims without reference.
And then there is this dubious and confused claim, "Now more than ever, Wisconsin needs government that recognizes small business is a vital part of the local economy, not a bank from which it can withdraw seemingly endless funds. Instead of creating new taxes, shouldn't we look for ways to cut taxes so businesses can add jobs?"
Wisconsin government doesn't recognize the importance of small business? Where's the proof for this claim? Because small businesses are required to pay taxes, that supports the notion that Wisconsin doesn't appreciate small businesses role in our economy? Even if we cut taxes and save a small business, let's say, $5,000-annually, does Mr. Lump think that would really ignite a hiring flurry?
If that were the case, we'd never have recessions, nor would we ever experience anything other than full employment...since we've been cutting taxes since the '80s. Shouldn't the miracle market, combined with the elimination of so much taxation, have produced a Utopian wonderland by now?
But we know this 'full employment, stable economy' scenario has not been the result of the tax cut frenzy we've seen over the past few decades. So how can these hucksters, with a straight face, always claim cutting taxes is the answer.
Now we get to the bill - Assembly Bill 215 - which has made Mr. Lump so limp. The bill regards the valuation of billboards for assessment purposes and property taxation. Lump sees this as a threat to all small businesses. That's quite the leap of paranoid irrationality. [I found it very odd there were no citations nor even the name of the bill Mr. Lump finds so vexing in his article. But then one would be able to go read the bill and see the tenuousness of Mr. Lump's claims...and there would be no reason to print his article.]
He completely leaves out an explanation as to why valuation of billboards is an issue. He doesn't mention that if billboard owners pay their fair share of taxes on their property, the rest of us pay a little less. And, somehow, "There is nothing that would prevent cities from applying the same rules to other small businesses, such as restaurants."
The bill applies to, "...permits issued, leasehold interests, or other intangibles with regard to the outdoor off−premises advertising sign. In this subsection, “off−premises advertising sign” means a sign that does not advertise the business or activity that occurs on the site where the sign is located."
The State already has the ability to tax. If they wanted to tax restaurants more, they would. To paint this legislation as some type of nefarious, backdoor bill aimed at (in a very roundabout way) a tax increase on all businesses is fantasy. Again, if the state wanted to increase taxes on business they could. They wouldn't want the arduous legal battles involved in such assembly bills just for the fun of it.
To support his paranoia, Lump equates billboard valuation with valuing liquor and hunting licenses. He sarcastically squawks, "How would the value of a liquor license be determined? Would the assessment take into account the myriad variables that affect the profitability of a licensed establishment, or would it be one-size-fits-all? ... Think about how ridiculous it would be for the state to tax you on the "value" of your hunting permit...Or on the "value" of the deer you could potentially take home, whether you actually get a deer or not. Who knows what other licenses cities will decide to tax, once the state gives them this power?"
A billboard's value is in the income stream it can generate by exposing whatever it's advertising to more and more people. The reason for the bill - more specific legal language to capture the true value of billboards - is because they are quite different from the much simpler licenses Mr. Lump incorrectly, and purposefully misleadingly, tries to compare them to.
A hunting license doesn't produce an income stream to it's holder. It allows them to shoot a deer (catch a fish, etc.). A liquor license allows its holder to ship, manufacture, and import liquor. The hunter will pay taxes when he has the butcher process his deer. The liquor will be taxed when it is sold. These are direct links along the chain of commerce for these two examples which can be traced and taxed accordingly. When Clear Channel, CBS Outdoor, or Lamar (a few of the largest billboard companies) obtain an outdoor advertising permit for $175, this cost nowhere near reflects the income stream these companies expect to profit from such advertising.
As Dennis Hathaway comments at the Scenic America Blog, "The billboard companies fight tooth and nail against tax assessments that account for the value of anything other than the structure itself, but if one of their billboards has to be removed for a highway widening or other public works project, they will seek millions in compensation based on the value of the sign as a 'revenue' generator. This is a classic case of wanting it both ways, and hopefully governments will point that out in defending against these inevitable lawsuits."
And, maybe both of the fees on hunting and liquor licenses are too cheap, also. Granted, there is a point where costs become too prohibitive and potential users will stop buying the licenses. With the current value of billboards abysmally low (compared to their true market value), we're nowhere near the tipping point. Even with an increase in the taxes billboard owners will pay, not one of them will stop advertising on billboards...because they are all making more than enough money to justify the cost.
Just shut up and pay your fair share in taxes. So residents, workers, home-owners, and those not as fortunate can pay less.
He throws out some small business stats, regurgitating the discredited idea whereby small business will save the day. "Small business employs more than 53% of Wisconsin's workforce and creates 75% of new jobs nationally," Lump claims without reference.
And then there is this dubious and confused claim, "Now more than ever, Wisconsin needs government that recognizes small business is a vital part of the local economy, not a bank from which it can withdraw seemingly endless funds. Instead of creating new taxes, shouldn't we look for ways to cut taxes so businesses can add jobs?"
Wisconsin government doesn't recognize the importance of small business? Where's the proof for this claim? Because small businesses are required to pay taxes, that supports the notion that Wisconsin doesn't appreciate small businesses role in our economy? Even if we cut taxes and save a small business, let's say, $5,000-annually, does Mr. Lump think that would really ignite a hiring flurry?
If that were the case, we'd never have recessions, nor would we ever experience anything other than full employment...since we've been cutting taxes since the '80s. Shouldn't the miracle market, combined with the elimination of so much taxation, have produced a Utopian wonderland by now?
But we know this 'full employment, stable economy' scenario has not been the result of the tax cut frenzy we've seen over the past few decades. So how can these hucksters, with a straight face, always claim cutting taxes is the answer.
Now we get to the bill - Assembly Bill 215 - which has made Mr. Lump so limp. The bill regards the valuation of billboards for assessment purposes and property taxation. Lump sees this as a threat to all small businesses. That's quite the leap of paranoid irrationality. [I found it very odd there were no citations nor even the name of the bill Mr. Lump finds so vexing in his article. But then one would be able to go read the bill and see the tenuousness of Mr. Lump's claims...and there would be no reason to print his article.]
He completely leaves out an explanation as to why valuation of billboards is an issue. He doesn't mention that if billboard owners pay their fair share of taxes on their property, the rest of us pay a little less. And, somehow, "There is nothing that would prevent cities from applying the same rules to other small businesses, such as restaurants."
The bill applies to, "...permits issued, leasehold interests, or other intangibles with regard to the outdoor off−premises advertising sign. In this subsection, “off−premises advertising sign” means a sign that does not advertise the business or activity that occurs on the site where the sign is located."
The State already has the ability to tax. If they wanted to tax restaurants more, they would. To paint this legislation as some type of nefarious, backdoor bill aimed at (in a very roundabout way) a tax increase on all businesses is fantasy. Again, if the state wanted to increase taxes on business they could. They wouldn't want the arduous legal battles involved in such assembly bills just for the fun of it.
