Posts Tagged Scott Walker

Presidential election: Mitt Romney may win the race because he ignored conservatives’ advice. – Slate Magazine


The Secret of Mitt Romney’s Success

Smile at the conservatives. Then ignore them.

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Romney has been sounding notes of bipartisanship since the first presidential debate

Photograph by Emmanuel Dunand/AFP/Getty Images.

 

If Mitt Romney wins the election, it will be because he ignored conservatives. After he won the primaries, many of the most prominent voices in the movement plead with him to run loud and proud as a conservative and to campaign overtly on conservative ideas. He never did that, and he’s ending the campaign on a moderate note, a move his strategists believe will capture the disaffected Obama voters he needs to win the election.

The strategy appears to render a verdict on a long-standing debate in conservative circles over whether candidates can campaign on conservative ideas like privatizing Social Security, offering Medicare vouchers, or drastically shrinking the social safety net. It also gives us some limited insight into the inner heart of Mitt Romney and how he might govern. At least tactically, he’s acted pragmatically, not ideologically.

Starting in the spring and spilling over into the summer, Romney got a regular dose of advice from the most prominent public conservatives: Bill Kristol, Charles Krauthammer, and the Wall Street Journal editorial page. They all counseled him that he couldn’t win on a platform of not being Barack Obama. He had to unfurl the conservative banner, and proclaim these bold ideas from the rooftops. When Wisconsin Gov. Scott Walker survived a recall vote, it seemed to ratify the idea that a person could govern as an unabashed conservative. Walker said that the one lesson from the recall was that he should have been more open about his plans. Indiana Gov. Mitch Daniels made a pragmatic rather than political case. Unless Romney explained his conservative solutions as a candidate, he’d never have a mandate for governing. 

Romney resisted these appeals for weeks—and then he picked Paul Ryan. For a moment, it suggested that he’d been quietly listening to the conservative commentators all along. Ryan was a twofer. He had put conservative principles in practice and he was a leading advocate of the loud and proud approach. He had been a member of the Romney advice chorus before he was picked. In 2004, when President George Bush pushed for private Social Security accounts, many Republicans thought the idea was toxic. Ryan, however, campaigned on it, arguing when he won that if you bravely backed the idea voters would reward you.  

But picking Paul Ryan was not the same as running on Paul Ryan’s programs. The Romney campaign boasted that selecting Ryan meant that Romney was making tough decisions and backing conservative solutions, but there was very little evidence that Romney and his campaign were actually going to campaign on those solutions. Medicare is a good example. Romney distanced himself from the details of the Ryan plan—absolving himself of the tricky math questions by arguing that private-sector competition would solve the problem of maintaining quality care while reducing cost. But then he never really ran on the idea itself. Giving a speech in which you savage the president for cutting Medicare is not the same as running on your ideas for the program. 

In fact, Paul Ryan seems more changed by running with Mitt than the other way around. How transformed is Ryan? (Politico called him Mini-Mitt) He recently gave a speech on income inequality. That’s a far distance from running on conservative principles. This isn’t to say that conservatives are not concerned about income inequality—Ryan talked about it before he was a national candidate—but income inequality is not an issue conservatives consider in their wheelhouse. It is often the case that conservatives think that talk of income inequality is an attempt to pit one class against the other. Indeed, Mitt Romney thought this; he once said that talk of income inequality should be confined to “quiet rooms,” and not the campaign trail. When Democrats raised the issue of distribution of wealth and inequality, he claimed they were practicing the “politics of envy.”

Wisconsin Gov. Walker rendered the final verdict on the watering down of Paul Ryan. “I was enthused when Mitt Romney picked Paul Ryan because I thought that was a signal that this guy was getting serious, he was getting bold,” Walker told a local radio host. “I just haven’t seen that kind of passion I know that Paul has transferred over to our nominee.” Walker believed that Romney was in synch ideologically with Ryan, but that he wasn’t being vocal enough about it. “They need to have more of him rub off on Mitt, because I think Mitt thinks that way but he’s gotta be able to articulate that,” he said.

He wasn’t the only one who noticed. The Weekly Standard reporter Stephen Hayes said the Romney campaign has reverted to the pre-Ryan moment. Bill Kristol also called for more brio. But now no one is making too big a fuss because Romney’s moderate Massachusetts strategy has improved Romney’s standing. It’s conventional Republican wisdom that Romney succeeded in the first debate because voters—particularly married women voters—found him to be a likeable, moderate fellow. The campaign has been running with this ever since. Previously Romney had been downplaying his conservative positions. Now he is either running away, or, in some cases—like his position on legislation to allow companies to deny employees contraception coverage—actively changing them to a more moderate posture. (If the election were held on New Year’s Day, he might come out for Obamacare.)

This leads to some head spinning conversations with Romney strategists and surrogates. More than once they have boasted that what people are now seeing is the true Romney. They remind you that their candidate had to withstand all of those accusations that he was “Moderate Mitt” during the primary season. That’s proof that he’s always been the far more reasonable, centered candidate. What makes you reach for the Dramamine is that when Romney was being called “Moderate Mitt” he and his campaign were steadfastly rebutting the label. It was about this time that Romney started calling himself “severely conservative.”

In the end, all of this shape-shifting leads to confusion about what Mitt Romney will govern. Will it be the fellow who was trying to court conservatives in the primaries or the one who is appealing to moderates now? Or, will he be pragmatic, calculating his political positions based on the composition of the Congress and the forces in the larger electorate he’ll still have to appeal to once he’s in office?

