Archive for category Unions

Schwarzenegger on the Public Pension Time Bomb

Arnold’s op-ed in today’s WSJ is worth the time. Basically he contrasts the unionized public employees with the poor unemployed working stiffs who are expected to support them through taxes. A couple of charts are telling:

[schwarzenegger]

He highlights the games played: phony portfolio return assumptions, “spiking” promotions, and retirement at 55. Points out the fact that private employees make less and have less retirement security–their 401k s have declined 20% in value since 2007 while state employee pensions have grown during that period. The public employee effectively has $1 Million in retirement savings!

He calls for a stop to taxes and borrowing to fund pensions. He wants a reversal of the massive retroactive pension increases passed eleven years ago. He wants greater employee contributions to the pensions.

Unfortunately, he fails to call for a constitutional amendment prohibiting public employee unions. This is the only effective way to break the unholy alliance between the democratic legislators and the public employee unions that get them elected. Until that is ended the dirty money game between the two groups will continue.

I commend a full reading of Arnold’s call for reform. Note that it comes from a RINO, and that is a positive step indeed.

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Finally A Stimulus That Has Its Intended Effect

What is this latest $26 Billion stimulus, is it number 5 or 6? I’ve lost count. But this one you can bet will work effectively to accomplish its intended purpose…..to buy votes for Comrade Obama and his leftist cronies. It goes directly to the public employee unions, specifically the teachers. That increases union dues which in turn increases political donations. This stimulus rewards spendthrift states–takes from fiscally responsible states like Indiana and gives to bankrupt states like New York and California. Seems we find the most registered Democrats in those fiscally irresponsible states!

Today’s WSJ pens a great editorial on the subject, “Stimulus Pushers.” As the title suggests, Hussein Obama is the dope pusher further addicting these leftists spendthrifts with a high powered dose of bailout. The addicts don’t care about the hidden costs or the consequences; they just want the fix.

A few principled governors like Haley Barbour of Mississippi are pushing back. The federal government is hijacking state budgets. Rick Perry of Texas is in disfavor with the DC crowd so Texas gets penalized in the legislation. What’s astounding in this is the sheer hubris, the sheer abuse of power with the simple justification that the leftists have the power.

Two points are clear: One, this stimulus only postpones the day of reckoning for these bankrupt states. And, two, these parasites if left unchecked will eventually kill the host—the private sector that pays taxes will no longer be able to afford the excessive pay and benefits sucked up by the public sector. Atlas will indeed shrug!

For Nevadans, Reid must go, and the Pelosi’s democratic lackeys must be defeated. By piling up deficits and debt they are stealing from our children and grandchildren, the height of immorality!

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Damn Musicians’ Union

For those of you who missed this year’s Pops on the River, you missed one of the really great guest conductor performances in the history of the event. Our own Laura Herring bid $2500 to conduct the Sousa March. She did so with such zest that the standing ovation exceeded any other applause that evening.

Here’s an abbreviated look to which the YouTube detail states: “Laura Herring bid on and won the chance to conduct. She did so with such enthusiasm. (We had to cut this video short. The musicians’ union prevents us from publicly showing videos of the RPO longer than 2 minutes. The applause Laura Herring received was amazing!)”

So here’s a quick look at Miss Personality, er Miss Enthusiam!

Union rules may have a place……………but to cut this short?

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Unions and Human Nature

When read that Andy Stern head of the SEIU one of the largest public employee unions is retiring from his $306,388 -a-year job and is likely to be replaced by one of many high paid union bosses, I question the need for unions, particularly the public employee variety.

The days of sweat shops, 12-hour days and child labor have long since passed. Admittedly, industrial unions served an important social purpose. Working conditions and job safety have dramatically improved as a result of their efforts. Those improvements have beed legally codified long ago.

On the public employee side of the workforce no such social ills or physical dangers prevailed. The supposed “evil” for public employment was the “spoils” system: to the victor goes the spoils. When the city hall changed hands politically, so did its workforce. This enabled machine politics to prevail with ward bosses calling the shots from New York to Kansas City. The “reform” here was the civil service system in which competence and merit assured job security.

So what do unions do today? In my opinion, they promote mediocrity. They create work to create new members. They create fat cat union bosses. And, they foster “rent-seeking” behavior by attaching themselves to politicians who are more than willing to trade laws and regulations favorable to unions for membership money and membership votes.