To support his paranoia, Lump equates billboard valuation with valuing liquor and hunting licenses. He sarcastically squawks, "How would the value of a liquor license be determined? Would the assessment take into account the myriad variables that affect the profitability of a licensed establishment, or would it be one-size-fits-all? ... Think about how ridiculous it would be for the state to tax you on the "value" of your hunting permit...Or on the "value" of the deer you could potentially take home, whether you actually get a deer or not. Who knows what other licenses cities will decide to tax, once the state gives them this power?"
A billboard's value is in the income stream it can generate by exposing whatever it's advertising to more and more people. The reason for the bill - more specific legal language to capture the true value of billboards - is because they are quite different from the much simpler licenses Mr. Lump incorrectly, and purposefully misleadingly, tries to compare them to.
A hunting license doesn't produce an income stream to it's holder. It allows them to shoot a deer (catch a fish, etc.). A liquor license allows its holder to ship, manufacture, and import liquor. The hunter will pay taxes when he has the butcher process his deer. The liquor will be taxed when it is sold. These are direct links along the chain of commerce for these two examples which can be traced and taxed accordingly. When Clear Channel, CBS Outdoor, or Lamar (a few of the largest billboard companies) obtain an outdoor advertising permit for $175, this cost nowhere near reflects the income stream these companies expect to profit from such advertising.
As Dennis Hathaway comments at the Scenic America Blog, "The billboard companies fight tooth and nail against tax assessments that account for the value of anything other than the structure itself, but if one of their billboards has to be removed for a highway widening or other public works project, they will seek millions in compensation based on the value of the sign as a 'revenue' generator. This is a classic case of wanting it both ways, and hopefully governments will point that out in defending against these inevitable lawsuits."
And, maybe both of the fees on hunting and liquor licenses are too cheap, also. Granted, there is a point where costs become too prohibitive and potential users will stop buying the licenses. With the current value of billboards abysmally low (compared to their true market value), we're nowhere near the tipping point. Even with an increase in the taxes billboard owners will pay, not one of them will stop advertising on billboards...because they are all making more than enough money to justify the cost.
Just shut up and pay your fair share in taxes. So residents, workers, home-owners, and those not as fortunate can pay less.
Saturday, February 13, 2010
Road To Perdition
More Journal Sentinel boosterism for Paul Ryan's nonsense.
"We're not certain it leads to where Ryan says it does, but it at least represents an honest attempt at serious discussion."
Um...no, it doesn't.
"We're not certain it leads to where Ryan says it does, but it at least represents an honest attempt at serious discussion."
Um...no, it doesn't.
Venturing Aimlessly
John Torinus, Journal Sentinel conservative business writer, loves to ramble on and on about entrepreneurship being a boon to the economy. Many of the same mindset also spout off about the magic of venture capital. In a recent editorial, the Journal Sentinel jumps onto the "venture capital is the answer to growing the economy" bandwagon.
"Money is the fertilizer that young companies need to grow." And, supposedly we don't have enough money. Yet, MoneyTree, a source they cite, reports venture capital grew from $2.9 million in Q1 2009 to $8.3 million in Q4.
The Midwest received $160 million in Q4 2009, garnered 3.18 percent of all venture capital for the quarter, and totaled 63 deals. The median representative percentage among all regions was 3.34. The median number of deals was 30.
Wisconsin had 4 deals in the 4th quarter of 2009; the median number of deals among all states was 5 (this number includes California, which had 323).
Yet, the editorial then claims, "Businesses usually are hatched with the help of money from friends and family." So, does that mean we just need better paying jobs, to allow family and friends the ability to fund more ventures?
The editorial continues, "This matters because venture capital is a proxy for the future economic health of a region; venture investors are adept at identifying companies with the best chance of growing and producing jobs and tax revenue. There is a correlation between income in a state and the amount of venture capital a state attracts."
Josh Lerner, of Harvard, has found the number of exceptional venture capitalists is very small. Harold Bradley, of the Kaufmann Foundation, believes venture capitalists have plenty of money, but allocate it very inefficiently, and therefore should not be receiving additional public dollars with the hope of boosting a local economy. Bradley and Carl Schramm, in an article for Business Week, write that the current focus on fees has promoted start-up flipping rather than nurturing.
In the end, venture capital amounts to one very small component of the overall capital market. An effort to attract more dollars to boost our local economy is desirable, but to what extent we should see venture capital as the goose that lays the golden egg is debatable.
"Money is the fertilizer that young companies need to grow." And, supposedly we don't have enough money. Yet, MoneyTree, a source they cite, reports venture capital grew from $2.9 million in Q1 2009 to $8.3 million in Q4.
The Midwest received $160 million in Q4 2009, garnered 3.18 percent of all venture capital for the quarter, and totaled 63 deals. The median representative percentage among all regions was 3.34. The median number of deals was 30.
Wisconsin had 4 deals in the 4th quarter of 2009; the median number of deals among all states was 5 (this number includes California, which had 323).
Yet, the editorial then claims, "Businesses usually are hatched with the help of money from friends and family." So, does that mean we just need better paying jobs, to allow family and friends the ability to fund more ventures?
The editorial continues, "This matters because venture capital is a proxy for the future economic health of a region; venture investors are adept at identifying companies with the best chance of growing and producing jobs and tax revenue. There is a correlation between income in a state and the amount of venture capital a state attracts."
Josh Lerner, of Harvard, has found the number of exceptional venture capitalists is very small. Harold Bradley, of the Kaufmann Foundation, believes venture capitalists have plenty of money, but allocate it very inefficiently, and therefore should not be receiving additional public dollars with the hope of boosting a local economy. Bradley and Carl Schramm, in an article for Business Week, write that the current focus on fees has promoted start-up flipping rather than nurturing.
In the end, venture capital amounts to one very small component of the overall capital market. An effort to attract more dollars to boost our local economy is desirable, but to what extent we should see venture capital as the goose that lays the golden egg is debatable.
Friday, February 12, 2010
The (Coming) Razings
"The White House says 'Both programs [Save America's Treasures and Preserve America] lack rigorous performance metrics and evaluation efforts so the benefits are unclear.' ... Except that isn't true, there are performance metrics, that prove that the programs created jobs at 1/18th the cost of last year's stimulus programs."
Obama Cancels Building Restoration Programs.
For some to still claim Barack Obama is a socialist, or even a liberal, they really haven't been paying attention. Barack has acquiesced to the Rubin Wall Street cabal in record-breaking, Olympic fashion. The pettiness and mean-spiritedness of these budget cut items (as well as many others) are slaps in the face of the "liberals" that mobilized in record numbers and got President Obama elected.
The conciliation and/or foot-dragging by the Obama Administration is thoroughly disappointing.
For Further Reading:
Congress Will Pay For What It Spends
Democracy Now: Robert Kuttner & Michael Hudson on the Obama Adminsitration
Obama Loves Business
Obama Shares Wall Street's Delusions
Wall Street's Killer Instinct Spells Death Knell For Jobs
What Does The Prez Stand For?
Obama Cancels Building Restoration Programs.