Romney has been sounding notes of bipartisanship since the first presidential debate on Oct. 3. The election is all about coming together with Democrats, he says. “I’ve got to make sure and reach across the aisle,” Romney said at a recent campaign stop. “I gotta find, I know there are good Democrats who love America just like we do. I’m going to reach across the aisle to them and work together, put the interests of the people ahead of the politicians. We’ve gotta do this. It’s too critical a time. We can’t change course unless we change the way Washington is working.” It’s another shift in tone and it appears to be working—at least with many of the 200 undecided voters I’ve been corresponding with. It doesn’t seem to be costing Gov. Romney support with conservatives who are banking he’ll return to the fold when he’s in office.

Romney’s new spirit of bipartisanship actually seems in keeping with New Jersey Gov. Chris Christies, our most recent example of a big name Republican saying good things about the other side. Christie has been sharing the stage and praising President Obama for his fast response to Hurricane Sandy. It is completely in keeping with Christie’s reputation for calling it as he sees it—even if it might upset Republicans. That’s what works for Christie, as he recently told Esquire:

I caught a guy in high school who went on to play pro ball. His father was this quiet retired Marine drill sergeant. This kid threw a ninety-four-, ninety-five-mile-an-hour fastball. But he also had a good curveball. Freshman year one game, we made a guy look silly on two curveballs in a row — strike one, strike two. I called a third curveball. The kid hit it about 350 feet. That night I went to my friend’s house for dinner. And his father said to me in his quiet way, “Chris, let me ask you something. That third curveball: I couldn’t see from where I was standing. Did you call it or did Scott shake you off to the curveball?” And I said, “No, I called it.” And he put his fork down on his plate — I can close my eyes and still see this guy doing this — and he said to me, “Don’t ever do that again.”

If you’re gonna get beat, get beat on your best pitch.

Mitt Romney has always seemed awkward playing the severe conservative. It’s not his best stuff. He might lose this thing—the polls in the battleground states aren’t looking good—but since Oct. 3 he’s been going with his best pitch. He’s no longer taking advice from the Scott Walkers of the world. He is listening to the more pragmatic Chris Christies. If Romney loses, those will be the battle lines for the next GOP contest.

 Presidential election: Mitt Romney may win the race because he ignored conservatives’ advice. – Slate Magazine.

 

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Cagle Post » Football: United, We Root for Socialism


 

  

JOHN TOTH

Football: United, We Root for Socialism

 

 

Our country has been united by – of all things – bad football refereeing.

Yeah, the referees blew the call. Yeah, the replacement refs were lousy.

But the now-infamous big, bad call actually had a positive effect on the country during this heated political season. It diverted our attention from the battle between the “illegal Kenyan” and the “corporate raider/tax dodger.”

And, it actually put both political parties on the same page, at least on this issue.

Pat Bagley / Salt Lake Tribune

“Paul (Ryan) was very angry that the Green Bay Packers, he believes, won, and the referees took it away from them,” said Mitt Romney.

“I’ve been saying for months, we’ve gotta get our refs back,” President Obama said.

“After catching a few hours of sleep, the #Packers game is still just as painful,” tweeted Wisconsin Gov. Scott Walker (R), ending it with the hash-tag: “#Returntherealrefs.”

If Walker wanted the union-member referees back, you know that the replacements were lousy.

RELATED: How the NFL is Like Socialism

See what happens when we all work together for a cause? The real refs are back. We did it, people.

The referees had been locked out since early June, when negotiations over a new contract between the National Football League Referees Association and the NFL broke down.

It’s amazing what gets the country’s attention. But, if we can reach common ground on an issue, all the better.

At least all teams were in the same boat. The referees were the same poor quality all over the NFL.

I personally think it brought an added feature to the game that reliable referees were not be able to contribute. Who would have thought that the ruling on a catch would be as exciting as the actual catch?

But this hoopla was not just about blown calls. It was also about the NFL’s stand against elements trying to upset its socialistic revenue flow.

And, of course, also about how the unionized referees wanted a bigger piece of the profit pie.

About 70 percent of the NFL television revenue, which amounts to more than $4 billion annually, is doled out equally among the professional teams. Equal distribution of wealth is akin to socialism.

Then, the teams need huge stadiums to play in – huge public stadiums, built with tax dollars.

“On average, taxpayers fund 60 percent of new stadium costs. In the last 20 years, the NFL’s take of taxpayer subsidies has amounted to $17 billion,” writes Matthew Stevenson for the website newgeography.com.

If that’s not an example of socialism, I don’t know what is.

The owners as a group didn’t really care how good or bad the calls were. In their rich, “socialist” world (how ironic), that is not a major concern. Plus, all the teams were suffering … equally.

They just didn’t plan on the replacements messing up so badly that even the national political campaigns got into the action
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The owners ended up caving in to public pressure, but their money is guaranteed, no matter the calls. Football is protected from little bumps in the road like blown calls and union referees who want a bigger pension fund. It’s protected by a socialist system of distributing revenues.

It puts a financial unbrella over their heads that is hard to budge.

I am not saying whether this is good or bad, only that of all the things money can buy, this one is off the chain – it can buy socialism. The NFL is living proof of that.

Now, let’s review that play again for the umpteenth time. That was a horrible call! Like the owners really cared. Socialism also has a pacifying effect.

 Cagle Post » Football: United, We Root for Socialism.

 

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Wisconsin Judge Strikes Down Law Against Collective Bargaining | Alternet


 

Wisconsin Judge Strikes Down Law Against Collective Bargaining

 

Supporters of a recall effort against Wisconsin Governor Scott Walker sing a union solidarity song outside the State Capitol Building as the poll numbers came in on Tuesday, June 5, 2012. (John Hart,AP/Wisconsin State Journal)

Wisconsin Gov. Scott Walker’s signature law slashing collective bargaining rights for public employees has already taken one judicial hit, and now it’s taken another:

Dane County Circuit Judge Juan Colas ruled that the law violates both the state and U.S. Constitution and is null and void. The ruling comes after a lawsuit brought by the Madison teachers union and a union for Milwaukee city employees.