  • Mediocrity: All of us are equal thus it would be wrong for some of us to try to excel, do a better job, be more efficient, work smarter and faster. Lets all be the same because in numbers there is strength. So let’s not resent the slackers, let’s keep our mouth shut about our fellow worker who knows how to “work the system.”
  • Make work: The more work there is the more workers that are needed. That means more potential union members, more dues and more pay for the bosses and more money for compliant politicians.
  • Union Bosses: Guys like Andy Stern are the ultimate salesmen. They separate union members from their money and big money it can be. What benefit do the union members get for those dues? Not much.
  • Political Symbiosis: The unholy alliance between fat cat union bosses and fat cat politicians is well chronicled. It’s self perpetuating. Who pays the price? The union members and the public.

My take, unions harm their members and society in general. Mediocrity is not in the fiber of human nature. In fact it is opposite the natural human spirit to compete and excel. We strive to better ourselves. Nor is the unfairness implicit in mediocrity part of human nature. We strive to be just. We resent slackers we resent the inability to demonstrate our excellence. Likewise we tend to resent the waste implicit in union make work programs and featherbedding; in a general sense human nature is economic. Human nature is indeed social but it is also naturally competitive and just.

Would excellent teachers favor merit pay? Do they favor keeping notorious deadwood on the job simply because the deadwood belongs to the union. Would union members prefer to make or not make political contributions on their own rather than have the union bosses decide where the money goes? Do union members like being told how to vote?

As a young man working my way through school I was a card carrying member at different times of three building trade unions. The work was good as was the pay, but the pace was regulated be other members. I can remember being told to slow down! Older now, I have a broader perspective about unions effect on our society, our government and our economy. To see fat cat Andy Stern plunk down $60 million to put Barack Hussein Obama into the White House really turns my stomach.

Reform is needed particularly in the public employee sector and part of that reform is to expose the fat cat union bosses and how their interest differ for the interests of the membership.

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Wall Street + Democrats = Crony Capitalism at Taxpayer Expense

In 2008 to elect, inter alia, Barack Hussein Obama and other Democrats,  Goldman Sachs contributed $4,463,788; that’s 75% of its total contributions to the Democrats, the party of Wall Street. Also the party of public employee unions and unions in general. Also the party of trial lawyers. These three groups together with sundry “rent seeking” corporations like GE have cost the U.S. economy, particularly the taxpayers, billions of dollars. A little money buys a lot from Democratic whores like financial perks to Goldman from selling structured phony investments, more government employment union dues for union bosses, and contingency fees for trial lawyers from phony lawsuits. The economic cost hurts us in inflated deficits and debt, higher capital costs and exploding taxes and higher medical costs from inflated malpractice insurance rates.

The Wall Street payoff continues with Sen. Dodd’s financial ”reform” package. It is a bailout at taxpayer expense waiting to happen. With Obama and Democratic lips moving in support of the Dodd security blanket for Wall Street you know the denial of future bailouts is bold face lie. What Dodd has done is to institutionalize future bailouts garnering more power to the federal (DEMOCRATIC) regulators. Just another step in big government. Just another money getting lever for the Democrats. Just another vote buying lever for the leftists.

The problem is twofold and all bad: One: More control of the economy, main street as well as big business, because the general economy works with the financial lubricants provided by the financial industry. More control means bigger government. More control means more opportunity for rent seeking behavior and less competition. More control means more incumbent power.

(Definition: rent seeking behavior is the business behavior to obtain unfair competitive advantage from government regulation, subsidy, or taxation against competition without such advantage. Examples: subsidy of environmental devices, ethanol, and government bond agency.)

Two: Just as bad from an overall economic perspective is the moral hazard enshrined in the Dodd bill. Moral hazard is the real or imagined sense that there is a safety net protecting business from adverse risk. If I feel the government will always be there to bail me out, I will take more and more undue risk to gain greater profit because I have nothing or little to lose in the process. This is a guaranteed bubble generator and when the s__t hits the fan, the necessary cleanup will fall on the taxpayer. Fannie and Freddie are perfect examples of this phenomena.