For some to still claim Barack Obama is a socialist, or even a liberal, they really haven't been paying attention. Barack has acquiesced to the Rubin Wall Street cabal in record-breaking, Olympic fashion. The pettiness and mean-spiritedness of these budget cut items (as well as many others) are slaps in the face of the "liberals" that mobilized in record numbers and got President Obama elected.
The conciliation and/or foot-dragging by the Obama Administration is thoroughly disappointing.
For Further Reading:
Congress Will Pay For What It Spends
Democracy Now: Robert Kuttner & Michael Hudson on the Obama Adminsitration
Obama Loves Business
Obama Shares Wall Street's Delusions
Wall Street's Killer Instinct Spells Death Knell For Jobs
What Does The Prez Stand For?
The Repackaging
Privatize Social Security, voucher-ize Medicare, cut taxes, ...
Sound familiar? The Republicans, and their latest rebranding posterboy - Paul Ryan, are trying to sell the same worn out, discredited ideas as the cure for what ails us.
"It’s not just the fact that Republicans are now posing as staunch defenders of a program they have hated ever since the days when Ronald Reagan warned that Medicare would destroy America’s freedom."
"Mr. Ryan offers a plan for Social Security privatization that is basically identical to the Bush proposals of five years ago."
"...the crusade against health reform has relied, crucially, on utter hypocrisy: Republicans who hate Medicare, tried to slash Medicare in the past, and still aim to dismantle the program over time, have been scoring political points by denouncing proposals for modest cost savings"
Paul Krugman has more here.
Sound familiar? The Republicans, and their latest rebranding posterboy - Paul Ryan, are trying to sell the same worn out, discredited ideas as the cure for what ails us.
"It’s not just the fact that Republicans are now posing as staunch defenders of a program they have hated ever since the days when Ronald Reagan warned that Medicare would destroy America’s freedom."
"Mr. Ryan offers a plan for Social Security privatization that is basically identical to the Bush proposals of five years ago."
"...the crusade against health reform has relied, crucially, on utter hypocrisy: Republicans who hate Medicare, tried to slash Medicare in the past, and still aim to dismantle the program over time, have been scoring political points by denouncing proposals for modest cost savings"
Paul Krugman has more here.
Sunday, February 7, 2010
Growing Pains
James Rowen, at the Political Environment, has covered, in detail and with clarity, the expensive, sprawl-encouraging, Waukesha water diversion proposal. He also critiques the unthinking and misguided Journal Sentinel editorial page's support for such exurban development. Though the editorial does mention an environmental impact study, this seems more an obstacle than a true concern. There is no sense of caution for the underlying environmental issues. Growth is good, keep the sprawl train moving.
The editorial page's boosterism is surreal. They state the water diversion must be studied and done carefully. Yet, in their closing, "Growth in the region helps the entire region. And making sure Waukesha has a safe water source should be in everyone's interest." Basically, let's go through the steps, but, in the end, let's find a way to keep growing at the edges.
If only the Journal Sentinel were full of such vigor in pushing for improvements and pointing out the strengths of the City. How about editorializing for an more integrated public transportation system connecting inner-city poor with suburban job growth? What's good for the City is good for the region, too.
Encouraging enclaves of segregated growth only increases income inequality and solidifies the isolation between suburb and city.
For Further Reading:
More Suburban Shopping Lifestyle
The Suburbanization of Poverty
The editorial page's boosterism is surreal. They state the water diversion must be studied and done carefully. Yet, in their closing, "Growth in the region helps the entire region. And making sure Waukesha has a safe water source should be in everyone's interest." Basically, let's go through the steps, but, in the end, let's find a way to keep growing at the edges.
If only the Journal Sentinel were full of such vigor in pushing for improvements and pointing out the strengths of the City. How about editorializing for an more integrated public transportation system connecting inner-city poor with suburban job growth? What's good for the City is good for the region, too.
Encouraging enclaves of segregated growth only increases income inequality and solidifies the isolation between suburb and city.
For Further Reading:
More Suburban Shopping Lifestyle
The Suburbanization of Poverty
Saturday, February 6, 2010
The Sky is Falling
Paul Ryan is wrong again. And, as usual, the Journal Sentinel is spreading his drivel.
Paul Krugman addressed and debunked these fiscal fallacies and scare-tactics (such as those Paul Ryan purveys) in his latest column.
The economy is, historically, worse under Republican administrations. When conservatives are in power: deficits increase, wage-growth slows, and general socio-economic indicators worsen.
It's time we stop listening to these free market, government-is-the-problem, snake-oil salesmen whose only track-record is failure.
Paul Krugman addressed and debunked these fiscal fallacies and scare-tactics (such as those Paul Ryan purveys) in his latest column.
The economy is, historically, worse under Republican administrations. When conservatives are in power: deficits increase, wage-growth slows, and general socio-economic indicators worsen.
It's time we stop listening to these free market, government-is-the-problem, snake-oil salesmen whose only track-record is failure.
Basket Case
The sales tax used to help pay for Miller Park may be extended past it's 2014 sunset date to pay for Bradley Center replacement or renovations.
These money losers - stadiums, convention centers, etc. - always have boosters and proponents pushing for the use of public dollars to fund such private playgrounds. In such instances, these normally government-averse, anti-tax crusaders, become big government supporters and partners. Suddenly government spending is a good thing that will create jobs and be an economic catalyst for the region. Or so the well-worn story goes. In the majority of cases, the reality is just the opposite.
These stadium subsidizers are against well-paid public employees, a well-funded public transportation system, or a targeted tax to pay for park system maintenance. But hundreds of millions for a sports stadium, that's a wise investment? Which of these investments returns more to a city or region long-term? Seasonal, retail/entertainment establishments? Or the infrastructure and amenities that citizens and businesses count on in everyday life?
For Further Reading:
Bucks Need New Arena
Miller Pork
Misplaced Priorities
New Kings Arena Would Add 229 Permanent Jobs
Sales Tax Ending Between 2015, '18
Stadium Rip-off(s)
Stadium Swindle
Will A New Soccer Stadium Help or Hurt the Bucks?
Yanking Away Taxpayer Dollars
These money losers - stadiums, convention centers, etc. - always have boosters and proponents pushing for the use of public dollars to fund such private playgrounds. In such instances, these normally government-averse, anti-tax crusaders, become big government supporters and partners. Suddenly government spending is a good thing that will create jobs and be an economic catalyst for the region. Or so the well-worn story goes. In the majority of cases, the reality is just the opposite.
These stadium subsidizers are against well-paid public employees, a well-funded public transportation system, or a targeted tax to pay for park system maintenance. But hundreds of millions for a sports stadium, that's a wise investment? Which of these investments returns more to a city or region long-term? Seasonal, retail/entertainment establishments? Or the infrastructure and amenities that citizens and businesses count on in everyday life?
For Further Reading:
Bucks Need New Arena
Miller Pork
Misplaced Priorities
New Kings Arena Would Add 229 Permanent Jobs
Sales Tax Ending Between 2015, '18
Stadium Rip-off(s)
Stadium Swindle
Will A New Soccer Stadium Help or Hurt the Bucks?