Walker spokesman Cullen Werwie said he was confident the decision will be overturned on appeal.

It’s not clear if the judge’s ruling means the law is suspended. Scott Walker may have survived recall, but this fight is not over.

3:26 PM PT: You can read the judge’s ruling here.

3:42 PM PT: To clarify, though parts of the law have previously been struck down, the majority-conservative Wisconsin Supreme Court overturned that—which may be a clue to the future of this ruling as well. One hopes that Judge Colas wrote very carefully with that in mind.

 Wisconsin Judge Strikes Down Law Against Collective Bargaining | Alternet.

 

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Mitt Romney is working hard to avoid offering any specifics about his policies. – Slate Magazine


Evasive Maneuvers

Mitt Romney doesn’t want to say anything, specifically.

Mitt Romney

To find out what Mitt Romney will do as president, you might have to vote for him first

Gerardo Mora/GettyImages.

 

Mitt Romney has a problem with specifics. Since Scott Walker’s victory in Wisconsin, a growing number of Republicans have been calling for something more from him. His responses on questions from tax reform to immigration have been thin or nonexistent. When reporters tried to get an answer about the candidate’s reaction to the Supreme Court’s ruling on Arizona’s immigration law, his spokesperson was so evasive, my colleagues might want to plant a mulberry bush in the press section to make the next round of the game more lively. Usually you have to win the White House before you can be that skilled at ducking and weaving.

But wait. The Romney campaign told Politico’s Jonathan Martin, when he wrote about this topic, that they have offered an “unprecedented” level of specificity. How can these two things both be true? To understand the disconnect, think of an ad for a prescription drug in a magazine. On one page there is an uplifting, well-lit picture of a healthy woman walking through a sunlit glen on the way to success. On the following two pages is all the fine print and possible side effects. Romney is specific about the glen and the breeze—tax cuts; more jobs for everyone; innovation; no more waste, fraud, and abuse—but doesn’t want to talk so much about the two pages of complexity and possible consequence. 

Is Romney offering an “unprecedented” level of specificity? This is an exciting claim, but it is contradicted by history. Next to me is my worn copy of Renewing America’s Purpose, the 450-page volume of George W. Bush’s policy addresses and proposals from 1999-2000. By this time in the 2000 campaign, Bush had unveiled mountains of detailed policy, including a plan to offer workers the ability to invest some of their Social Security money in private accounts. “Mr. Bush is dominating the policy debate,” the Economist wrote 12 years ago this month. “[He] has seized on the opportunities to appear both bipartisan and statesmanlike.” 

It’s also hard for the Romney campaign to boast about specificity when the candidate is doing the opposite. He’s talked about why he won’t give details because they were used against him in his Senate race and how his programs can’t be evaluated by any experts because he hasn’t provided details.

How then can the Romney campaign claim to be so specific? The same way politicians like to believe that a response is the same as an answer. In background material offered by the campaign to show where Romney has been specific, many of the items were not so much Romney proposals but criticisms of President Obama. (This is also true of Romney’s 160-page briefing book [pdf] entitled Believe in America, which should have the subtitleBecause Obama Doesn’t.) A host of statements were generalities—a quotation from Nassim Nicholas Taleb’s The Black Swan outlining mistakes that caused Wall Street’s collapse, and calls for “dynamic regulations.” In the section on financial system reform, Romney’s adviser Glenn Hubbard is quoted from a Wall Street Journal article, saying that Romney would replace “the new system for dismantling failing financial companies that was created as part of the 2010 Dodd-Frank financial overhaul law with a new system, which [Hubbard] declined to specify.“ 

The Romney campaign is specific about some things. Romney will enact a 5-percent cut of nonsecurity spending on Day One of his presidency. He’ll privatize Amtrak and reduce subsidies for NEA and the Corporation for Public Broadcasting—all of which is very specific but not highly consequential policy. He will repeal the Affordable Care Act, which is very specific. But he refuses to get specific about what will replace it. He’s more specific about Medicare—seniors would be provided with a specified amount of money to purchase benefits, and private plans could compete—but details about how benefits would keep up with health costs are vague.  

When CBS’s Bob Schieffer asked Tim Pawlenty, who launched his presidential campaign on the idea of telling hard truths, where Romney was being specific, the former Minnesota governor mentioned tax reform. Naming an issue area is not being specific. Adviser Eric Fehrnstrom offered Romney’s plan for reducing the corporate tax rate as an example of specificity. Saying you’re going to reduce corporate tax rates is the easy part; naming the loopholes to do so is harder. The word “loopholes” appears only twice in the 160-page Romney policy document: “Meanwhile, loopholes favor those with the best lobbyists. If we close loopholes and lower the tax rate, the American people and corporations will win.” (#winning).

When Gov. Romney was asked just what loopholes he would close to lower corporate and individual taxes, he said he’ll work with Congress on that when he’s elected. One of the funniest things Nancy Pelosi ever said was that Congress had to pass the Affordable Care Act to know what was in it. Romney makes a variant of that claim here: To know what he will do, we must elect him. 

The Romney campaign responds that the president has not been specific, either. This is true. The best example was Obama’s refusal to back the specifics of the Simpson-Bowles commission. (It was a commission he commissioned which makes this a sin of commission.) But just because President Obama’s posture is slouchy doesn’t erase the fact that Romney is in the fetal position. Implicit in the Romney campaign’s criticism of President Obama’s specificity is a standard of how detailed one should be. But the Romney campaign would not like that standard to be applied to its candidate. 

