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Teachers, Secretaries, And Social Workers: The New Welfare Moms?

Conservatives have had their sights on public-sector workers for a while and for good reason. Public-sector workers represent two favorite targets: organized labor and government. I am a public-sector employee and union member, so I can’t help but take these attacks and struggles personally. I am also a veteran of the welfare “reform” battles of the 1990s, and the debates over public-sector workers are strikingly similar.

Like welfare moms, public-sector workers have been painted as greedy [fill-in-the-blank barnyard animals], feeding from the public trough and targeted as the primary source of what’s wrong with government today.

Like 1990s welfare-reform debates, this one is dominated by more fiction than fact. For example, previous and recent research consistently shows public-sector workers actually earn less than private-sector workers with comparable skills and experience. While many, but not all, public-sector workers who work long enough for the public sector have a defined-benefit pension, the unfunded portions of those pensions are often due to bad state policy, not union negotiations.

In some states, like my own, Massachusetts, current workers are paying most of their pension costs through their own contributions into interest-bearing pension funds. Because state and local governments with defined pensions do not contribute to social security, there are currently cost savings. The upshot is that the cost of pensions may not be as high as some are arguing.

It is true that health-insurance costs for current retirees are expensive and worrisome. But this is because of the rising costs in private health insurance. Making workers pay more for their health-care benefits will erode the compensation base of public-sector workers, but it won’t get at the real problem of escalating health-care costs.

During the welfare debates, one of the arguments used to justify punitive legislative changes was spun around the fact that welfare moms who did get low-wage employment could also get child-care assistance—while other moms could not. Sound familiar? Public-sector workers do have employer-sponsored benefits many private-sector workers no longer get. But benefits haven’t improved in the public sector over the last 20 years; indeed most public-sector workers are paying more for the same benefits.

Over the same period, many private-sector workers have been stripped of their employer-provided benefits even as profits have soared. Instead of asking why corporate America is stripping middle-class workers of decent health-care coverage and retirement plans, the demand is to strip public-sector workers of theirs.

The new Cadillac-driving welfare queens are the handful of errant politicians who game the pension system and a few highly paid administrators getting handsome pensions. Sure they exist, but are hardly representative. The typical public-sector worker is a woman, most often working as a teacher, secretary or social worker. Women comprise 60% of all state and local workers (compared to their 47% representation in the private work force). And those three occupations make up 40% of the state and local work force.

Shaking down public-sector unions may make some feel better about solving government fiscal problems, but the end result will be more lousy jobs for educated and skilled workers. It will also not stem the red ink that is causing states to disinvest in much-needed human and physical infrastructure with budget cuts. But eroding wages and benefits combined with public-sector bashing will send a very loud market signal to the best and brightest currently thinking about becoming teachers, librarians, or social workers to do something else.

Wisconsin Governor Scott Walter is leading the attack on public-sector workers today. In the 1990s it was another Wisconsin governor, Tommy Thompson, who was a leader in demanding and implementing punitive changes to his state’s welfare system. His plan became a model for the rest of the states and federal welfare legislation in 1996. Then there were horror stories and welfare bashing, but not much in the way of discussing the real issue of decent paying jobs that poor and low-income mothers on and off welfare needed to support their families. The main result of welfare reform was the growth in working-poor moms.

There is one important difference. Public-sector workers, unlike welfare moms, have unions and a cadre of supporters behind them.

By: Randy Albelda, CommonDreams.org, May 12, 2011

May 12, 2011 Posted by | Class Warfare, Collective Bargaining, Conservatives, Deficits, Economy, GOP, Gov Scott Walker, Government, Health Care, Jobs, Lawmakers, Middle Class, Politics, Public, Public Employees, Republicans, Social Security, State Legislatures, States, Teachers, Union Busting, Unions, Wisconsin, Women | , , , , , , , , , , , , | Leave a comment

Mr. Gingrich’s Intolerant History: A Presidential Bid Built On Divisiveness And Name-Calling

Newt Gingrich, the former House speaker and latest entrant in the Republican presidential field, has money, experience and name recognition. His introductory videois all serenity and hope, a deceptively calm way for many voters to meet a splenetic politician with a long history of slashing divisiveness and intolerance.

He refers to himself as a historian, but apparently his personal study of history has primarily taught him about the effectiveness of demagogy. Donald Trump, fiddling with birth certificates, is an amateur compared with Mr. Gingrich at sliming the Obama administration — as well as Democrats, Muslims, blacks and gay men and lesbians.

The Democrats who won in 2008, including President Obama, are “left-wing radicals” who lead a “secular socialist machine,” he wrote in his 2010 book, “To Save America.” He accused them of producing “the greatest political corruption ever seen in modern America.” And then the inevitable historical coup de grâce: “The secular-socialist machine represents as great a threat to America as Nazi Germany or the Soviet Union once did.”

