Category Archives: Economics

Who’s Been Overreaching, Again?

Jen Rubin takes E. J. Dionne to school:

Overreach would be choosing extra-legislative means (flight) to prevent the voters’ elected representatives from working their will. Overreach would be threatening Republican officials in their homes. Overreach would be a flurry of Hitlerian imagery (good for the National Jewish Democratic Council in denouncing the widespread signage, but where is the George Soros-backed Jewish Funds for Justice and the anti-Glenn Beck crowd when you need them?) Overreach would be a massive sick-out, in essence a dishonest strike. (The schools should dock pay for anyone not actually ill who didn’t show up.)

So, yes, Walker is seeking a revamping of the state’s relationship with its public employee unions. It’s about time.

And Professor Bainbridge explains why public-employee unions are so inimical to public finance, and should be universally abolished. Even Franklin Roosevelt was opposed to them, with good reason:

In effect, public sector unionism thus means that representatives of the union will often be on both sides of the collective bargaining table. On the one side, the de jure union leaders. On the other side, the bought and paid for politicians. No wonder public sector union wages and benefits are breaking the back of state budgets. They are bargaining with themselves rather than with an arms’-length opponent.

Basically, they’ve wrecked the California economy, and in Madison, they’ve created Greece with snow, and are on the verge of granting Frances Fox Piven her violent and anti-democratic wish.

[Update a few minutes later]

Who is polarizing America?

I argue in Radical-in-Chief that Obama’s long-term hope is to divide America along class lines (roughly speaking, tax payers versus tax beneficiaries). Obama’s attack on the Supreme Court at his 2010 State of the Union address, his offensive against the Chamber of Commerce, his exhortation to Hispanics to punish their enemies, and several similar moves were all efforts to jump-start a populist movement of the left. Like his socialist organizing mentors, Obama believes that a country polarized along class lines will eventually realign American politics sharply to the left. Yet the entire strategy is based on the need for an activated, populist movement of the left. So far, Obama has failed to create such a movement. His expensive economic agenda has provoked a populist counter-movement of the right instead: Obama’s nightmare.

Now, however, Obama may belatedly be getting his wish. The very success of the Tea Party is calling forth an opposing movement of the left. Obama’s exhortations may have failed to polarize the country along class lines, but his policies have finally provoked the long-sought battle. The once-dormant legions of Obama’s group, Organizing for America, have now been activated. This is the moment they were created for.

In Radical-in-Chief, I describe the “inside/outside” or “good cop/bad cop” strategy favored by Obama and his organizing mentors. The idea is that a seemingly moderate “good cop” politician works on the inside of government, while coordinating his moves with nasty Alinskyite “bad cops” on the outside. Reports that Obama’s own organizers helped put together the Madison protests fit the model. That coordination is necessary to achieve Obama’s real goal: kicking off a national grassroots movement of the left that he can quietly manage, while keeping his distance when necessary.

And Steven Hayward says it may be time to really start brewing some tea, while these thugs are still in the minority.

[Update a few minutes later]

The AP as union mouthpiece:

“Protesters clogged the hallway outside the Senate chamber, beating on drums, holding signs deriding Walker and pleading for lawmakers to kill the bill.”

“Beating on drums”? Beating on drums? These were public-school teachers, right? In any case, they were public employees. Beating on things is what little kids do when they’re not getting their way, or demanding something. Of course, the beating of drums is meant to menace and intimidate too.

America’s liberals must be very proud. Mobbing the legislature and beating on drums! Bear in mind that the Left is the thinking, sophisticated, and humane party in America.

The AP story — and remember that this is supposed to be a news report from a wire service — contains the line, “Elsewhere in the Statehouse, Democrats showed up in the state Assembly chamber wearing orange T-shirts that proclaimed their support for working families.”

“Working families,” huh? What do you call the families with taxpayers who support what Governor Walker and the Republicans are trying to do, and oppose the unions and their thuggish tactics? Non-working families?

It’s who they are. It’s what they do.

[Update late morning]

Here’s more:

Someone wrote me that the “public employees” in Wisconsin reminded her of Chávez and his goons in Venezuela. Actually, they remind me of Cuba. There, the dictatorship sends its loyalists to the homes of those suspected of not being loyalists. They scream, beat on things, denounce, and threaten. The idea is, the “disloyal” Cubans are supposed to quake in their homes, and they do. These tactics are called actos de repudio — “acts of repudiation.” They are a mainstay of the regime.

Sadly, they’re not the only regime of which they are a mainstay. Remember this the next time someone tells you how “moderate” and “centrist” the president is.

[Update a while later]

Is this how a president should act?

Just think–there once was a time (for more than a century, actually), when the president of the United States thought it too imperious to deliver the State of the Union via a speech to a joint session of Congress, since that would smack of telling a co-equal branch of government what to do. Now we have a president not just taking rhetorical sides in a state issue, but actively mobilizing his political organization to affect the outcome(s), even though (to my knowledge) nothing that Gov. Walker or any other belated statehouse cost-cutter is doing has a damned thing to do with federal law.

