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Madison Madness
The unions are in an uproar in Wisconsin, but taxpayers just won’t stand for it anymore.

By Larry Kudlow


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The Democratic/government-union days of rage in Madison, Wis., are a disgrace. Wisconsin congressman Paul Ryan calls it Cairo coming to Madison. But the protesters in Egypt were pro-democracy. The government-union protesters in Madison are anti-democracy; they are trying to prevent a vote in the legislature. In fact, Democratic legislators themselves are fleeing the state so as not to vote on Gov. Scott Walker’s budget cuts.

That’s not democracy.

The teachers’ union is going on strike in Milwaukee and elsewhere. They ought to be fired. Think Ronald Reagan PATCO in 1981. Think Calvin Coolidge police strike in 1919.

The teachers’ union on strike? Wisconsin parents should go on strike against the teachers’ union. A friend e-mailed me to say that the graduation rate in Milwaukee public schools is 46 percent. The graduation rate for African-Americans in Milwaukee public schools is 34 percent. Shouldn’t somebody be protesting that?

Governor Walker is facing a $3.6 billion budget deficit, and he wants state workers to pay one-half of their pension costs and 12.6 percent of their health benefits. Currently, most state employees pay nothing for their pensions and virtually nothing for their health insurance. That’s an outrage.

Nationwide, state and local government unions have a 45 percent total-compensation advantage over their private-sector counterpart. With high-pay compensation and virtually no benefits co-pay, the politically arrogant unions are bankrupting America — which by some estimates is suffering from $3 trillion in unfunded liabilities.

Exempting police, fire, and state troopers, Governor Walker would end collective bargaining over pensions and benefits for the rest. Collective bargaining for wages would still be permitted, but there would be no wage hikes above the CPI. Unions could still represent workers, but they could not force employees to pay dues. In exchange for this, Walker promises no furloughs for layoffs.

Indiana Gov. Mitch Daniels is also pushing a bill to limit the collective-bargaining rights of teachers for wages and wage-related benefits. Similar proposals are being discussed in Idaho and Tennessee. In Ohio, Gov. John Kasich wants to restrict union rights across-the-board for all state and local government workers. More generally, both Democratic and Republican governors across the country are taking on the extravagant pay of government unions.

Why? Because taxpayers won’t stand for it anymore.

In an interesting twist on this story, even private unions are revolting against government unions. Private unions pay taxes, too. And they don’t have near the total compensation of the public unions. It’s no wonder they’re fed up.

So, having lost badly in the last election, the government-union Democrats in Wisconsin have taken to the streets. This is a European-style revolt, like those seen in Greece, France, and elsewhere. So it becomes greater than just a fiscal issue. It is becoming a law-and-order issue.

President Obama, who keeps telling us he’s a budget cutter, has taken the side of the public unions. John Boehner correctly rapped Obama’s knuckles for this. If the state of Wisconsin voters elected a Chris Christie-type governor with a Republican legislature, then it is a local states’ rights issue.

But does President Obama even know that the scope of collective bargaining for federal employees is sharply limited? According to the Manhattan Institute, federal workers are forbidden to collectively bargain for wages or benefits. Instead, pay increases are determined annually through legislation.

Meanwhile, Gov. Scott Walker said it would be “wise” for President Obama to keep his attentions on Washington, not Wisconsin. “We’re focused on balancing our budget,” he said in a television interview. “It would be wise for the president and others in Washington to be focused on balancing their budget, which they’re a long ways from doing.”

Amen.

Obama should stay out. And Governor Walker should stand tall and stick to his principles. A nationwide taxpayer revolt against public unions can save the country. Otherwise, the spiraling out-of-control costs of state public-union entitlements will destroy the local fisc, just as surely as the unreformed federal entitlements of Social Security and health care are wrecking our national finances.

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COMMENTS   29

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   02/18/11 15:51

I`ve been telling my husband for years that unions were the down fall of this country and this seems to be proving me right!

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Bruce B.
   02/18/11 16:40

Here's a deal. All public employees pay into a fund to provide pensions for the rest of us who don't have them but pay for theirs. Let the unions contribute matching funds.

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   02/18/11 16:51

Stand strong Governor!

Your winning this one!

One of my Wisconsin friends who is a self described Democrat (I do have friends who are Democrats) surprised me by criticizing the teachers on his facebook status!

So its likely there is at least some support for Governor Walker from rank and file Democrats. At least those that pay some taxes at least (he is a homeowner and Wisconsin property taxes are very high).

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   02/18/11 17:16

I'm a turd state government employee in the right to work state of Arizona. We pay roughly 20percent of our health insurance cost. Over the years (11 now), one of my pet peeves has been the amount of money the state pays for my/our insurance. I'm not saying I want to lose it, but the insurance is a one-size fits all, bid out service, which ultimately shrinks choices (we usually pick from 4 to 6 providers, depending on who is awarded contracts). If the insurance market were competitive and people could buy across states lines, yada, yada, yada we all might save a bit of money.