As a recent WSJ editorial notes the Dodd bill is improving draft by draft at a glacial pace so we still have hope. But the mindset of the Obama control freaks is opposite the welfare of the American people.The solution is to separate high risk businesses like proprietary trading  from government guarantee businesses like bank deposits or alternatively, eliminate all government business guarantees. We must have the freedom to fail as well as succeed without government interference in either case. That is what makes us competitive and what has made us great.

Welfare be it individual or corporate only makes us dependent in a world that will not tolerate dependence. It puts us near the end of the road to serfdom.

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Obama Exempt From Obamacare!

Yes, despite several Republican attempts to have all Americans included in Obamacare they failed in the effort according to a Washington Times editorial today, No Obamacare for Obama! Obama has preached that the new healthcare will affect “every American family.” But Biden has corrected this falsehood and admitted that Obamacare will only apply to “ordinary Americans.” So, if I understand this correctly, it won’t apply to “extraordinary” Americans.

The Republican attempts at inclusiveness were frustrated by unions representing federal workers, the same unions that supported Obamacare. Then they tried to block an exemption for Congressional leadership and personal staff but this too was frustrated and senior officials of the executive branch including the president, vice president and cabinet members were also exempted.

As a result we have congressional staff that drafted the 2000+ page monstrosity exempt from its effects. We have unions who supported it exempt. We have Democratic leaders who voted for it out. And we have the president and senior administration officials exempt.

Bottom line, Obamacare is not good enough for Obama and his family. He’s just too “extraordinary!” Oh to be one of the ruling elite!

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Obama Against Free Speech Unless It Favors Him

For a president to criticize a supreme court decision in fromt of Congress while members of the court are required by decorum to sit motionless is at the very least inappropriate and more likely bullying and demagoguery. White House press secretary Robert Gibbs picked up the criticism last week, “what is troubling is that this decision opened the floodgates for corporations and special interests.” At least Gibbs didn’t repeat Obama’s misinterpretation of the Citizens United v Federal Election Commission.

As Stephen Law pointed out last week in the WSJ (Organized Labor and Citizens United) the president is being more than a bit disingenuous in his silence as to big labor’s benefit from that very decision. “Unions were the big winners in the “corporate” free speech case.” Law points out that it is the unions who are the big political spenders. They have virtually no restraints on how they use the members money. Corporations have shareholders who expect them to earn profits for dividends and appreciation. Unions have no such constraints. They aren’t held to any financial performance standards. SEIU boss Andy Stern admitted that he had taken out tens of millions in loans last year for political ads, “we maxed the credit card and now we’re paying it off.” Law notes, “what corporation could get away with that.”

The other unstated beneficiaries of the decision are the “corporations” that own newspapers. These entities are exempt under the statute that Citizens United declared unconstitutional and are now therefore included in the decision. The main stream press is fawningly liberal in its Obama adulation, so let’s not criticize that part of the decision.

Even the New York Times op-ed contributor Jeff Shesol pointed out yesterday that Justices Will Prevail. His article cautions Obama on going overboard, as Roosevelt did, in his rants against the court. He suggests that Obama is piling on because of a Washington Post poll suggesting that 80 percent of the public were against the decision. Shesol neglected to mention another poll showing that 60 percent of the public favored the decision. This, an example of the main stream press at work.

It is hard not to conclude that Obama seeks to control only opposing speech and is apparently working with his Democratic congressional majorities to do so. What a shame. Freedom of Speech is the very foundation upon which our Republic is built.

Tom Motherway

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Unions Cost Taxpayers Money

Representative Steve King from Iowa has a hell of an idea on How to Save $11.4 Billion This Year, posted March 4th in The American Spectator. Repeal the Depression-era Davis-Bacon Act, a subsidy designed to protect American blacks from being barred from construction jobs by mandating “prevailing wages” in public contracts. In practice prevailing wages are inflated union wages. As King points out, “Davis-Bacon wage rates are on average 22% higher than the standard wage rate in an area. Similar Heritage research revealed that, under Davis-Bacon law, the government pays four workers artificially inflated wages the same price it could pay five workers the local market rate.” So Obama’s “stimulus” which requires Davis-Bacon wages either costs the taxpayers a 22% wage subsidy premium or decreases construction employment by 20%!