I have written in the past about how libertarians are pretty lonely in the political scheme of things in terms of constantly being challenged to defend themselves against the “logical conclusion” of their philosophy. But I think it’s time to amend that. We are witnessing the logical conclusion of the Democratic Party’s philosophy, and it is this: Your tax dollars exist to make public sector unions happy.

When this president acts presidential, it’s the exception, not the rule.

[Afternoon update]

The AWOL Democrat state senators have a new hideout. Hey, it’s the Chicago way.

[Update a few minutes later]

A first-hand blogging report from a law professor in Madison. I’m thinking (and hoping) that this generates a huge anti-union backlash, especially for public-employee unions. I think that people have had enough.

Desperation

The administration is asking the judge who declared the health-care law unconstitutional to order it to be implemented.

I’d say good luck with that, but I’d be lying.

[Update a while later]

It’s not just the mandate. Just in case the bill survives the Supreme Court, the waivers are unconstitutional as well. These would seem to be a slam dunk from an equal protection standpoint. It’s government by fiat, and rule of men rather than law. Which is the only kind that works for the White House, because the people sure don’t want it.

The Lunacy Of Federal High-Speed Rail

A take-down by Robert Samuelson.

[Update while later]

Florida Governor Rick Scott has turned down funding for it.

* My decision to reject the project comes down to three main economic realities:

o First – capital cost overruns from the project could put Florida taxpayers on the hook for an additional $3 billion.

o Second – ridership and revenue projections are historically overly-optimistic and would likely result in ongoing subsidies that state taxpayers would have to incur. (from $300 million – $575 million over 10 years) – Note: The state subsidizes Tri-Rail $34.6 million a year while passenger revenues covers only $10.4 million of the $64 million annual operating budget.

o Finally – if the project becomes too costly for taxpayers and is shut down, the state would have to return the $2.4 billion in federal funds to D.C.

That last “if” should be a “when.” Good for him. Too bad we don’t have as much sense in Sacramento.

[Update a couple minutes later]

This seems to have been influenced by my friend (and fellow member of the Competitive Space Task Force) Bob Poole of the Reason Foundation:

the Reason Foundation issued its report nearly two weeks ago. Using estimates for a proposed rail line in California, it projects the Tampa-to-Orlando link could cost $3 billion more than estimated.

Research by the Reason Foundation and the study’s main author, Wendell Cox, regularly offers a skeptical view of rail, so the findings are not particularly surprising. What’s notable is the work was overseen by Robert Poole, a foundation director who served on Scott’s transition team for transportation issues.

“It’s understandable that some are dreaming of flashy high-speed rail trains carrying tourists and residents between the two cities,” Poole said in a news release. “When you look at realistic construction costs and operating expenses you see these trains are likely to turn into a very expensive nightmare for taxpayers.”

Hey, Jerry, I’m sure Bob’s available for a similar analysis for CA. In case you haven’t noticed, you have budget problems, too.

“We Cannot Survive Without You”

I’ve been pointing for a year now that NASA needs private providers a lot more than they need NASA. Jeff Foust has a report from the plenary session of the conference yesterday, in which Charlie Bolden confirmed it. This will, of course, cause exploding of heads in the moronosphere.

[Update a few minutes later]

And as predicted, here is the latest insanity from Mark Whittington:

Charles Bolden was reported to have told Apollo astronaut Gene Cernan that he would provide a bailout for commercial space firms “equal to that given the auto industry” if the private sector faltered in providing space transportation services. Bolden later issued a non denial denial of Cernan’s account.

This raises the question of in what sense is the Obama program “commercial.” Under the Bush era COTS program, the consequences for failure were that a commercial company would be out of the program. Originally a company called Rocket Plane/Kistler was part of COTS. But because RP/Kistler could not meet milestones, it was replaced by another company called Orbital Systems.

But under the Obama plan, the only consequences for failure would be more money pumped into the commercial companies that are developing private space craft. With the demise of Constellation, companies competing for ISS servicing contracts have become too important to fail.

So far this virtual guarantee of money has not had much of an effect on the performance of companies in the commercial space program. Recently, SpaceX successfully orbited, reentered, and landed on the ocean a prototype of its Dragon space craft.

I don’t have time to dissect it right now, so I toss it as chum to the comment sharks. I will note though, that there is no logical connection between the first and second sentences in that last paragraph. Which is not atypical of a Whittington piece.

The Future Of ObamaBusiness

They still don’t get it:

“I have seen the future of Obamabusiness and its regulations (my primary responsibility as a business is to provide jobs, not make a profit) and have responded by not hiring in the traditional manner at all – ever. I will now use temp agencies. Almost no paperwork, no disputes, no benefit costs, no HR department, no lawsuits, no commitments. Welcome to the future of being an employee.”

Emphasis mine. The notion that the business of a business is to create jobs is a Marxist one. As the president remains, despite his shellacking.