Obama may not achieve the Platonic ideal of specificity, but he’s well ahead of Mitt Romney. On corporate loopholes, for example, President Obama has proposed a host he would remove (found on pages 202-05 of this Treasury Department explanation of the administration’s revenue proposals). The largest one (explained on pages 73-74) would close loopholes (“tax expenditures”) for the wealthy by reducing (but not eliminating) the value of itemized deductions. Obama’s framework for reducing corporate tax rates can be found here.

Presidents are always more specific than their challengers because they have to actually put things on paper. In fact, it is President Obama’s specificity that Mitt Romney is actually running against, in the form of the Affordable Care Act, the Dodd-Frank Wall Street reform, the Recovery Act, and the auto bail-out. Obama can’t both lack a plan for dealing with Medicare costs and be attacked for hatching the Independent Payment Advisory Board that is supposed to hold down Medicare costs. There’s more than enough in all of that for voters to evaluate the president’s priorities, his manner, and his effectiveness on those policies. For a challenger without a recent governing past or a rich history, specificity is one way to evaluate him as a possible president. 

So is Mitt Romney trying to get away with something? At the moment, yes, but there’s plenty of time left in the campaign for him to get specific. Imagine if Gov. Romney picked Paul Ryan as his running mate. He’d go from policy avoidance to basing his entire campaign on one of the most detailed campaign documents ever: the Ryan budget. The political debate would be filled with plumes of charts and graphs. The big important debate we should be having about the role of government in American life would finally start. The speeches would probably get no shorter and the policy books would not shrink, but we might actually find something useful in them.

 Mitt Romney is working hard to avoid offering any specifics about his policies. – Slate Magazine.

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Campaign cash is the gift that keeps on giving – Salon.com


THURSDAY, JUN 14, 2012

Campaign cash is the gift that keeps on giving

With super-PACs the pol can shrug and say: “Not my doing. It’s the Super Pac that’s slinging the mud.”

 

Campaign cash is the gift that keeps on giving

Former Massachusetts governor and Republican presidential candidate Mitt Romney (Credit: Steve Marcus / Reuters)

If you’re visiting a candidate this summer and looking for a thoughtful house gift, might we suggest a nice Super PAC? Thanks to the Supreme Court and Citizens United, they’re all the rage among the mega-wealthy. All it takes is a little paperwork and a wad of cash and presto, you can have, as The Washington Post describes it, a “highly customized, highly personalized” political action committee.

It’s easy — Super PACs come in all amounts and party affiliations. You don’t have to spend millions, although a gift that size certainly won’t be turned aside. Cable TV tycoon Marc Nathanson got a Super PAC for his friend, longtime Democratic Congressman Howard Berman from California, and all it cost was $100,000. Down in North Carolina, Republican congressional candidate George Holding received a handsome Super PAC that includes $100,000 each from an aunt and uncle and a quarter of a million from a bunch of his cousins. Yes, nothing says family like a great big, homemade batch of campaign contributions.

You can start a Super PAC on your own or contribute to one that already exists. Super PACs are available for every kind of race – presidential, congressional or statewide. But there are other ways you can help buy an election. Look at the Wisconsin recall campaign of Republican Governor Scott Walker. At least fourteen billionaires rushed to the support of the corporate right’s favorite union basher. He outraised his Democratic opponent, Milwaukee Mayor Tom Barrett, by nearly eight to one. Most of his money came from out of state. More than sixty million dollars were spent, $45 million of it for Walker alone.

Here are just a few of the satisfied buyers:

Wisconsin billionaire Diane Hendricks contributed more than half a million dollars on Scott Walker’s behalf. Her late husband built ABC Supply, America’s largest wholesale distributor of roofing, windows and siding.  Fearful the United States might become “a socialistic ideological nation,” she’s an ardent foe of unions and, in her words, “taxing job creators.” True to her aversion to taxes, she paid none in 2010, despite being worth, according to Forbes magazine, about $2.8 billion dollars.

Before he launched his crusade against the collective bargaining rights of working people, Governor Walker had a conversation with Diane Hendricks, in which she asked, “Any chance we’ll ever get to be a completely red state and work on these unions… and become a right to work [state]? What can we do to help you?”

Walker replied, “We`re going to start in a couple weeks with our budget adjustment bill. The first step is, we`re going to deal with collective bargaining for all public employee unions, because you use divide and conquer.”

And so he did.

Walker also hauled in checks for nearly half a million from the Texas oligarch Bob Perry. He made his fortune in the home building business and is best known nationally for contributing four and a half million to the Swift Boat campaign that smeared the Vietnam War record of Democratic presidential candidate John Kerry back in 2004.

In Texas, Bob Perry is known for his cozy relationship with the state’s Supreme Court.  He once gave money to every one of its nine elected judges.  And guess what?  Those same nine judges later overturned an $800,000 judgment against his building company for faulty construction.  Bob the Builder, who’s naturally eager for help in the cause of tort reform — that is, making it hard for everyday people to sue corporations like his for malfeasance — has so far given four million to the pro-Romney Super PAC, Restore Our Future, and millions to Karl Rove’s American Crossroads Super PAC.

Then there’s casino king Sheldon Adelson, who gave Scott Walker’s cause $250,000. That’s a drop in the old champagne bucket compared to the $21 million Adelson’s family gave to the Super PAC that kept Newt Gingrich in the race long after the formaldehyde had been ordered.  According to The Wall Street Journal, Adelson did not long mourn Gingrich’s passing, and has now given at least $10 million to the Restore Our Future Super PAC supporting Romney. By all accounts, what he expects in return is that his candidate hold unions at bay and swear that Israel can do no wrong.

Next up on Scott Walker’s list of beneficent plutocrats: Rich DeVos, owner of the Orlando Magic basketball team and co-founder of the home products giant Amway, which, thanks to Republican leaders in Congress, once shared in a $19 million tax break after a million-dollar DeVos contribution to the Republican Party.  He’s a long-time member of the secretive Council for National Policy, a who’s who of right-wing luminaries.

