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How The GOP’s War On Workers’ Rights Undermines The Economy

The battle has resumed in Wisconsin. The state supreme court has allowed Governor Scott Walker to strip bargaining rights from state workers.

Meanwhile, governors and legislators in New Hampshire and Missouri are attacking private unions, seeking to make the states so-called “open shop” where workers can get all the benefits of being union members without paying union dues. Needless to say this ploy undermines the capacity of unions to do much of anything. Other Republican governors and legislatures are following suit.

Republicans in Congress are taking aim at the National Labor Relations Board, which issued a relatively minor proposed rule change allowing workers to vote on whether to unionize soon after a union has been proposed, rather than allowing employers to delay the vote for years. Many employers have used the delaying tactics to retaliate against workers who try to organize, and intimidate others into rejecting a union.

This war on workers’ rights is an assault on the middle class, and it is undermining the American economy.

The American economy can’t get out of neutral until American workers have more money in their pockets to buy what they produce. And unions are the best way to give them the bargaining power to get better pay.

For three decades after World War II – I call it the “Great Prosperity” – wages rose in tandem with productivity. Americans shared the gains of growth, and had enough money to buy what they produced.

That’s largely due to the role of labor unions. In 1955, over a third of American workers in the private sector were unionized. Today, fewer than 7 percent are.

With the decline of unions came the stagnation of American wages. More and more of the total income and wealth of America has gone to the very top. Middle-class purchasing power depended on mothers going into paid work, everyone working longer hours, and, finally, the middle class going deep into debt, using their homes as collateral.

But now all these coping mechanisms are exhausted — and we’re living with the consequence.

Some say the Great Prosperity was an anomaly. America’s major competitors lay in ruins. We had the world to ourselves. According to this view, there’s no going back.

But this view is wrong. If you want to see the same basic bargain we had then, take a look at Germany now.

Germany is growing much faster than the United States. Its unemployment rate is now only 6.1 percent (we’re now at 9.1 percent).

What’s Germany’s secret? In sharp contrast to the decades of stagnant wages in America, real average hourly pay has risen almost 30 percent there since 1985. Germany has been investing substantially in education and infrastructure.

How did German workers do it? A big part of the story is German labor unions are still powerful enough to insist that German workers get their fair share of the economy’s gains.

That’s why pay at the top in Germany hasn’t risen any faster than pay in the middle. As David Leonhardt reported in the New York Times recently, the top 1 percent of German households earns about 11 percent of all income – a percent that hasn’t changed in four decades.

Contrast this with the United States, where the top 1 percent went from getting 9 percent of total income in the late 1970s to more than 20 percent today.

The only way back toward sustained growth and prosperity in the United States is to remake the basic bargain linking pay to productivity. This would give the American middle class the purchasing power they need to keep the economy going.

Part of the answer is, as in Germany, stronger labor unions — unions strong enough to demand a fair share of the gains from productivity growth.

The current Republican assault on workers’ rights continues a thirty-year war on American workers’ wages. That long-term war has finally taken its toll on the American economy.

It’s time to fight back.

 

By: Robert Reich, RobertReich Blog, June 15, 2011

June 16, 2011 Posted by | Class Warfare, Collective Bargaining, Congress, Conservatives, Democracy, Economy, Equal Rights, GOP, Gov Scott Walker, Governors, Ideologues, Ideology, Jobs, Labor, Lawmakers, Middle Class, Politics, Public Employees, Right Wing, State Legislatures, States, Union Busting, Unions, Wealthy, Wisconsin, Wisconsin Republicans | , , , , , , | Leave a comment

Thousands Protest at Capitol Against Walker Budget, Supreme Court Ruling

Crowds of protesters who flocked to the Wisconsin state Capitol June 14 anticipating Assembly action on the divisive collective bargaining bill, which essentially eliminates collective bargaining for public workers, were shocked to learn the Supreme Court had reinstated the law in a hotly contested 4-3 decision.

Speakers at a planned 5:00 p.m. rally were quick to lift the faltering spirits of the Wisconsin Democracy Movement. Mahlon Mitchell, president of the Professional Fire Fighters of Wisconsin, told the crowd of thousands, “We’re going to be here every day. We didn’t pick this fight, but if it’s a fight they want, it’s a fight they’re going to get.”

Mary Bell, a middle school English teacher from Wisconsin Rapids serving as president of the Wisconsin Education Association Council, urged protestors to hold Republican legislators accountable for their actions by voting in various recall elections across the state.

“This extreme agenda has to be seen for what it is and what it does to our Wisconsin values. Change begins when we stand up and speak out for what we believe in,” Bell said.