The slurs don’t stop there. He compared the Muslims who wanted to open an Islamic center in Lower Manhattan to the German Reich, saying it “would be like putting a Nazi sign next to the Holocaust Museum.” He is promoting the fringe idea that “jihadis” are intent on imposing Islamic law on every American village and farm.

Last year, he called for a federal law to stop the (nonexistent) onslaught of Sharia on American jurisprudence and accused the left of refusing to acknowledge its “mortal threat to the survival of freedom in the United States and in the world as we know it.” This nuanced grasp of world affairs was reinforced when he said that Mr. Obama displayed “Kenyan, anti-colonial behavior.”

In his world, advocates for gay rights are imposing a “gay and secular fascism” using violence and harassment, blacks have little entrepreneurial tradition, and Justice Sonia Sotomayor of the Supreme Court is a “Latina woman racist.” (He kind of took back that last slur.)

Despite all this, not to mention the ethics violation when he was speaker, Mr. Gingrich’s real liability among the conservative and fundamentalist groups that dominate the Republican primaries is his personal history of infidelity that led to two sordid divorces. (Much of which took place while he was denouncing President Bill Clinton for moral transgressions.) That may explain his endless calls to restore Judeo-Christian values.

It is sometimes difficult to know what some Republican candidates stand for, as they pander to the far right without alienating the center. It is not difficult to know what Newt Gingrich stands for, and to find it repellent.

By: The New York Times, Editorial, May 12, 2011

May 12, 2011 Posted by | Bigotry, Birthers, Conservatives, Elections, Exploratory Presidential Committees, GOP, Islam, Islamophobia, Muslims, Neo-Cons, Politics, President Obama, Racism, Republicans, Right Wing, Voters | , , , , , , , , , , , , , , | Leave a comment

The People Revolt: Reverse Robin Hood Visits Banks Near Wisconsin Capitol

This afternoon, the People’s Rights Campaign, a coalition of labor and community organizations, organized a community action on Madison’s Capitol Square. Activists scrounged for their last pennies and taped them to “deposit slips” so that they could be deposited directly into the accounts of the CEOs of M&I Bank, Bank of America and JPMorgan ChaseBank.

“Why should they have to pay any taxes at all when grubby peasants and working stiffs still have a few pennies left in their pockets?” asked the group’s press release.

Kim Grveles of Wisconsin Resists”What we’re trying to do here is call a spade a spade,” National Nurses United organizer Pilar Schiavo said. “Walker’s budget takes from the poor, seniors, students and workers at a time when people most need help. Walker is taking our last pennies and giving them to the rich and to corporations.”

Kim Grveles of Wisconsin Resists added, “We’re demonstrating Walker’s agenda to transfer money from people to corporate sponsors of the governor and other GOP members of the legislature. Every bill is making us poorer and making the big corporate campaign contributors wealthier just like a reverse Robin Hood– stealing from the working class poor and giving to the rich.

“The corporations aren’t paying their fair share in taxes, they’re getting bailout money and they’re making millions in profits every year.”

Organizers referenced a May 1st article in the Wisconsin State Journal that pointed out that “changes to a corporate tax law proposed in Walker’s budget may mean businesses would pay the state about $46 million less in taxes over the next two years– and $40 million less each year after that.”

Reverse Robin Hook Mike Amato speaks in front of M&IGroups of protestors spread out and took their pennies and deposit slips to the branches of M&I Bank, Bank of America and JPMorgan Chase Bank closest to the Capitol.

At M&I, security guards locked the front door as soon as the group of a dozen or so approached. Mike Amato of the Teaching Assistants’ Association, who was dressed as a Reverse Robin Hood, tried giving his deposit slip to a guard, saying, “They want to create a peasant system, so we’re helping them out by being reverse Robin Hoods, stealing pennies from the poor to give to the rich.”

The security guard seemed unimpressed, later blocking off the entrance to the drive-thru teller window as well, saying that it was “private property” and making deposits to the CEO’s account would not be allowed, but he was later seen with a bank manager, discussing the text of one of the deposit slips the group had left behind.

Reverse Robin Hood’s BandAccording to Schiavo, a group of protestors succeeded in getting into the local Bank of America investment branch, where they deposited their pennies into CEO Brian Moynihan‘s account. Protesters were locked out of JPMorgan Chase Bank’s branch but were able to deposit their slips through the slit between the glass doors and leave them in a pile in the entryway.

Schiavo noted that the People’s Rights Campaign seeks, through this action, to call attention to their platform, which calls for “restored rights to living wage jobs, access to healthcare and retirement security rather than giving back to corporations that have already received money from the government and continue to give huge bonuses to their CEOs.”