Yanking Away Taxpayer Dollars
Sunday, January 31, 2010
Insanity*
The Journal Sentinel reports, Cabela's lures little retail growth.
Our economic development paradigm - of subsidizing retail, conventions, stadiums, etc. - is a stupendous waste of money. Yet even though the Journal reports on the failure of these schemes, just as they reported on the failure of privatization, nevertheless, I expect to see articles in the near future touting the need for public subsidization of private developments and supporting the privatization of public jobs.
* Insanity: doing the same thing over and over and expecting different results.
Our economic development paradigm - of subsidizing retail, conventions, stadiums, etc. - is a stupendous waste of money. Yet even though the Journal reports on the failure of these schemes, just as they reported on the failure of privatization, nevertheless, I expect to see articles in the near future touting the need for public subsidization of private developments and supporting the privatization of public jobs.
* Insanity: doing the same thing over and over and expecting different results.
Pushing On A String
John Torinus has penned another misguided and misinformed piece, Entrepreneurs, rather than government, will help create jobs, for the Journal Sentinel.
I've already taken Torinus to task for his fictitious claims regarding small businesses and job creation. His latest drivel is merely a variation of the same theme.
He also uses this most recent column, in a very roundabout way, to bring it all back to a classic right-wing panacea - the business climate. Which, to translate from Republican, means lower taxes. Another topic on which I've had the pleasure of throttling Torinus and his mistaken ideas.
The most glaring error in Torinus' latest mess is his obliviousness to our current recession. Spewing on about entrepreneurs opening new businesses and creating jobs is a cliched though plausible suggestion in a normally functioning economy. In the midst of a recession, with lending contracted, and extremely reduced demand, such a proposition is preposterous.
I've already taken Torinus to task for his fictitious claims regarding small businesses and job creation. His latest drivel is merely a variation of the same theme.
He also uses this most recent column, in a very roundabout way, to bring it all back to a classic right-wing panacea - the business climate. Which, to translate from Republican, means lower taxes. Another topic on which I've had the pleasure of throttling Torinus and his mistaken ideas.
The most glaring error in Torinus' latest mess is his obliviousness to our current recession. Spewing on about entrepreneurs opening new businesses and creating jobs is a cliched though plausible suggestion in a normally functioning economy. In the midst of a recession, with lending contracted, and extremely reduced demand, such a proposition is preposterous.
Saturday, January 30, 2010
Suburbs Under Attack
In the latest issue of The American (The Journal of the American Enterprise Institute), Joel Kotkin - ever more so, a delusional apologist for suburbia - writes about a War Against Suburbia.
In what can only be described as ultra-paranoid, Kotkin talks of the Obama administration as an "urban-centric regime." "The suburbs are under a conscious and sustained attack from Washington," declares Kotkin. The President is trying to impose an urban agenda on America? Or, as Kotkin puts it, "A deep-seated desire to change the way Americans live."
He rewrites suburban history as simply people voting with their feet. He mentions nothing about this being an auto-centric and unsustainable lifestyle. He mentions nothing regarding government and business outright pushing/subsidizing people out of the city. He appears unaware of the water problems many of these developments face.
Never does Kotkin address the fundamental critiques of suburbia as relating to long-term, sustainability. His defense is that of anecdote. Everything wrapped in an - gosh-golly; Leave it to Beaver; the people like their SUVs, highways, and stripmalls, and so it must be - attitude. The growth of suburbia has been present for the past 50 years and therefore it must be a natural process. He doesn't seem to realize that, just as the suburbs were encouraged, they can be discouraged. There is nothing in our DNA that hard-wires us toward low-density living.
And, his magical solution to congestion - telecommuting. Yes, everyone can just work from home. This is part of Kotkin's reasoning whereby "technology will undermine much of the green case against suburbia." We can slowly move our working environment to the home office. This would not do wonders for a sense of community, relieving isolation, nor the retail businesses located in business districts, which depend on the agglomeration of workers each day for their livelihood.
In what can only be described as ultra-paranoid, Kotkin talks of the Obama administration as an "urban-centric regime." "The suburbs are under a conscious and sustained attack from Washington," declares Kotkin. The President is trying to impose an urban agenda on America? Or, as Kotkin puts it, "A deep-seated desire to change the way Americans live."
He rewrites suburban history as simply people voting with their feet. He mentions nothing about this being an auto-centric and unsustainable lifestyle. He mentions nothing regarding government and business outright pushing/subsidizing people out of the city. He appears unaware of the water problems many of these developments face.
Never does Kotkin address the fundamental critiques of suburbia as relating to long-term, sustainability. His defense is that of anecdote. Everything wrapped in an - gosh-golly; Leave it to Beaver; the people like their SUVs, highways, and stripmalls, and so it must be - attitude. The growth of suburbia has been present for the past 50 years and therefore it must be a natural process. He doesn't seem to realize that, just as the suburbs were encouraged, they can be discouraged. There is nothing in our DNA that hard-wires us toward low-density living.
And, his magical solution to congestion - telecommuting. Yes, everyone can just work from home. This is part of Kotkin's reasoning whereby "technology will undermine much of the green case against suburbia." We can slowly move our working environment to the home office. This would not do wonders for a sense of community, relieving isolation, nor the retail businesses located in business districts, which depend on the agglomeration of workers each day for their livelihood.
Frozen Hope
President Obama's spending freeze idea is terrible. The economy is still in horrible shape. We should not be worried about inflation and we should be spending more.
For Further Reading:
A First Look At The Budget Freeze
Don't Let America's Red Ink Scare You
Spending Freeze Could Spell Disaster
Why Young People Should Want A Deficit Now
For Further Reading:
A First Look At The Budget Freeze
Don't Let America's Red Ink Scare You
Spending Freeze Could Spell Disaster
Why Young People Should Want A Deficit Now
Sunday, January 24, 2010
Poor Population Increases Over 15 Percent
During the Bush era, the number of persons living in poverty increased 15.4 percent.
All Things Economic
Poor Warren Buffet, he's upset that Obama wants to tax his ill-gotten gains.
Consumer debt - pushed by are easy-money, predatory lending, and our commercialized society - is out of control.
Dean Baker shows that the abilities of Treasury Secretary Tim Geithner and National Economic Council head Larry Summers to avoid a complete financial collapse really was not that extraordinary. No major country had a complete financial collapse.
Joseph Stiglitz, Nobel laureate and economics professor, thinks banks have failed at their basic societal mission.
Consumer debt - pushed by are easy-money, predatory lending, and our commercialized society - is out of control.
Dean Baker shows that the abilities of Treasury Secretary Tim Geithner and National Economic Council head Larry Summers to avoid a complete financial collapse really was not that extraordinary. No major country had a complete financial collapse.
Joseph Stiglitz, Nobel laureate and economics professor, thinks banks have failed at their basic societal mission.
Bush Era Errors
Lest we forget, this is not Barack Obama's economy, he did not start two wars (although, sadly, he does continue them), he did not push huge tax cuts in times of incredible spending, and he did not take a budget from surplus to deficit. President Obama simply had the unfortunate timing of following the worst president in the history of the U.S.