Let’s not forget cowboy billionaire and born again Christian, Foster Friess, Rick Santorum’s moneyman, who told us about the good ol’ days when women would “use Bayer aspirin for contraceptives. The gals put it between their knees and it wasn’t that costly.” And Louis Moore Bacon, the billionaire founder of the hedge fund Moore Capital – which in 2010 was fined $25 million for attempted commodities manipulation. A big backer of Romney, he, too came to Walker’s aid in Wisconsin.

So did Dallas oil and gas wildcatter Trevor Rees-Jones, who’s given millions to Karl Rove’s American Crossroads, in anticipation of another administration as friendly to taxpayer subsidies for big oil as the Rove-Bush White House. Last year, Rees-Jones’ company, Chief Oil, and a partner sold to Chevron nearly a quarter million acres in northeast America’s Marcellus Shale – the epicenter of the raging controversy over fracking. Estimated price: one billion dollars.

We could go on and name more, but you get the picture. These are the people who are helping to fund what the journalist Joe Hagan describes as a “tsunami of slime.” Even as they and their chosen candidates are afforded respectability in the value-free world of plutocracy, they can hide the fingerprints they leave on the bleeding corpse of democracy in part because each Super PAC comes with that extra special something every politician craves: plausible deniability. When one of their ads says something nasty and deceitful about an opponent – when it slanders and lies – the pol can shrug and say: “Not my doing. It’s the Super Pac that’s slinging the mud, not me.”

And that’s how the wealthy one percent does its dirty business. They are, by the way, as we were reminded by CNN’s Charles Riley in his report, “Can 46 Rich Dudes Buy an Election?” almost all men, mostly white, “and so far, the vast majority of their contributions have been made to conservative groups.”  They want to own this election.  So if there are any of you left out there with millions to burn, better buy your candidate now, while supplies last.

 Campaign cash is the gift that keeps on giving – Salon.com.

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The Lauzen Plan: How to Rein In a $3 Trillion Rogue Pension Elephant – Ralph Benko – Townhall Finance Conservative Columnists and Financial Commentary


 

The Lauzen Plan: How to Rein In a $3 Trillion Rogue Pension Elephant

 

Last week the voters decisively vindicated Gov. Scott Walker. America also saw overwhelming referenda victories over runaway public pension costs in San Diego and San Jose. America, finally, may be seeing daylight at the end of the tunnel of $3 trillion in unfunded state and local pension liabilities.

The daylight at the end of our tunnel also points a way for Europe to emerge from its own fiscal trauma. America has its own version of the eurozone crisis going on. A number of states rapidly are approaching insolvency. Illinois might be our very own Greece.

The Illinois state government is staggering under $83 billion in unfunded pension liabilities. Illinois holds the position of Pluto in the solar system of red ink graphed out by Illinois state senator Chris Lauzen and shared with legislators assembled at the American Legislative Exchange Council last year. According to Lauzen, Illinois has more than four times the combined general obligation debt + underfunded pension liabilities compared to its state general revenues.

Yet Illinois might help lead the way out. Why Illinois? As economist Herb Stein once observed, “If something cannot go on forever, it will stop.” Illinois is at the end of its rope. It has raised its income tax rates as high as they can go. The tax structure now is driving out two residents for every new one who moves in, earning the taunt “Land of Leavin’.” It has cut spending on essential government services. Now … it must confront the $83 billion rogue elephant in the room.

In Hunter Thompson’s immortal words, When the going gets weird, the weird turn pro. Illinois’s legislators have taken “the weird turn pro” to heart. Illinois’s lurch toward solvency recently crept in on miniature horses’ hooves. The Illinois state legislature had positioned public employee pension reform as a centerpiece 2012 legislative issue. Then, instead, it spent the waning hours enacting legislation … to allow the disabled to use miniature horses as service animals.

What was really going on? The elite state politicos (Democrats, alas) wished to dodge the job of restoring solvency by responsibly reducing unsustainable obligations. Instead, there was a sneaky plan to fob the state’s staggering costs off on the local governments — and, thus, onto the property taxpayers — deflecting blame from state to local officials.

So, so to speak, a miniature Cavalry rode to the rescue of the citizens of the, too-aptly nicknamed, Sucker State. The session closed with miniature horses being elected service animals and without the people of Illinois being nefariously saddled with the pension obligations. “I think it was Churchill who said that the Americans always end up doing the right thing after they’ve tried every other alternative,” President Obama recently observed (in another context). Illinois, having tried all else, may be ready to do the right thing!

There is a simple, humane and practical solution to Illinois’s threatening insolvency: the “Lauzen Plan.” If tried successfully and emulated it promises to staunch the red ink threatening the viability of many states and municipalities. Lauzen is leaving the state Senate, after 20 years of service there, where he, together with other legislators of integrity, consistently predicted, and tirelessly formulated solutions to, the cascading fiscal catastrophe now manifesting. The officials blithely ignored or aborted the solutions.

Lauzen holds both a CPA and a Harvard MBA. He operates with a much higher degree of financial sophistication than most legislators. He tired of playing Cassandra (the princess with the gift of prophecy cursed never to be believed). So he recently has taken the nomination to become county board chairman of the half-million population Kane County. There, if elected as expected, he will have the power actually not simply to prophesize but to put credible reforms into place. Meanwhile, his Plan holds promise.

The Lauzen Plan shows how working from fundamental American principles can work to solve big problems. It is founded on dealing honestly with the numbers, dealing fairly with their implications, and relying on good small “r” republican officials to do the right thing between the contending stakeholders.

It turns out the apparently daunting problem of unfunded pension liabilities is tractable. The solution won’t require a bailout. It doesn’t ask the bondholders to take a haircut. It balances the interests of the lenders, the taxpayers, the recipients of government services, and the state employees.