So you would hope that given the serious deficit and 9+% unemployment, Obama would embrace this practical idea. Alas, you would be wrong. As pointed out editorially in yesterday’s WSJ, the White House is all about, Procuring the Union Agenda. Seems that Joe Biden’s “Middle Class Task Force” is drafting an Executive Order for Obama that would “oblige government procurement agencies to give contracts to “responsible contractors” who pay workers well and offer higher health, pension, sick leave and other benefits. These new mandated labor standards would have to be enforced across a company, not just at the unit bidding for a contract.” It is this new twist that puts the Davis-Bacon Act on steroids!

Unlike the disjunctive, “EITHER inflate taxpayer costs OR decrease employment” of Davis-Bacon, this executive order by expanding Davis-Bacon beyond the bidding unit will “BOTH inflate costs AND decrease employment.” The greatest adverse impact here is on small businesses, formerly the job creation engines of this economy!

So instead of competitive bidding to get the best quality at the best price, we have the Obama administration doing the unions’ bidding. Obama is owned by the unions; at least they own the biggest part of him!

Tom Motherway

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NJ’s Chris Christie-”No More Road Down Which To Kick the Can”

Another honest politician telling it like it is, Chris Christie told 200 of New Jersey’s mayors that the old game of tax and spend is over. See Ron Smith’s Baltimore Sun post, A leader opts for painful honesty in the Garden State.

“We have no time left,” said the governor, “We have no room left to borrow. We have no room left to tax. So we merely have time left to do this. We are all reaching the edge of a cliff. And it reminds me a bit of that part of ‘Butch Cassidy and the Sundance Kid’ where he had the seminal decision to make. So what did they do? They held hands and jumped off the cliff. We have to hold hands at every level of government, state, county, municipal, school board. We have to hold hands and jump off the bridge.”

“Governor Christie has wasted no time in implementing budget freezes through executive action. No doubt there will be a political firestorm in New Jersey as the pinch is felt by politically powerful entities such as the teachers, police and firefighters unions. Whether he can survive tackling the growing fiscal crisis with actual solutions is the question. He told the mayors to get ready for cuts in state aid in his upcoming budget, which will be presented March 16, but he promised he would give them a hand by implementing pension, benefit and arbitration process reform, something that will be bitterly opposed by the aforementioned unions.”

Ya gotta like this guy. We need a lot more like him–telling it like it it is. Hopefully voters will be smart enough to listen!

Tom Motherway

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Tenure, Unions, Administrative Bloat=Public School Education

Today’s WSJ editorial, No (Tenured) Teacher Left Behind, addressed the problem of tenure in our public school systems. Tenure, the contractual right not to face employment termination without just cause, has been used in colleges and universities to insure academic freedom. It’s used in the federal judiciary to guarantee judicial independence. It has become a handicap to competent jurisprudence and quality secondary public education.

While academic freedom at the university level can arguably be justified given the variety of disciplines and research orientation, there is no possible justification for tenure at the secondary level. At the university level tenure is earned by research and publication over several initial years of work; if not granted after a stated period it is never granted. At the secondary level public employee teachers are granted tenure as a matter of course, typically after three years. No real qualification is required other than not showing up on a police blotter during those initial years! Public school administrators typically find less than 2% of new teachers unsatisfactory even though students fail to meet basic academic standards year after year and even in LA where the drop out rate is 35% and growing. Finally, “academic freedom” at the primary and secondary levels is an oxymoron!

Tenure as fostered by the teachers unions begets the mediocrity for which unions are generally known. There is no striving for excellence only striving for conformity and strength in numbers. As I have said ad nauseam, public employee unions have no place in our political system; the unholy alliance between union members and politicians will bankrupt our society. This is especially true in education where we are dealing with our most precious resource, our future!

What about Nevada? We spend way in excess of inflation, a 48% increase in Nevada’s education spending from 2006 to 2009! Yet we consistently have test scores lower than the national average. (See the National Center for Education Statistics)

We need a system in which excellent teachers can be retained and financially rewarded. We need a system in which the deadwood, protected by tenure and teachers unions, can be discarded.

So when you hear cries against education cuts please remember that spending has grown dramatically beyond the combination of population growth and inflation over the last several years. Student progress as measured by test scores has not kept pace. So a logical conclusion would be to look for educational barriers elsewhere. I submit that tenure along with teachers unions would be good places to start.

Tom Motherway

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