Remember the Bush administration lost $12 billion, being delivered on pallets, in Iraq. Plus, the Iraq war, overall, will cost us over $3 trillion.
Bush also increased spending faster than any other president in the last 30 years.
The Republican tax cut strategy, again, failed to deliver.
Bush's policies are also responsible for the majority of our deficits.
And, let's not forget the warnings the Bush administration ignored before the 9/11 attack.
For Further Reading:
Please Call Out Conservatism For The Disaster It Is
Remember the Bush administration lost $12 billion, being delivered on pallets, in Iraq. Plus, the Iraq war, overall, will cost us over $3 trillion.
Bush also increased spending faster than any other president in the last 30 years.
The Republican tax cut strategy, again, failed to deliver.
Bush's policies are also responsible for the majority of our deficits.
And, let's not forget the warnings the Bush administration ignored before the 9/11 attack.
For Further Reading:
Please Call Out Conservatism For The Disaster It Is
Saturday, January 23, 2010
Nowhere Else To Go
Crooks and Liars reports that Andy Stern, the head of SEIU, has warned Congress and the administration, if they falter with health care reform, they can forget about Labor's support during the midterms.
Really?
If not the Democrats, who else is Labor going to vote for?
Republicans? Sorry, but they really, really are against health care reform.
Yet another problem of our money-driven, two-party system.
Really?
If not the Democrats, who else is Labor going to vote for?
Republicans? Sorry, but they really, really are against health care reform.
Yet another problem of our money-driven, two-party system.
Government For Sale
Bush Backed Supreme Court Thinks Corporations Are People Too
Campaign Finance Decision Worst Since Dred Scott
Campaign Finance Reform Reflect Supreme Courts Growing Audacity
Shed A Tear For Our Democracy
Supreme Court's Radical and Destructive Decision
Supreme Court Ruling Means Big Business Can Spend Billions
The Court's Blow To Democracy
The Man Who Took Down Campaign Finance Reform
Will Corporate Ads Buy 2010 Voters?
Campaign Finance Decision Worst Since Dred Scott
Campaign Finance Reform Reflect Supreme Courts Growing Audacity
Shed A Tear For Our Democracy
Supreme Court's Radical and Destructive Decision
Supreme Court Ruling Means Big Business Can Spend Billions
The Court's Blow To Democracy
The Man Who Took Down Campaign Finance Reform
Will Corporate Ads Buy 2010 Voters?
Friday, January 22, 2010
Doing Nothing, Destroying Everything
Stephen Colbert explains the media coverage of President Obama. More precisely, the biased conservative coverage.
Jon Stewart gives perspective to the Massachusetts (not national!) election. (Colbert weighs in on the Massachusetts election.) Here Stewart explains Wall Street bonuses.
For Further Reading:
Brown's Victory is Hardly a Repudiation of Health Care Reform
Jon Stewart gives perspective to the Massachusetts (not national!) election. (Colbert weighs in on the Massachusetts election.) Here Stewart explains Wall Street bonuses.
For Further Reading:
Brown's Victory is Hardly a Repudiation of Health Care Reform
Monday, January 18, 2010
Heard It Before
Scott Walker claims (again!) privatization is the answer. I will literally fall out of my chair the day a conservative actually utters an original idea (rather than merely regurgitating the same old, worn-out Republican talking-points).
This claim has been debunked (here and here) before. Even the Journal Sentinel has found, in the majority of cases, contracting work to private sources has no cost savings.
Scott Walker is also a bigger spender than those bleeding-heart liberals, Mayor Tom Barrett and Governor Jim Doyle - a fact probably unbeknownst to most local media readers. The tax levy on Milwaukee County has increased $45 million over the Walker tenure.
This claim has been debunked (here and here) before. Even the Journal Sentinel has found, in the majority of cases, contracting work to private sources has no cost savings.
Scott Walker is also a bigger spender than those bleeding-heart liberals, Mayor Tom Barrett and Governor Jim Doyle - a fact probably unbeknownst to most local media readers. The tax levy on Milwaukee County has increased $45 million over the Walker tenure.
Don't Stop Believing
PBS recently broadcast Milwaukee Water 2015. Mike Gousha spoke with Mayor Tom Barrett and UWM chancellor Carlos Santiago regarding Milwaukee's water hub endeavor and economic development, in general.
Dr. Santiago expressed the opinion that anyone disagreeing with/questioning the "Milwaukee as a water hub" meme was not being helpful and is a pessimist who believes Milwaukee can't "turn it around."
It's not that such initiatives have not worked in the majority of other cases and therefore some are skeptical of Milwaukee/UWM putting all their eggs in this one basket. No, that's not it. These doubters just don't have hope. They don't believe in Milwaukee. They're unwilling to take a chance on Milwaukee.
Is this really the debate? Hope-ers versus Doubt-ers? Or is chancellor Santiago using childish smear tactics to avoid the well-supported critiques of the skeptics. He appears to be attacking the messengers and not their message.
It doesn't matter to Santiago that such initiatives don't work more often than they do work.
Maybe we should have a broader investment initiative, rather than just a few magic bullets prefaced on hope.
[I do agree with a Mayor Barrett regarding a framing issue: we should be labeling ourselves The Fresh Coast rather than allowing others to call us The Rust Belt.]
For Further Reading:
Colleges: Cash Cows?
Save Our City
Watering Down Corporate Accountability
Dr. Santiago expressed the opinion that anyone disagreeing with/questioning the "Milwaukee as a water hub" meme was not being helpful and is a pessimist who believes Milwaukee can't "turn it around."
It's not that such initiatives have not worked in the majority of other cases and therefore some are skeptical of Milwaukee/UWM putting all their eggs in this one basket. No, that's not it. These doubters just don't have hope. They don't believe in Milwaukee. They're unwilling to take a chance on Milwaukee.
Is this really the debate? Hope-ers versus Doubt-ers? Or is chancellor Santiago using childish smear tactics to avoid the well-supported critiques of the skeptics. He appears to be attacking the messengers and not their message.
It doesn't matter to Santiago that such initiatives don't work more often than they do work.
Maybe we should have a broader investment initiative, rather than just a few magic bullets prefaced on hope.
[I do agree with a Mayor Barrett regarding a framing issue: we should be labeling ourselves The Fresh Coast rather than allowing others to call us The Rust Belt.]
For Further Reading:
Colleges: Cash Cows?
Save Our City
Watering Down Corporate Accountability
Private Gain, Public Pain
Two recent articles [below] highlight the misguided efforts of entrepreneurializing government and public agencies. If we all act like a business, worship the market, and strive for bloated profits, all will be right with the world.
This snake-oil has caused us to believe public goods and infrastructure no longer matter. Everyone and everything must compete.
And, for some reason, we keep banging our collective head against this wall even though it has increased volatility and risk, while concentrating gains among a select few and leaving the increasing loses the responsibility of the taxpayers.
For Further Reading:
Public Benefits, Taxpayer Pain
The New Threat From Wall Street
This snake-oil has caused us to believe public goods and infrastructure no longer matter. Everyone and everything must compete.