Its first component is the easiest: staunching the abuses of the system. A minority of government employees are gaming the system and retire at a preposterously young age with obscenely high pension benefits — sometimes well over $100,000 a year. They do this with devices such as overtime. Allowing such abuses badly undermines the integrity of, and public support for, the retirement system. Moreover, it sullies the reputations of other, innocent, retirees.

Once the gaming is forbidden, two larger steps are required. Raise the age of pension eligibility to 62, the age of early retirement under social security, an earlier age than that which most of us get to retire. Raising the retirement age will require a recalibration of state workers’ expectations. Lauzen reports that many, perhaps most, state workers to whom he proposed this are not thrilled but recognize it to be an equitable recalibration of unsustainable overpromises. It provides for a very decent retirement and is not an outrageous price to pay for restoring security to their retirement plan. Lauzen further defuses grounds for recrimination with a grandfather clause and a transition period.

The final step? A “1% solution.” There is a cost of living adjustment, COLA, of 3% a year built into the system. Reducing the COLA to 2% a year is sufficient to close the remaining gap. Einstein, according to legend, said that the strongest force in the universe is compound interest. A 1% adjustment, according to Lauzen, is strong enough to pull Illinois back from the edge of the precipice and push it into solvency. While it is not a trivial concession from beneficiaries it is not onerous.

The Lauzen Plan — capping abuses, raising the age of benefits eligibility to a normal retirement age, and reducing the COLA by 1% — would rescue Illinois, he states, from the insolvency threatened by its $83 billion unfunded liability. Would other reforms, such as a migration to a defined contribution plan like the private sector and the federal government use, be beneficial? Should the ultimate resolution perhaps call for greater worker concessions to permit the reduction of tax rates to prevent Illinois from turning into a ghost state? This columnist believes yes. But if the Lauzen Plan works as expected it assuredly points to a decent path to safety. It would set an example for other states. And its principles might even be adaptable to Greece, Italy, Portugal, and Spain.

“If something cannot go on forever, it will stop.” America has decided: time to rein in the rogue elephant, unfunded pension liabilities, in the room. Scott Walker is vindicated. San Diego and San Jose pull the emergency cord. Next, something like the Lauzen Plan provides a clear map out from under the $3 trillion debacle.

 The Lauzen Plan: How to Rein In a $3 Trillion Rogue Pension Elephant – Ralph Benko – Townhall Finance Conservative Columnists and Financial Commentary.

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What happens if America loses its unions – The Washington Post


Harold Meyerson

Harold Meyerson

Opinion Writer

What happens if America loses its unions

By Harold Meyerson, Published: June 12

Are American unions history? 

 

In the wake of labor’s defeated effort to recall Wisconsin Gov. Scott Walker (R) last week, both pro- and anti-union pundits have opined that unions are in an all-but-irreversible decline. Privately, a number of my friends and acquaintances in the labor movement have voiced similar sentiments. Most don’t think that decline is irreversible but few have any idea how labor would come back.474

What would America look like without a union movement? That’s not a hard question to answer, because we’re almost at that point. The rate of private-sector unionization has fallen below 7 percent, from a post-World War II high of roughly 40 percent. Already, the economic effects of a union-free America are glaringly apparent: an economically stagnant or downwardly mobile middle class, a steady clawing-back of job-related health and retirement benefits and ever-rising economic inequality.

In the three decades after World War II the United States dominated the global economy, but that’s only one of the two reasons our country became the first to have a middle-class majority. The other is that this was the only time in our history when we had a high degree of unionization. From 1947 through 1972 — the peak years of unionization — productivity increased by 102 percent, and median household income also increased by 102 percent. Thereafter, as the rate of unionization relentlessly fell, a gap opened between the economic benefits flowing from a more productive economy and the incomes of ordinary Americans, so much so that in recent decades, all the gains in productivity — as economists Ian Dew-Becker and Robert Gordon have shown — have gone to the wealthiest 10 percent of Americans. When labor was at its numerical apogee in 1955, the wealthiest 10 percent claimed just 33 percent of the nation’s income. By 2007, with the labor movement greatly diminished, the wealthiest 10 percent claimed 50 percent of the nation’s income.

Today, wages account for the lowest share of both gross domestic product and corporate revenue since World War II ended — and that share continues to shrink. An International Monetary Fund studyreleased in April shows that the portion of GDP going to wages and benefits has declined from 64 percent in 2001 to 58 percent this year. The survey compared the United States with Europe, where the only other nations in which labor’s share declined were Greece, Spain and Ireland — countries whose economies are at death’s door. Our economy is nowhere near so weak, but as Americans’ ability to collectively bargain has waned, so has their power to keep all corporate revenue from going to top executives and shareholders.

When unions are powerful, they boost the incomes of not only their members but also of nonunion workers in their sector or region. Princeton economist Henry Farber has shown that the wages of a nonunion worker in an industry that is 25 percent unionized are 7.5 percent higher because of that unionization. Today, however, few industries have so high a rate of unionization, and a consequence is that unions can no longer win the kinds of wages and benefits they used to.

Deunionization is just one reason Americans’ incomes have declined, of course; globalization has taken its toll as well. But the declining share of pretax income going to wages is chiefly the result of the weakening of unions, which is the main reason American managers now routinely seek to thwart their workers’ attempts to unionize through legally questionable but economically rewarding tactics (rewarding, that is, for the managers).

The weakening of unions has had a huge political effect as well: the realignment of the white working class. Since the ’60s, exit polls have shown that unionized blue-collar whites vote Democratic at a rate 20 to 30 percent higher than their nonunion counterparts. The decline in union membership has weakened Democrats in such heavily white, increasingly deunionized states as West Virginia and Wisconsin — the main reason Republicans such as Walker have sought to reduce labor’s numbers. Liberals who have been indifferent to unions’ decline will find it difficult to enact progressive legislation in their absence.