Republicans Signal Approaching Court Ruling, File Fake Candidates

The 4-3 ruling reflected the sharp conservative-liberal divide that many believed would determine the outcome of the Court’s decision. In her dissent, Chief Justice Shirley Abrahamson attacked the implicit “partisan slant” in Justice Prosser’s concurrence and the shaky rhetorical foundation of the majority opinion.

In hastily reaching judgment, Justice Patience D. Roggensack, Justice Annette K. Ziegler, and Justice Michael J. Gableman author an order, joined by Justice David T. Prosser, lacking a reasoned, transparent analysis and incorporating numerous errors of law and fact,” wrote Abrahamson. “This kind of order seems to open the court unnecessarily to the charge that the majority has reached a pre-determined conclusion not based on the facts and the law, which undermines the majority’s ultimate decision.”

The timing of the decision surprised those who had been keeping an eye on collective bargaining proceedings. Assembly Speaker Jeff Fitzgerald announced just yesterday that comittee hearings would be held Tuesday on the collective bargaining proposal, and that his Republican caucus was prepared to vote on it irregardless of a Supreme Court decision. The hearings were delayed several times throughout the day, raising a few eyebrows at the Capitol despite Fitzgerald’s categorical denial of any wrongdoing or insider information.

Some protesters did in fact speculate that not all is as it seems.

“The way they passed the budget bill initially was wrong, and the fact they did this behind closed doors is wrong,” said Sarah Fuelleman, a writer at the University of Wisconsin-Madison Department of Ophthalmology, adding, “I’m not a conspiracy theorist, but I’m starting to become one.”

Lauren Schmidt, a 22-year-old home health care worker from Madison, didn’t mince words.

“I think its horseshit,” she said, before joining a contingent of protesters screaming and blowing vuvuzelas outside the window of Rep. Stephen Nass’s office, where the Republican lawmaker quietly ignored, and at times playfully provoked, impassioned Walkervillians.

Tuesday’s other big piece of news — that Republicans officially filed “fake Democrat” candidates in six Democratic primaries for the upcoming recall elections — didn’t come as much of a surprise. Republicans have openly admitted their intention of delaying the elections by fielding puppet candidates, but have been less forthcoming about the tactic’s collateral damage. According to a Milwaukee Journal Sentinel investigation, the GOP plan would cost taxpayers upward of $428,000.

Budget Cuts Start to Hurt

Teachers, steel workers, firefighters, and other union workers began their Capitol Square march at 11:00 a.m., hoisting signs that read “Recall Walker” and “RIP Democracy.”  Many expressed concern that various budget provisions would leave their families reeling financially.

Stacy Farasha Rhoads, adance instructor from Milwaukee who wore an all pink outfit to symbolize her opposition to proposed Planned Parenthood Cuts, worried that her two children, one of whom is autistic, would suffer from reduced funding for state-provided health services.

“I’m a single mother. I’ve got two children who are on Badgercare and I have a daughter with special needs. So all of the services that my family needs on a regular basis are under attack,” said Rhoads.

Rhoads marched in solidarity with other parents and families anticipating economic hardship, such as Chris Breihan, a part time teacher at Milwaukee Area Technical College. Proposed cuts to Family Care threaten to prevent her 21-year-old special needs son from attending an adult day services program recently recommended to him.

The mood was relaxed for most of the day, as Assembly Democrats and Republicans spent the majority of the afternoon behind closed doors at party caucus meetings. At a midday press conference, Representative Peter Barca and his Democratic caucus announced their intention to offer “a couple dozen” amendments to Governor Walker’s proposed budget, as part of their effort to push back against budget cuts targeting working class families.

At the end of the rally, firefighters led protesters in a “hands around the Capitol,” ceremony. The Beatles’ “Revolution,” written in response to the anti-war protests of the late 1960s, blared from event loudspeakers as pro-union activists took their places along the square. Hand in hand, the group sang a Sconnified version of “We Shall Overcome,” signaling their intent to keep fighting back against Governor Walker’s anti-middle class agenda.

Debora Marks, a 1st grade teacher at Lindbergh elementary, vowed to keep returning to Walkerville for “as long as it takes.” The frequent trips to the Capitol haven’t, however, distracted her from what she considers her top priority.

“My job is about something far more important than Scott Walker: its about educating future generations, and that’s something teachers can not stop doing, whether the Governor wants us to or not,” said Marks.

 

By: Eric Carlson, Center for Media and Democracy, June 15, 2011

June 15, 2011 Posted by | Class Warfare, Collective Bargaining, Conservatives, Democracy, Elections, GOP, Gov Scott Walker, Government, Governors, Ideologues, Ideology, Lawmakers, Middle Class, Planned Parenthood, Politics, Public Employees, Republicans, Right Wing, State Legislatures, States, Union Busting, Unions, Wisconsin, Wisconsin Republicans | , , , , , , , , , , , , | Leave a comment

Flashback 2007: Tim Pawlenty Proposed Establishing A Health Insurance Exchange

Politico’s Kendra Marr and Kate Nocera reviewthe health care records of the GOP presidential candidates and find that Mitt Romney isn’t the only contender who previously supported parts of the Affordable Care Act. Tim Pawlenty, Jon Huntsman, and Newt Gingrich all flirted with various provisions that ultimately ended up in the health law.