And, for some reason, we keep banging our collective head against this wall even though it has increased volatility and risk, while concentrating gains among a select few and leaving the increasing loses the responsibility of the taxpayers.
For Further Reading:
Public Benefits, Taxpayer Pain
The New Threat From Wall Street
Worth
The Journal Sentinel wants to know, How much is a mayor worth?
I hope they'll be following this up with an analysis of private-sector executive compensation and company performance. Many of which also receive public monies in the form of tax breaks, exemptions, and subsidies.
I hope they'll be following this up with an analysis of private-sector executive compensation and company performance. Many of which also receive public monies in the form of tax breaks, exemptions, and subsidies.
China Bubble?
Is China a bubble? One of Wall Street's most successful money managers (and also a native of Milwaukee) thinks so.
The Compensation Quackery
We're told bankers, executives, and financiers must receive huge sums of compensation to ensure the brightest and most talented are growing our economy. (Regardless of whether or not they are growing the economy or their company.)
Yet, as Neil Irwin reports in the Washington Post, "the Fed's earnings for the year will dwarf those of the large banks, easily topping the expected profits of Bank of America, Goldman Sachs and J.P. Morgan Chase combined."
And what staggering sum was Ben Bernanke, Federal Reserve chairman, paid for earning such a stellar return for the public? To keep such talent working for the Federal Government we must be paying tens of millions of dollars. Right?
Dr. Bernanke makes $199,700.
Now what excuse will these overpaid hucksters claim to justify their ill-gotten gains?
Yet, as Neil Irwin reports in the Washington Post, "the Fed's earnings for the year will dwarf those of the large banks, easily topping the expected profits of Bank of America, Goldman Sachs and J.P. Morgan Chase combined."
And what staggering sum was Ben Bernanke, Federal Reserve chairman, paid for earning such a stellar return for the public? To keep such talent working for the Federal Government we must be paying tens of millions of dollars. Right?
Dr. Bernanke makes $199,700.
Now what excuse will these overpaid hucksters claim to justify their ill-gotten gains?
Monday, January 4, 2010
Sunday, January 3, 2010
Neighbors Be Gone
Pat, move to the suburbs already. I've never seen someone, who works for Milwaukee's newspaper and lives in Milwaukee, write so much about the wonderful suburbs.
His latest defense claims suburbs are transforming themselves into quasi-urban locations through "innovative" subdivision developers. McIlheran's hero in this suburban quest is Rick Harrison, of suburban Minneapolis.
Mr. Harrison revealed his development philosophy, "People don't want to walk five minutes to a park. They want to see it outside their window. And they don't want to see their neighbors and they don't want to sit on their porch all day." Yeah! The dream of suburbia is having a park for a back yard, never seeing another human near one's home, and porch-less facades as far as the eye can see. What a wonderful community. Can't you feel the love?
But there you have it: like big, overgrown babies, the Harrisons and McIlherans of the world feel they should be able to live as they please, screw everyone else! They've had it up to here with all these rules!
The point - of conservation, environmental awareness, density, etc. - is to end sprawl and growth in the suburbs, not to just green over such misplaced development.
These Pollyannas with their heads in the sand, when will they learn? Even though you put lipstick on a pig, it's still a pig.
His latest defense claims suburbs are transforming themselves into quasi-urban locations through "innovative" subdivision developers. McIlheran's hero in this suburban quest is Rick Harrison, of suburban Minneapolis.
Mr. Harrison revealed his development philosophy, "People don't want to walk five minutes to a park. They want to see it outside their window. And they don't want to see their neighbors and they don't want to sit on their porch all day." Yeah! The dream of suburbia is having a park for a back yard, never seeing another human near one's home, and porch-less facades as far as the eye can see. What a wonderful community. Can't you feel the love?
But there you have it: like big, overgrown babies, the Harrisons and McIlherans of the world feel they should be able to live as they please, screw everyone else! They've had it up to here with all these rules!
The point - of conservation, environmental awareness, density, etc. - is to end sprawl and growth in the suburbs, not to just green over such misplaced development.
These Pollyannas with their heads in the sand, when will they learn? Even though you put lipstick on a pig, it's still a pig.
Friday, January 1, 2010
Tax Injustice
David Cay Johnston wonders, Is Our Tax System Helping Us Create Wealth? [hat tip Economist's View]
Tax Justice
More stellar research and analysis from Citizens for Tax Justice:
Bush tax cuts cost two and a half times as much as House Democrats' health care proposal
Multinational Corporate Tax Abuses
Principles for Tax Reform
Spending Program Buried Within Tax Code
Why We Need A Strong Estate Tax
Bush tax cuts cost two and a half times as much as House Democrats' health care proposal
Multinational Corporate Tax Abuses
Principles for Tax Reform
Spending Program Buried Within Tax Code
Why We Need A Strong Estate Tax
The Cost of Quality
There is a wolf at the door. But not the County budgetary wolf the Journal Sentinel invokes. The wolves are the scofflaws who refuse to pay their fair share of taxes.
We've cut ourselves into diminished services leading to pothole-filled roads, fewer libraries and parks, and fewer public transportation routes. Thus a lower quality of life for residents, and a less attractive environs for potential businesses and homeowners.
It would be nice if the largest newspaper in the state and the conservative politicians could come to grips with the fact that a decent life costs money. Services cost money. Maintenance of infrastructure costs money. And, well-paid public jobs with the promise of a stable retirement are not part of the problem nor a 'bad thing' for a community.
If only our media and the conservative pundits would investigate tax evaders and the inequity of taxation with the vigor they push for more and more tax cuts, we'd all be better off.
For Further Reading:
Change?
Obliged To Avoid Taxation
Paranoia Overdose
Selling Our Soul To The Company Store
Tax Burden Illumination
Torinus' Taxed Reality
We've cut ourselves into diminished services leading to pothole-filled roads, fewer libraries and parks, and fewer public transportation routes. Thus a lower quality of life for residents, and a less attractive environs for potential businesses and homeowners.
It would be nice if the largest newspaper in the state and the conservative politicians could come to grips with the fact that a decent life costs money. Services cost money. Maintenance of infrastructure costs money. And, well-paid public jobs with the promise of a stable retirement are not part of the problem nor a 'bad thing' for a community.
If only our media and the conservative pundits would investigate tax evaders and the inequity of taxation with the vigor they push for more and more tax cuts, we'd all be better off.
For Further Reading:
Change?
Obliged To Avoid Taxation
Paranoia Overdose
Selling Our Soul To The Company Store
Tax Burden Illumination
Torinus' Taxed Reality
The Planet Can Wait
Don't worry about saving the planet. Al Gore is a liar. "Climategate" supports such conclusions.
Or so Pat McIlheran, Journal Sentinel conservative hack, would have us believe.
The Associated Press and Media Matters debunked this weeks ago.
For Further Reading:
Scientific Consensus on Climate Change?
Or so Pat McIlheran, Journal Sentinel conservative hack, would have us believe.
