Weekly Audit: A Recall Fight Brewing in Wisconsin?

 

By Lindsay Beyerstein, Media Consortium blogger

Tens of thousands of people continue their peaceful occupation of the Wisconsin state capital to protest a bill that would abolish most collective bargaining rights for public employees. As the protests entered their eighth day, GRITtv with Laura Flanders was broadcasting from Madison, Wisconsin in collaboration with The Uptake.

Flanders interviewed Nation journalist and seventh-generation Wisconsinite John Nichols. Nichols and fellow guest Matthew Rothschild of The Progressive noted that the bill isn’t just an attack on collective bargaining rights. The bill would force public sector unions to hold recertification votes every year, which would put their very existence on the line annually. “The unions realize that this is a threat to their very existence,” Rothschild explained.

A game of chicken

The Wisconsin state Assembly begins debate on the bill on Tuesday, but 14 Democratic senators remain in hiding in Illinois, depriving the Senate of the quorum it needs to vote on the bill. According to an obscure procedural rule, the state Senate can still pass bills on non-fiscal matters.

The result is that a game of chicken is about to begin, in which the Republicans will attempt to pass as many non-fiscal bills hated by Democratic senators as possible, such as legislation mandating photo ID for voters, in an attempt to provoke their colleagues into coming back home to vote on the fate of public sector unions.

The Democrats don’t control the state Senate at the best of times, so it’s not clear why they would be more eager to come home to lose on voter ID and public sector unions. As of Tuesday, the legislators in exile showed no signs of wavering, telling CBS that they were waiting to hear from the governor.

“I think if this [bill] gets pushed through, we’re going to have a recall effort and take this governor out,” Rothschild predicted.

Solidarity

An estimated 80,000 protesters gathered in Madison, Wisconsin to protest a Republican-backed budget bill that would abolish collective bargaining rights for most public employees, Democracy Now! reports.

The bill would spare the bargaining rights of unionized police officers and firefighters. However, Mahlon Mitchell, president of the Wisconsin Professional Firefighters Association, tells host Amy Goodman that Wisconsin’s firefighters and police officers stand with other public sector workers. “An assault on one is an assault on all,” Mitchell said.

Union busting, not budget fixing

Matthew Rothschild in The Progressive argues Gov. Walker’s real agenda is union busting, not budget repair. Walker claims that he is forced to abolish collective bargaining rights because the state can no longer afford them. But this is a matter of priorities, not a true fiscal emergency. Walker is asking working people to pick up the tab for his economic agenda. During his brief tenure in office, Walker refused $800 million in federal funds for high speed rail, which would have created jobs and stimulated the economy. He has also pushed through $117 million in tax breaks.

The captain of the Superbowl-winning Green Bay Packers, the NFL’s only non-profit team, has come out in solidarity with the protesters in Wisconsin, Dave Zirin reports in The Nation. Captain Charles Woodson said in a statement:

Last week I was proud when many of my current and former teammates announced their support for the working families fighting for their rights in Wisconsin. Today I am honored to join with them. Thousands of dedicated Wisconsin public workers provide vital services for Wisconsin citizens. They are the teachers, nurses and child care workers who take care of us and our families. These hard working people are under an unprecedented attack to take away their basic rights to have a voice and collectively bargain at work.

“Budget crisis” theater

Forrest Wilder in the Texas Observer notes that the Lone Star State is facing a $27 million shortfall of its own. He argues that Republicans are construing this relative small shortfall as a “budget crisis” in order to imbue their crusade against public services with a false sense of urgency. The budget gap could be bridged with a small and relatively painless tax increase, Wilder notes, but Republicans only want to talk about cuts.

Raise our taxes

Fifteen thousand Illinoisans massed in the state capital with an unusual demand for their state legislators: Raise our taxes! The Save Our State rally was one of the largest citizen assemblies in the history of the state legislature, David Moberg reports for In These Times. The event was organized by the Responsible Budget Coalition (RBC), an alliance of more than 300 organizations including social service agencies, public employee unions, and religious and civic groups. The RBC is calling on legislators to fix flaws in the Illinois tax structure that threaten essential services and the long-term financial health of the state.