Understandably, some liberals are searching for ways to arrest the economic decline of the majority of their fellow Americans in a post-union environment. I fear they’re bound to be frustrated. If workers can’t bargain with their employers, it can’t be done. If and when Big Labor dies — it’s on life support now — America’s big middle class dies with it.

 What happens if America loses its unions – The Washington Post.

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Canada Bracing for Massive Influx of Wisconsin Boat People « Borowitz Report


Canada Bracing for Massive Influx of Wisconsin Boat People

Coast Guard on Alert

 

 

OTTAWA (The Borowitz Report) – The Canadian coast guard was on alert today, preparing for what it fears could be a massive invasion of  boat people from Wisconsin.

Conor McGlindon, commander of the Royal Canadian Mounted Coast Guard (RCMCG), said that satellite photos had revealed a “substantial flotilla” in the making, as Wisconsinites prepared to flee their state for their neighbor to the North.

“Word has gotten around that we have policemen, firemen, and basic school lunches up here,” Mr. McGlindon said.  “You can’t blame these boat people for seeking a better life.  But we are under orders to intercept them.”

In Canada, officials fear that refugees from Wisconsin will brave the treacherous journey across Lake Superior in the hopes of giving birth to so-called “anchor babies” on Canadian soil.

Mr. McGlindon offered reporters a look at satellite photos showing the boat people larding their vessels with wheels of premium cheddar cheese, possibly in the hopes of bribing Canadian officials on Superior’s northern shore.

“We are telling all of our men that under no circumstances should they accept offerings of cheese,” he said.  ”These boat people are desperate and they will try anything.”

Reports of the looming refugee crisis coincided with the release of a new poll showing that Gov. Scott Walker is now the most hated man in Wisconsin, narrowly edging Brett Favre.

Speaking at the state capitol, Gov. Walker seemed philosophical about his legacy: “I’m not worried how history will remember me, because if I have my way there won’t be any history teachers.” 

 Canada Bracing for Massive Influx of Wisconsin Boat People « Borowitz Report.

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No Recall – NYTimes.com


Campaign Stops - Strong Opinions on the 2012 Election

June 6, 2012, 1:16 AM

No Recall

By ROSS DOUTHAT

For disappointed Democrats, seduced by early exit polls into a vain hope that the union-busting Wisconsin governor Scott Walker might actually be recalled from office late last night, the good news is that some of their pre-election spin still holds up. Yesterday’s recall vote is not necessarily a bellwether for the general election, not necessarily a sign that Mitt Romney can win a slew of purple states, not necessarily proof that the country is ready to throw in with Walker’s fellow Wisconsinite Paul Ryan on issues of spending and taxation.

But neither is it anything like good news for liberalism. We are entering a political era that will feature many contests like the war over collective bargaining in Wisconsin: grinding struggles in which sweeping legislation is passed by party-line votes and then the politicians responsible hunker down and try to survive the backlash. There will be no total victory in this era, but there will be gains and losses — and the outcome in the Walker recall is a warning to Democrats that their position may be weaker than many optimistic liberals thought.

To understand the broader trends at work, a useful place to turn is Jay Cost’s essay on “The Politics of Loss” in the latest issue of National Affairs. For most of the post-World War II era, Cost argues, our debates over taxing and spending have taken place in an atmosphere of surplus. The operative question has been how best to divide a growing pie, which has enabled politicians in both parties to practice a kind of ideologically flexible profligacy. Republicans from Dwight Eisenhower to George W. Bush have increased spending, Democrats from John F. Kennedy to Bill Clinton have found ways to cut taxes, and the great American growth machine has largely kept the toughest choices off the table.

But not anymore. Between our slowing growth and our unsustainable spending commitments, “the days when lawmakers could give to some Americans without shortchanging others are over; the politics of deciding who loses what, and when and how, is upon us.” In this era, debates will be increasingly zero-sum, bipartisan compromise will be increasingly difficult, and “the rules and norms of our politics that several generations have taken for granted” will fade away into irrelevance.

It’s useful to think of Obama’s stimulus bill and Walker’s budget repair bill as mirror image exercises in legislative shock and awe.

This is a perfect encapsulation of what’s happened in Wisconsin these last two years: Walker and the Republicans used a narrow mandate to enact unexpectedly dramatic public-sector reforms, and the Democrats responded by upping the ante significantly, with mass protests, walkouts by state legislators and finally a recall campaign. A similar story could be told about Barack Obama’s Washington, in which a temporarily ascendant Democratic Party pushed through sweeping spending bills and social-compact altering health care legislation before unprecedented Republican obstructionism ground the process to a halt. In fact, it’s useful to think of Obama’s stimulus bill and Walker’s budget repair bill as mirror image exercises in legislative shock and awe, and the Tea Party and the Wisconsin labor protests as mirror images of backlash.

At both the state and national level, then, the two coalitions are aiming for a mix of daring on offense, fortitude on defense and ruthless counterattacks whenever possible. The goal is to simultaneously maximize the opportunities presented to one’s own side and punish the other party for trying to do the same.

That’s obviously what the organizers of the recall hoped to do to Walker – to punish his union busting and spending cuts as thoroughly as House Democrats were punished in the 2010 mid-term elections for the votes they cast on the health care bill and the stimulus. The fact that the labor unions and liberal activists failed where the Tea Party largely succeeded sends a very different message, though: It tells officeholders that it’s safer to take on left-wing interest groups than conservative ones (the right outraised and outspent the left by a huge margin in the recall election), safer to cut government than to increase revenue, safer to face down irate public sector employees than irate taxpayers.