The Associated Press and Media Matters debunked this weeks ago.
For Further Reading:
Scientific Consensus on Climate Change?
Wednesday, December 30, 2009
Change?
Here's a plan for raising all necessary revenue to correct: state and local budget shortcomings, infrastructure projects, health care, housing, and credit markets:
Increase taxes on the wealthy, scale back tax exemptions, close tax loopholes, increase the capital gains tax, and implement a Tobin Tax on financial transactions.
It really is that simple. 95 percent of the population earning under $150,000 annually would be largely unaffected by the tax increases.
By sharing a little more now, The Haves could accelerate the economic recovery's pace, thereby improving their own business prospects. For the owners, this is basically an investment in their own future. Even though a lost decade hurts low-income families the most, such a long period of stagnation can take quite a bite out of a corporation's balance sheet and stock value.
This back-and-forth, dog-and-pony show we're receiving from the Mainstream Media and Congress (basically a PR firm for big business) is exactly that, a show. A rather elaborate production with the drama of a soap opera, corruptly masking dubiousness and misappropriations.
It's really not that hard to get things done. FDR sure did get quite a bit done in 1933.
Increase taxes on the wealthy, scale back tax exemptions, close tax loopholes, increase the capital gains tax, and implement a Tobin Tax on financial transactions.
It really is that simple. 95 percent of the population earning under $150,000 annually would be largely unaffected by the tax increases.
By sharing a little more now, The Haves could accelerate the economic recovery's pace, thereby improving their own business prospects. For the owners, this is basically an investment in their own future. Even though a lost decade hurts low-income families the most, such a long period of stagnation can take quite a bite out of a corporation's balance sheet and stock value.
This back-and-forth, dog-and-pony show we're receiving from the Mainstream Media and Congress (basically a PR firm for big business) is exactly that, a show. A rather elaborate production with the drama of a soap opera, corruptly masking dubiousness and misappropriations.
It's really not that hard to get things done. FDR sure did get quite a bit done in 1933.
Monday, December 28, 2009
Eschweiler & Milwaukee Architecture
Kudos to Chris Liebenthal, of Cognitive Dissidence and Milwaukee County First, for illuminating the sorry shape of the County's Eschweiler buildings.
Milwaukee has a treasure trove of historically significant architecture. For us to willfully sit by as they disintegrate is sad and shameful.
For Further Reading:
Eschweiler Buildings
Historic Milwaukee Architecture 1, 2, 3
Milwaukee Architecture
Here's a few more examples of Eschweiler architecture:
Milwaukee has a treasure trove of historically significant architecture. For us to willfully sit by as they disintegrate is sad and shameful.
For Further Reading:
Eschweiler Buildings
Historic Milwaukee Architecture 1, 2, 3
Milwaukee Architecture
Here's a few more examples of Eschweiler architecture:
Sunday, December 27, 2009
Historic Milwaukee Architecture
The residence above is a Tudor Revival. The name is in reference to the Tudor dynasty, which reigned from 1485 to 1603. In America, this was a popular style between 1890 and 1940. The style is based on English Renaissance architecture from folk houses and Late Medieval mansions; sometimes containing Craftsman trademarks.
Within the Tudor style, there are sub-styles - Jacobean (1603-1625), Elizabethan (1558-1603), etc. This particular dwelling, built in 1912, was designed by Ferry & Clas. It's Tudor elements include: half-timbering, facade with cross gables, exposed rafters, and arched entryway.
Friday, December 25, 2009
The Blind Leading The Naked
Why don't we build anything anymore? Why have imports skyrocketed while our exports have tanked? Why has the percent of value added by manufacturing as a percentage of GDP shrunk from 25 percent in 1947 to 11 percent today?
Upper Mismanagement
Upper Mismanagement
Equity Illusion
From The Equity Culture Loses It's Bloom:
- In the 1970s investors...held conservative portfolios that were heavy on bonds...The advent of individual retirement accounts and other defined contribution plans would change that in the coming decade. In 1985 individuals held $750 billion in IRA and DC plans; by the market peak in 2007, that number had rocketed to $9.2 trillion.
- The Standard and Poor's 500 index soared from 131.05 to 1,565.153, or 1,194 percent.
- As of September 30, long-term Treasury bonds had beaten U.S. stocks over the past 28 years.
- "Equities depend on capital gains, but income-producing assets, such as infrastructure, are pretty reliable through different economic cycles," notes David Richardson.
Sunday, December 13, 2009
Saturday, December 12, 2009
Historic Milwaukee Architecture
The residence above is a Georgian Colonial Revival. The name is in reference to the Georgian Period (George I through IV; 1714-1830). In America, this was a popular style from the 1890s to the 1930s. This style tips it's hat to sixteenth century Italian architecture. Many other fine examples abound in Milwaukee's Upper East Side and North Point.
This particular dwelling was built in 1901; designed by notable Milwaukee architects George Bowman Ferry and Alfred Clas. Common colonial elements, and some particular embellishments, present in this example are: symmetrical facade, keystones above the windows, quoins accentuating the exterior corners, modillioned cornice, red brick and white trim, front door sidelights, roof balustrade encompassing a roof-top deck, and a marble-tread front stair.
Limp Logic
Sunday, December 6, 2009
New Firms Are No Job Engine
John Torinus, of the Journal Sentinel, assures us that new firms are the key to our recovery. Encouraging new firms using the typical incentives (job credits, small business loans, investment credits, grants, using pension fund money for speculative investment, etc.), he believes, will create jobs.
He also uses the education-as-magic-bullet talking-point to paint the image of a miraculous market machine, infused with newly educated college graduates, encouraged by credits and grants, creating new firms, thereby growing employment.
Yet, Torinus even points out that one-third of young companies fail to make it through a second year; what he calls a "messy churn." But lets ignore that fact, it would expose the false premise concocted in the article.
As Doug Henwood notes, "Small firms pay less than large ones, are less likely to offer health, pension, or child care benefits, and are often more dangerous to workers. With few exceptions, they're not all that innovative technologically...37% of the labor force changes its employment status every year...new jobs do not sprout in the greatest numbers at either fresh start-ups or small firms...Smaller employers do generate plenty of jobs, but they also destroy them in great quantities. If you add together creation and destruction, no clear picture emerges."
The recovery hinges on the destruction of neoliberal policies and a reclamation of the public good.
He also uses the education-as-magic-bullet talking-point to paint the image of a miraculous market machine, infused with newly educated college graduates, encouraged by credits and grants, creating new firms, thereby growing employment.
Yet, Torinus even points out that one-third of young companies fail to make it through a second year; what he calls a "messy churn." But lets ignore that fact, it would expose the false premise concocted in the article.
As Doug Henwood notes, "Small firms pay less than large ones, are less likely to offer health, pension, or child care benefits, and are often more dangerous to workers. With few exceptions, they're not all that innovative technologically...37% of the labor force changes its employment status every year...new jobs do not sprout in the greatest numbers at either fresh start-ups or small firms...Smaller employers do generate plenty of jobs, but they also destroy them in great quantities. If you add together creation and destruction, no clear picture emerges."