ThinkProgress Health reported on Pawlenty’s past support for “universal coverage” here, and his positive assessment of Massachusetts’ individual mandate, but Cal Ludeman, his commissioner of the Minnesota Department of Human Services, recalls that Pawlenty also advocated for establishing an exchange:

Minnesota’s exchange proposal would have required all employers with more than 10 employees to create a “section 125 plan” so workers could buy cheaper insurance with pre-tax dollars. During a 2007 news conference, Pawlenty said launching such a system would only cost employers about $300.

“Remember how new that idea was, even back then,” said Ludeman. “Everybody was talking about how this was a new Orbitz or Travelocity, where you just go shop. It was never talked about in our conversations as a hard mandated only channel where you could go. But that’s where Massachusetts ended up.”

Pawlenty advanced the non-profit Minnesota Insurance Exchange in 2007, arguing that it could “connect employers and workers with more affordable health coverage options.” “If just two of your employees go out and buy insurance through the exchange, the benefits to the employer on a pre-tax basis — because of their payments to Social Security and otherwise into the 125 plan — more than cover the cost of setting up the plan,” Pawlenty explained.

The exchange originated as a Republican idea and was developed in part by the Heritage Foundation’s Stuart Butler. The measure was eventually adopted by Mitt Romney and later became part of the Democrats’ health reform plan. Under the Affordable Care Act, states that don’t establish their own exchanges by 2014, cede control of the new health market places to the federal government. In 2010, while still governor of Minnesota, Pawlenty rejected the ACA’s “insurance exchanges,” dubbing them a federal takeover.

 

By: Igor Volsky, Think Progress, June 13, 2011

June 14, 2011 Posted by | Affordable Care Act, Conservatives, Democrats, GOP, Government, Governors, Health Reform, Ideologues, Ideology, Individual Mandate, Politics, Republicans, Right Wing, States, Under Insured, Uninsured | , , , , , , , , | Leave a comment

Why Polls Are Sinking For New GOP Governors Like Scott Walker

If you’ve  been wondering lately who’s been writing the Republican playbook, I think I’ve  found him. It’s none other than Lenny Dykstra.

Back in his baseball  playing days, Dykstra was a tough as nails leadoff hitter famous for filling  his cheeks with huge wads of tobacco and crashing into outfield walls.  After his playing days were over, he wowed the world with his stock-picking  acumen. Made millions. Drove fancy cars. Owned an $18 million  mansion. He even had a sink that cost $50,000. (It’s true.)

And then, it all came  tumbling down. He went bankrupt. His house was  seized. He was indicted.  And what did he do? He broke back into his old  house … and stole his  prized sink.

Back in November, a new  breed of Republican governor was enjoying its own “wow” moment. Rick  Snyder was the “one tough nerd” to get Michigan’s financial house in  order. Scott Walker was about to take a blow torch to Wisconsin unions.  Florida’s Rick Scott won perhaps the most coveted prize on the presidential  election map. They were supposed to be the leading edge of the Republican  revolution, finally doing what conservatives have long held Americans want  their leaders to do: fundamentally recalibrate the way government operates in  the public square, and disentangling it from the everyday lives of ordinary  people.

But in Sunday’s Washington  Post, Norman Ornstein of the right-leaning American Enterprise Institute took a  moment to detail the woes these boy wonders have since encountered. Rick  Snyder’s approval rating is at 33 percent. Scott Walker’s is 43  percent. Rick Scott: 29 percent.  [Read the U.S. News Debate: Should Congress Raise the Debt Ceiling?]

Seven months ago they were  the toast of the town. Now, milquetoast. What happened?

Well, as Ornstein  describes it, the governors launched initiatives aimed at “cutting benefits for  the poor and middle class while adding tax breaks for the rich” while also  trying to get rid of collective bargaining. As you might imagine,  that wasn’t very popular with a lot of people (for instance: the poor and  middle class). And, shockingly, it hasn’t done much to balance their state budgets either. So now, according to Ornstein, “the only areas left for  meaningful budget reductions are education, Medicaid, and prisons.”

Let’s see: Your approval  numbers are in the tank, and all you’ve got left are gutting schools, letting  out convicts, and taking healthcare away from disadvantaged kids.  I’m guessing, as a re-election strategy, that leaves something to be desired.