No help for 99ers

Rep. Barbara Lee’s (D-CA) bid to attach a 14-week unemployment insurance extension for Americans whose benefits have run out (known as 99ers because they have already been unemployed for at least 99 weeks) to the continuing resolution to fund the government proved unsuccessful last week. Ed Brayton of the Michigan Messenger reports that the provision foundered late last Wednesday due to a procedural objection.

This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

 

Weekly Audit: The Real Legacy of Reaganomics

 

By Lindsay Beyerstein, Media Consortium blogger

Sunday marked the 100th anniversary of the birth of B-movie actor-turned-conservative president, Ronald Wilson Reagan. On the eve of the centennial, economist Yves Smith talked Reaganomics on the Real News Network. Smith argues that Reagan’s real legacy is the deregulation of the U.S. economy that set the stage for the economic meltdown of the late 2000s:

But [with] financial services, you have companies that have state guarantees. That’s the bottom line with the banking system. Ever since the 1930s, we in advanced economies have made the decision we’re not going to let the banking system fail. So if you don’t regulate banks, you have set up the situation that we have now, which is that you have socialized losses and privatized gains. And what have we seen come out of that? Financial crises. When we had a heavily regulated financial system, we had nearly 40 years of hardly any financial crises. When we started deregulating the banks, you saw increasing in frequency and increasing in significance financial crises directly resulting from that.

Spot of Tea?

Ordinary Britons are rallying to the defense of the welfare state. Faced with the deepest public spending cuts in living memory, citizens are taking to the streets to force deadbeat companies to pay their taxes, Johann Hari reports in The Nation. Their federal government has pledged to slash £7 billion in public spending. Cuts to subsidized housing alone will force 200,000 people out of their homes.

A group of friends in a local pub were galvanized by the news that Vodafone, one of the UK’s leading mobile phone companies, owed an astonishing £6 billion in back taxes. Calling themselves UK Uncut, the friends staged a protest outside Vodafone headquarters in London. The meme went viral. In the following days, several Vodafone stores were temporarily paralyzed by peaceful sit-ins.

Hari argues that the success of UK Uncut can teach American progressives a lot about how to build a grassroots counterpart to the Tea Party.

Persistent vegetative states

Big or small, liberal or conservative, state governments are screwed. That’s the upshot of Paul Starr’s latest essay in The American Prospect. Unemployment remains at recession levels and there is little political will to raise taxes. States can’t deficit spend like the feds do. So, the only option is public service cuts, which means firing teachers, doctors, firefighters, and other public workers.

Starr argues that the economic stimulus was a good start, but one that didn’t go far enough. As part of the stimulus, the federal government picked up a larger share of the states’ Medicaid costs. This was a good thing, in Starr’s view, because the extra federal dollars saved jobs while providing health care for the poor. Starr argues that state budget woes during recessions are so predictable, and the consequences so dire, that the Medicaid subsidy should kick in automatically whenever unemployment rises past a predetermined threshold.

Anti-union bill dead in CO

A bill to end collective bargaining for public employees in Colorado died in committee this week, according to Joseph Boven of the Colorado Independent. The bill would have abolished an executive order signed by former Gov. Bill Ritter, which gave state employees the right to organize. If the bill had been enacted, this kind of organizing would become illegal. This bill, sponsored by Sen. Shawn Mitchell (R-Broomfield), was just one of many attempts by Republicans to scapegoat public sector unions for what Mitchell calls the “financial Armageddon” facing state governments.

Smurfs rob Moms

“Smurfing” is money laundering slang for recruiting a lot of low-level accomplices to move money in untraceably small increments. But the word may soon have a new derogatory connotation.

Kevin Drum of Mother Jones reports that a kids’ video game, Smurfs’ Village, is depleting parents’ bank accounts, one wagon of Smurfberries at a time. Capcom’s game offers kids the chance to build the village from scratch. Along the way, they can pay real money for in-game resources. One mother was shocked to receive a $1,400 bill from Apple because her daughter bought innumerable imaginary props, such as $19 “buckets of snowflakes,” and a $100 “wagon of Smufberries.” The purchases require a password, but critics say it’s too easy for clever kids to circumvent the security. As Drum says, if adults want to waste their real dollars on virtual Farmville paraphernalia, that’s fine, but such a racket has no place in kids’ games.

This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

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