The recovery hinges on the destruction of neoliberal policies and a reclamation of the public good.
Oblique Journalism
The Journal Sentinel has an inanely meandering editorial - Not a tax hell, but state still needs better revenue mix - pushing for decreased taxes, service maintenance, alongside "innovation and entrepreneurial spirit," hinging on increased educational outcomes. Many good talking-points and topics-of-the-moment, but the editorial is quite sparse on actual numbers, comparisons, evidence, or needed actions.
The editorial incorrectly opines, "...as the state's taxpayer base ages, the ability of these citizens to pay for the increased services they will need will be limited even as the number of workers supporting them will be fewer." This is the same reasoning used by those selling the Social Security crisis. As I've noted previously, tax issues are primarily problems of incidence not burden.
Should we remove our manufacturing machinery and equipment tax exemption? Should we discontinue funding projects like the Moderne and Miller Park? Should we raise taxes on the wealthiest? Should we increase capital gains and corporate taxation? Or should we continue to cut programs and services, to lower our quality of life?
People expect services, coinciding with an increasing standard-of-living (paid for with taxes). To simply state property and income taxes are too high (a nebulous statement unless some type of comparison or operationalization is provided), may sell papers, but it does not explain or contribute anything to the discussion.
And, to throw in the (paraphrasing) Education Will Save Everything slogan is pointless. "A smarter, better-prepared workforce, after all, would be better able to compete and command higher wages." The problem is not a lack of skills, it's a lack of jobs.
To keep pushing the "Wisconsin taxes are a major deterrent to businesses locating here" mantra also conflicts with reality. And, as I've stated before, "If, as a nation, we are so concerned with taxation, then we need federally standardized tax rules, equally written and applied to all states. Not our current hodge-podge of individually state-controlled breaks, bribery, and favoritism." If these are crucial matters to the progress and growth of our local and national economy shouldn't we be cooperating on a more federal level, rather than continuing to operate under beggar-thy-neighbor policies?
The Journal also implies years of arduous taxation, in general, has been holding Wisconsin back. Nowhere is there mention of Wisconsin's lack of a modern transportation infrastructure as a hindrance to business location decisions. Newsflash: Infrastructure matters to business.
But then the editors offer a stunning conclusion, "Political leadership should work to keep taxes in check and to put the property tax on a diet. More important, they should ensure that schools and other essential state services are able to meet their obligations." There you have it; circular logic at is best. No real point, no real insight. The Fourth Estate has no clothes.
For Further Reading:
America's Granny Bashers
Hands Off Social Security
Obama Suggests Defaulting on National Debt
State Comparisons
The editorial incorrectly opines, "...as the state's taxpayer base ages, the ability of these citizens to pay for the increased services they will need will be limited even as the number of workers supporting them will be fewer." This is the same reasoning used by those selling the Social Security crisis. As I've noted previously, tax issues are primarily problems of incidence not burden.
Should we remove our manufacturing machinery and equipment tax exemption? Should we discontinue funding projects like the Moderne and Miller Park? Should we raise taxes on the wealthiest? Should we increase capital gains and corporate taxation? Or should we continue to cut programs and services, to lower our quality of life?
People expect services, coinciding with an increasing standard-of-living (paid for with taxes). To simply state property and income taxes are too high (a nebulous statement unless some type of comparison or operationalization is provided), may sell papers, but it does not explain or contribute anything to the discussion.
And, to throw in the (paraphrasing) Education Will Save Everything slogan is pointless. "A smarter, better-prepared workforce, after all, would be better able to compete and command higher wages." The problem is not a lack of skills, it's a lack of jobs.
To keep pushing the "Wisconsin taxes are a major deterrent to businesses locating here" mantra also conflicts with reality. And, as I've stated before, "If, as a nation, we are so concerned with taxation, then we need federally standardized tax rules, equally written and applied to all states. Not our current hodge-podge of individually state-controlled breaks, bribery, and favoritism." If these are crucial matters to the progress and growth of our local and national economy shouldn't we be cooperating on a more federal level, rather than continuing to operate under beggar-thy-neighbor policies?
The Journal also implies years of arduous taxation, in general, has been holding Wisconsin back. Nowhere is there mention of Wisconsin's lack of a modern transportation infrastructure as a hindrance to business location decisions. Newsflash: Infrastructure matters to business.
But then the editors offer a stunning conclusion, "Political leadership should work to keep taxes in check and to put the property tax on a diet. More important, they should ensure that schools and other essential state services are able to meet their obligations." There you have it; circular logic at is best. No real point, no real insight. The Fourth Estate has no clothes.
For Further Reading:
America's Granny Bashers
Hands Off Social Security
Obama Suggests Defaulting on National Debt
State Comparisons
Saturday, December 5, 2009
The Giveaway
The Liability Con
Some enlightenment concerning recent deficit hysterics:
1994
Baselines, Counterfactuals and the Stimulus
How I Learned to Stop Worrying and Love the Deficits
No Exit
Notes on the Dollar Panic
The Budget Deficit Crisis
The meme that deficit spending, always, crowds out private investment and is, in general, morally wrong, is both short-sighted and misleading. We are a country - private citizens, business, and government - that has used debt to live a better standard of life, grow companies, and finance operations, especially since WWII. During recessionary episodes, the government accumulates debt to restore employment, fix crumbling bridges, improve water and air quality, provide health care, etc. All quite worthy and important causes for investment.
This false debate about rates, deficits, and "big," "bad" government is deceptive drivel. Just more smoke and mirrors of class warfare. The rich in this country have slowly lowered their tax burden, frozen wages for laborers, and methodically steered more of the country's wealth toward their own pockets. As public money (which would have been used for public goods) finds it's way into private pockets, less of the public commons is maintained. We all end up worse off. As is evidenced by the continually decreasing standard of living for most Americans.
America Without a Middle Class
Household Debt Service
Poverty Facts and Stats
U.S. Business: The American Way of Debt
1994
Baselines, Counterfactuals and the Stimulus
How I Learned to Stop Worrying and Love the Deficits
No Exit
Notes on the Dollar Panic
The Budget Deficit Crisis
The meme that deficit spending, always, crowds out private investment and is, in general, morally wrong, is both short-sighted and misleading. We are a country - private citizens, business, and government - that has used debt to live a better standard of life, grow companies, and finance operations, especially since WWII. During recessionary episodes, the government accumulates debt to restore employment, fix crumbling bridges, improve water and air quality, provide health care, etc. All quite worthy and important causes for investment.
This false debate about rates, deficits, and "big," "bad" government is deceptive drivel. Just more smoke and mirrors of class warfare. The rich in this country have slowly lowered their tax burden, frozen wages for laborers, and methodically steered more of the country's wealth toward their own pockets. As public money (which would have been used for public goods) finds it's way into private pockets, less of the public commons is maintained. We all end up worse off. As is evidenced by the continually decreasing standard of living for most Americans.
America Without a Middle Class
Household Debt Service
Poverty Facts and Stats
U.S. Business: The American Way of Debt
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