A similar message is currently being telegraphed by the respective postures of the two parties in Washington. The House Republicans have spent the past two years taking tough votes on entitlement reform, preparing themselves for an ambitious offensive should 2012 deliver the opportunity to cast those same votes and have them count. The Senate Democrats, on the other hand, have failed to even pass a budget: There is no Democratic equivalent of Paul Ryan’s fiscal blueprint, no Democratic plan to swallow hard and raise middle class taxes the way Republicans look poised to swallow hard and overhaul Medicare. Indeed, there’s no liberal agenda to speak of at the moment, beyond a resounding “No!” to whatever conservatism intends to do.

That “No!” might still be enough to win Barack Obama re-election. But November 2012 will just be one battle in a longer war, and the outcome in Wisconsin suggests that the edge in that war currently (and to some extent unexpectedly, given the demographic trends that favor the left) belongs to a limited government conservatism. The Democrats threw almost everything they had at Scott Walker, and it wasn’t nearly enough. And when you fail in what is essentially a defensive campaign, it makes it that much more difficult to get back on offense.

 No Recall – NYTimes.com.

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No Recall – NYTimes.com


Campaign Stops - Strong Opinions on the 2012 Election

June 6, 2012, 1:16 AM

No Recall

By ROSS DOUTHAT

 

For disappointed Democrats, seduced by early exit polls into a vain hope that the union-busting Wisconsin governor Scott Walker might actually be recalled from office late last night, the good news is that some of their pre-election spin still holds up. Yesterday’s recall vote is not necessarily a bellwether for the general election, not necessarily a sign that Mitt Romney can win a slew of purple states, not necessarily proof that the country is ready to throw in with Walker’s fellow Wisconsinite Paul Ryan on issues of spending and taxation.

But neither is it anything like good news for liberalism. We are entering a political era that will feature many contests like the war over collective bargaining in Wisconsin: grinding struggles in which sweeping legislation is passed by party-line votes and then the politicians responsible hunker down and try to survive the backlash. There will be no total victory in this era, but there will be gains and losses — and the outcome in the Walker recall is a warning to Democrats that their position may be weaker than many optimistic liberals thought.

To understand the broader trends at work, a useful place to turn is Jay Cost’s essay on “The Politics of Loss” in the latest issue of National Affairs. For most of the post-World War II era, Cost argues, our debates over taxing and spending have taken place in an atmosphere of surplus. The operative question has been how best to divide a growing pie, which has enabled politicians in both parties to practice a kind of ideologically flexible profligacy. Republicans from Dwight Eisenhower to George W. Bush have increased spending, Democrats from John F. Kennedy to Bill Clinton have found ways to cut taxes, and the great American growth machine has largely kept the toughest choices off the table.

But not anymore. Between our slowing growth and our unsustainable spending commitments, “the days when lawmakers could give to some Americans without shortchanging others are over; the politics of deciding who loses what, and when and how, is upon us.” In this era, debates will be increasingly zero-sum, bipartisan compromise will be increasingly difficult, and “the rules and norms of our politics that several generations have taken for granted” will fade away into irrelevance.

It’s useful to think of Obama’s stimulus bill and Walker’s budget repair bill as mirror image exercises in legislative shock and awe.

This is a perfect encapsulation of what’s happened in Wisconsin these last two years: Walker and the Republicans used a narrow mandate to enact unexpectedly dramatic public-sector reforms, and the Democrats responded by upping the ante significantly, with mass protests, walkouts by state legislators and finally a recall campaign. A similar story could be told about Barack Obama’s Washington, in which a temporarily ascendant Democratic Party pushed through sweeping spending bills and social-compact altering health care legislation before unprecedented Republican obstructionism ground the process to a halt. In fact, it’s useful to think of Obama’s stimulus bill and Walker’s budget repair bill as mirror image exercises in legislative shock and awe, and the Tea Party and the Wisconsin labor protests as mirror images of backlash.

At both the state and national level, then, the two coalitions are aiming for a mix of daring on offense, fortitude on defense and ruthless counterattacks whenever possible. The goal is to simultaneously maximize the opportunities presented to one’s own side and punish the other party for trying to do the same.

That’s obviously what the organizers of the recall hoped to do to Walker – to punish his union busting and spending cuts as thoroughly as House Democrats were punished in the 2010 mid-term elections for the votes they cast on the health care bill and the stimulus. The fact that the labor unions and liberal activists failed where the Tea Party largely succeeded sends a very different message, though: It tells officeholders that it’s safer to take on left-wing interest groups than conservative ones (the right outraised and outspent the left by a huge margin in the recall election), safer to cut government than to increase revenue, safer to face down irate public sector employees than irate taxpayers.

A similar message is currently being telegraphed by the respective postures of the two parties in Washington. The House Republicans have spent the past two years taking tough votes on entitlement reform, preparing themselves for an ambitious offensive should 2012 deliver the opportunity to cast those same votes and have them count. The Senate Democrats, on the other hand, have failed to even pass a budget: There is no Democratic equivalent of Paul Ryan’s fiscal blueprint, no Democratic plan to swallow hard and raise middle class taxes the way Republicans look poised to swallow hard and overhaul Medicare. Indeed, there’s no liberal agenda to speak of at the moment, beyond a resounding “No!” to whatever conservatism intends to do.

That “No!” might still be enough to win Barack Obama re-election. But November 2012 will just be one battle in a longer war, and the outcome in Wisconsin suggests that the edge in that war currently (and to some extent unexpectedly, given the demographic trends that favor the left) belongs to a limited government conservatism. The Democrats threw almost everything they had at Scott Walker, and it wasn’t nearly enough. And when you fail in what is essentially a defensive campaign, it makes it that much more difficult to get back on offense.

 No Recall – NYTimes.com.

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