By: Rebecca Wilce, Center for Media and Democracy, May 11, 2011

May 12, 2011 Posted by | Bank Of America, Banks, Businesses, Collective Bargaining, Conservatives, Consumers, Corporations, Financial Institutions, GOP, Gov Scott Walker, Ideologues, Ideology, Income Gap, Jobs, Middle Class, Politics, Public Employees, Republicans, Taxes, Union Busting, Unions, Wealthy, Wisconsin, Wisconsin Republicans | , , , , , , , , , , , , , , , | Leave a comment

Boehner The Extortionist: “Give Us Trillions In Cuts In Medicare and Medicaid Or We Blow Up The Economy”

Stripped of its politician’s gloss, this is the message that House Speaker John Boehner delivered to Wall Street Monday in discussing the price Republicans demand for raising the debt ceiling.

Boehner portrays himself as a reluctant extortionist: “It’s true that allowing America to default would be irresponsible.” But he told the barons of Wall Street he has no choice. The Tea Party made him do it: “Washington’s arrogance has triggered a political rebellion in our country. And it would be more irresponsible to raise the debt ceiling without simultaneously taking dramatic steps to reduce spending and reform the budget process.”

Notice the Speaker’s phrasing. He curses deficits and debt but he isn’t focused on them. He is focused on “our spending addiction.” “Everything is on the table,” he says, “with the exception of tax hikes.”

And even that is a half-truth, since Boehner and his party have also no appetite for real cuts in the defense budget. Boehner isn’t pushing to get out of Iraq and Afghanistan and roll back the costly U.S. global police role. In the budget that Boehner pushed through the House, Republicans voted to give the Pentagon back most of the relatively nominal defense cuts that Defense Secretary Robert Gates had projected over the next years. And many harshly censored the president for suggesting that another $400 billion in cuts might be chipped out of the more than $8 trillion the Pentagon will spend over the next 12 years.

So if tax hikes aren’t allowed—even though the wealthiest Americans are now paying a lower effective tax rate than their chauffeurs—and defense cuts are off the table, how does Boehner propose to get “trillions” in spending cuts? Medicare and Medicaid get the ax. Or as Boehner puts it in politician speak, “Everything on the table” includes “honest conversations about how best to preserve Medicare.”

The budget math is inescapable. The federal government, as Paul Krugman puts it, is basically an insurance system for our retirement years that also has an army. About half of the government’s spending is in retirement programs—Social Security, Medicare, much of Medicaid and other insurance programs. Defense is half of the rest. All of the rest of government —public health, environmental protection, the IRS, the FBI and Justice Department, education, Pell grants, roads, health research, R&D—consumes the last fourth. When Republicans take taxes and defense off the table, and call for trillions in spending cuts and you have no choice but to go after Medicare, Medicaid and/or Social Security.

Which of course is what they are doing. The House budget cuts nearly $800 billion out of Medicaid over the next five years—and ends Medicare as we know it.

There is a bitter irony to this. The current deficits stem largely from three sources—the Bush tax cuts, the two wars that were fought on the tab, and the Great Recession that cratered tax revenues and lifted spending on everything from unemployment to food stamps to the recovery spending. Boehner argues that “adding nearly a trillion to our national debt—money borrowed mostly from foreign investors—caused a further erosion of economic confidence in America.” But he ignores the trillions added to the debt by the Bush tax cuts, the wars and the Great Recession, focusing only on the Obama recovery spending, which made the smallest contribution of all of these to the deficits. And, he rules out reversing the top-end tax cuts or cutting the military spending to address the deficits that they helped to create. (And if we actually adopt his policies, he’s likely to extend the Great Recession as well).

Boehner argues that adopting his position would show that Washington is “starting to get the message” from the American people. But Boehner isn’t hearing what most Americans are saying. Americans are concerned about deficits, and they are certain that government wastes significant portions of their money. They also oppose the billions squandered on subsidies and tax breaks for Big Oil, Big Pharma, Agribusiness and the like—tax breaks that Republicans defend, arguing that repealing them constitutes a tax increase.

In fact, the vast majority of Americans don’t agree with Boehner’s priorities. The Campaign for America’s Future, which I help direct, has started an American Majority campaign to remind the media of this fact. Three quarters oppose cutting Medicare to help balance the budget. Two thirds oppose raising the retirement age. Three fourths oppose cutting state funding for Medicaid. Over 60 percent favor raising taxes on those making over $250,000 to help reduce the deficit. A growing majority think defense cuts ought to be on the table.

Boehner wants to extort his cuts now—at a time when the economy is struggling, and the country is suffering from mass unemployment. With interest rates near record lows, the construction industry idle and our infrastructure in deadly state of disrepair, the country would be well advised to use this occasion to invest in rebuilding the country, and put workers back to work.