In other words: fellas, it  ain’t working. And what’s so surprising about all of this is that for  some, it’s so surprising. Is it really so hard to figure out that one of  the reasons government is its current size and shape is that people have needs  that they want their government to try and meet? It doesn’t always work,  of course. But frustration over government spending on programs that  aren’t working isn’t the same thing as saying people no longer want good public  schools. Understanding that distinction is the difference between doing  the hard, more complicated work of reforming something that isn’t working as  well as we would like, and becoming fixated on an ideological goal that doesn’t  end up fixing anything at all.

Which brings me back to  Mr. Dykstra and his beloved sink. Now, in fairness, those of us who have  been consigned to using standard-issue sinks can only dream about the  hydrological wonders of the $50k variety. Perhaps it dispensed nothing  but delicious milkshakes. More likely: Even as his world was crashing down,  Dykstra couldn’t take his eyes off the one thing he coveted the most. Now  it looks like he’s going to prison.

Republicans may be in for  a similar electoral fate. Instead of helping the people they were elected  to serve, they’ve gone about ruthlessly pursuing an elusive conservative holy  grail. Dismantling government—it’s the GOPs $50,000 sink. And they can’t  take their eyes off of it even as their house burns down around them.

By: Anson Kaye, U. S. News and World Report, June 13, 2011

June 14, 2011 Posted by | Bankruptcy, Collective Bargaining, Conservatives, Democracy, Elections, GOP, Government, Governors, Health Care, Ideologues, Ideology, Labor, Lawmakers, Medicaid, Middle Class, Politics, Public Employees, Republicans, Right Wing, State Legislatures, States, Voters, Wealthy | , , , , , , , , , , , , | Leave a comment

Kicking The Unemployed When They Are Down

Recent highly publicized national jobs reports showing private-sector gains being offset by public-sector losses have drawn attention to the macroeconomic costs of the austerity program already underway among state and local governments, and gaining steam in Washington.  But the effect on the most vulnerable Americans–particularly those out of work–is rarely examined in any systematic way.

At The American Prospect, Kat Aaron has put together a useful if depressing summary of actual or impending cutbacks (most initiated by the states, some by Congress) in key services for the unemployed and others suffering from economic trauma.  These include unemployment insurance, job retraining services, and family income supports.  In some cases, federal funds added by the 2009 stimulus package are running out.  In others, the safety net is being deliberately shredded.

A recent report from the Center for Budget and Policy Priorities notes that the most important family income support program, TANF (the “reformed” welfare block grant first established in 1996) is becoming an object of deep cuts in many states, precisely at the time it is most needed:

States are implementing some of the harshest cuts in recent history for many of the nation’s most vulnerable families with children who are receiving assistance through the federal Temporary Assistance for Needy Families (TANF) block grant. The cuts will affect 700,000 low-income families that include 1.3 million children; these families represent over one-third of all low-income families receiving TANF nationwide.A number of states are cutting cash assistance deeply or ending it entirely for many families that already live far below the poverty line, including many families with physical or mental health issues or other challenges. Numerous states also are cutting child care and other work-related assistance that will make it harder for many poor parents who are fortunate enough to have jobs to retain them.

This is perverse precisely because such programs were once widely understood as “counter-cyclical”–designed to temporarily expand in tough economic times.  Not any more, says CPBB:

To be effective, a safety net must be able to expand when the need for assistance rises and to contract when need declines. The TANF block grant is failing this test, for several reasons: Congress has level-funded TANF since its creation, with no adjustment for inflation or other factors over the past 15 years; federal funding no longer increases when the economy weakens and poverty climbs; and states — facing serious budget shortfalls — have shifted TANF funds to other purposes and have cut the TANF matching funds they provide.

This retrenchment, mind you, is what’s already happening, and does not reflect the future blood-letting implied by congressional Republican demands for major new cuts in federal-state safety net programs–most famously Medicaid, which virtually all GOPers want to convert into a block grant in which services are no longer assured.

If, as appears increasingly likely, the sluggish economy stays sluggish for longer than originally expected, and both the federal government and states continue to pursue Hoover-like policies of attacking budget deficits with spending cuts as their top priority, it’s going to get even uglier down at the level of real-life people trying to survive.  If you are unlucky enough to live in one of those states where governors and legislators are proudly hell-bent on making inadequate safety-net services even more inadequate or abolishing them altogether, it’s a grim road ahead.

By: Ed Kilgore, Democratic Strategist, June 10, 2011

June 11, 2011 Posted by | Class Warfare, Congress, Conservatives, Deficits, Economy, GOP, Government, Governors, Ideology, Jobs, Lawmakers, Middle Class, Politics, Republicans, Right Wing, State Legislatures, States | , , , , , , , , , , , , | Leave a comment