Instead, Boehner offered Wall Streeters a shower of conservative shibboleths, stuck randomly like pieces of lint on a serge suit. “The massive borrowing and spending by the Treasury Department crowded out private investment by American businesses of all sizes,” he argued to what must have been a bemused audience well aware that with interest rates low, and business sitting on trillions in capital waiting for demand to pick up, the only “crowding out” comes from ideology displacing reality in Boehner’s head..

Boehner argues that business people crave stability. Even the mere threat of tax hikes causes them to retreat from investments they might otherwise make. Regulatory changes are similarly disruptive:

“For job creators, the ‘promise’ of a large new initiative coming out of Washington is more like a threat. It freezes them. Instead of investing in new employees or new equipment, they make the logical decision to stand pat.” Sadly, Boehner didn’t explain why the threat to blow up the economy if he can’t get trillions in unidentified spending cuts doesn’t constitute the “promise” of a large new initiative coming out of Washington.”

What happens now? Boehner’s position is untenable. He is holding a hostage—the economy—that he dare not shoot. He is demanding trillions in cuts from programs that he dare not name. He is looking for a back room negotiation in which he can get the president to give him cover in enacting cuts that are unpopular to the American people and likely to be ruinous to the economy. If the president falls for it, Republicans make progress in dismantling the Medicare program that they have always opposed, and the president takes the rap for the bad economy.

What’s to be done? Jonathan Chait gets it right. The president—and the country—would benefit from an open discussion, not a backroom negotiation. The president needs to call Boehner out. What are the trillions in cuts that he wants as the price for letting the economy go free? If he lays them out, as in passage of the House budget plan that ends Medicare as we know it, the President can show Americans why they are unacceptable, and use the bully pulpit to take the case to the country. If Boehner isn’t prepared to lay out his cuts, call his bluff. Surely he can’t long threaten to cripple the economy if he doesn’t get cuts that he isn’t prepared to define.

One thing Boehner says rings true. Americans are sick of the arrogance in Washington. But it is hard to imagine a more arrogant politician than one threatening to blow up the economy if he doesn’t get his way.

By: Robert Borosage, CommonDreams.org, May 10, 2011

May 11, 2011 Posted by | Budget, Businesses, Congress, Conservatives, Corporations, Debt Ceiling, Deficits, Economic Recovery, Economy, GOP, Government Shut Down, Jobs, Lawmakers, Medicaid, Medicare, Pentagon, Politics, Republicans, Right Wing, Social Security, States, Taxes, Tea Party, Wall Street | , , , , , , , , , , , | Leave a comment

Debt Ceiling Warning: Inaction Would Double Interest Rates, Crash Market

Public efforts by both House Speaker John Boehner and President Obama to convince skeptical new Republican House members to add $2 trillion to the nation’s burdensome $14 trillion debt ceiling are being reinforced by dire warnings from business leaders that failing to OK the increase will lead to inflation, an immediate doubling of interest rates and a killer Wall Street crash.

“If they don’t increase the debt, there will be a huge impact on the economy,” a Wall Street executive told Whispers on background. “Interest rates would spike. S&P and Moody’s would downgrade U.S. debt, raising the price of borrowing, there would be a market sell-off, it would be a disaster.”

While Boehner, who yesterday called for a deal that would OK the debt ceiling increase in return for trillions of dollars in spending cuts, Wall Street lobbyists and banking and business leaders are meeting with several of the new Tea Party-backed House members who pledged to stop raising the ceiling to explain the impact of standing pat.

“A lot of freshmen are new to the issue,” said one of those meeting with the new members, some of whom signed pledges not to raise the debt ceiling no matter what.

Among the specifics the sources say they are telling the new members:

— Inflation could jump, though they aren’t giving any percentage growth.

— Interest rates could double if U.S. debt is downgraded. House loans, for example, that are now below 5 percent, could surge to 9-10 percent, killing any chance of fixing the housing slump or cutting the unemployment rate, now at 9 percent.

— The stock market could suffer a 10 percent drop, far more significant than the 778 point thrashing Wall Street took when the House rejected the government’s $700 billion bank bailout plan in September 2008.

“That market sell-off will look small compared to what we’ll see,” said a Wall Street executive.

So far, the campaign to turn the naysayers around is starting to work, say those involved. Helping is the expectations that the debt ceiling won’t actually be breached until August.

While there have been warnings that the vote must come sooner due to expectations that the cap will be breached this month, officials explained that Treasury can make several moves to postpone that until about August 2.

By: Paul Bedard, U. S. News and World Report, May 10, 2011

May 10, 2011 Posted by | Banks, Businesses, Congress, Conservatives, Debt Ceiling, Deficits, Economic Recovery, Economy, Financial Institutions, GOP, Government, Government Shut Down, Jobs, Lawmakers, Lobbyists, Politics, President Obama, Republicans, Right Wing, Tea Party, Unemployment, Wall Street | , , , , , , , , , | Leave a comment