We recently finished off 2010 having worked with a reduction in pay; part mandatory furlough days, part lose of "performance pay." Perf. pay amounted to roughly $36 extra after taxes per two week pay period.

The state does matching retirement, which for the life of me I cannot remember that percentage rate (I could be way off, but I believe it's about 8%, just asked someone and they thought it is now up to 9.7, but what to they know, they're gov employees).

I wouldn't describe my pay as ideal, but we're difficult to fire, hence my day is spent commenting at length on various subjects (in essence giving myself a raise). I jest, but I'm a wee bit upset about Wisconsin AND the President sticking his nose in and playing those community organizer-like games. I'm completely freaked out by his stance (pretty much all of them, but this one on top of his recent "budget" is alarming).

Bottom line is that I've found that it is possible to survive without the rape of "we the people" by public unions. Life hasn't been perfect, money hasn't been flowing in etc. Just as it hasn't for the rest of the majority of my fellow citizens.

The Governor's proposal is a step in the right direction and more should follow his and that former Fox fella over in Ohio. It's also not asking for that much and sounds pretty fair minded. How would they react with my state's set up?

PS: a very good friend of my is of the Leftist persuasion (we agree on very little politically, so the subject doesn't come up much. I often keep my mouth shut if it does, because it can't be argued with if it doesn't make sense). Even he believes a state government should not be beholden to a union as so many of them are.

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   02/18/11 17:19

If the bill passes, I think Walker suddenly becomes a big player in national politics.

But I do want Obama to get involved -- he should stick all his weight behind the unions, and make daily speeches calling for Scott Walker to "step down in the name of democracy" (haha).

He would be honestly showing his true colors (Madison is "community organizing" at its finest) and also it will blow up in his face (THERE IS NO MORE MONEY -- everyone knows this but the Dems are trying to pretend otherwise. If Obama throws his weight behind the protesters, it undermines his other policy BS in so many delicious ways . . . )

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   02/18/11 17:21

Just a few thoughts from a conservative blogger in WI:

Random Thoughts Regarding Protesting Teachers:
External Link 

Walker's "Air Traffic Controller" Moment:
External Link 

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   02/18/11 17:21

I failed to mention something I found somewhat ironic during the health- insura-reform-care "debate." I had/have insurance, but often didn't have the money for the co-pay due to tight finances. Having the insurance doesn't solve all the problems.

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   02/18/11 19:10

Larry you are a great columnist. But, (you knew that was coming) In this case you should really investigate a bit more. The devil is in the details and Walker screwed up big time. We will all be darn lucky if the fall out doesn't re-elect Obama.

Worst of all it was totally unnecessary to try to rush it through like Obamacare.

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   02/18/11 23:52

If you made a list of the 5 most important Americans, James Madison, the author of the first draft of the constitution, would have to be in there. How appropriate that the future of America will be decided in Madison. God help us if the unions win.

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Chris Riley
   02/19/11 07:47

I was pleased to see you mention the fact that this may lead to a split between government unions and the private unions.

There are two fundamentally different and inherently incompatible factions among unionized workers.
There is a LABOR movement that is comprised of largely of blue collar workers that has sought to level the playing field in negotiations with private owners of capital, who may have bargaining advantages that stem from better information, deeper pockets and industrial concentration. These unions are in an adversarial position with the management of the capital, who serve at the pleasure of the owners of that capital. LABOR unions concentrate on maximizing the pay of their workers, for given amount of labor.

All of the recent growth in unions has come from the faction that I refer to as the LEISURE movement. These unions, such as the SEIU,NEA, AFSCME (the Union that works for you) work by colluding with, rather than bargaining against management, which in this case are elected politicians. The power of a LEISURE union Comes not from the threat of a strike, but from the ability of a LEISURE union to deliver political victory (or defeat) at the polls to the politicians they are colluding with. Because of this it is essential for the LEISURE leader to maximize the number of public employees along with the number of public pension recipients. They therefore, push to minimize the work done for a given amount of pay in contrast to LABOR unions which try to maximize pay for a given amount of work. This is seen in the constant demands for smaller class size, earlier and earlier retirement, etc etc . They also benefit in two ways from government subsidies for idleness, (which is itself a leisure-intense activity). First the more people on the dole, the more government workers are needed to administer the dole, and secondly the recipients of the dole do not vote like taxpayers do, in fact they automatically vote exactly the way LEISURE leaders would want them to.

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   02/19/11 10:07

I'm wondering how the teacher's union will sell the "Walker is Hitler" meme long term. After all, these are the intellectual giants that are entrusted with teaching, among other things, history to the rising generation. It's only right that such an insight should be incorporated into the curriculum.

I can just see how classes on the history of the 1930s and 1940s will in the future be conducted in Wisconsin:

"The first step was remilitarizing the Rhineland. Then Austria was annexed. But the full scope of aggression wasn't clear until civil servants were forced to pay 12.6 percent of their health insurance premiums. Even then the Western democracies didn't intervene. And then, when the civil servants were required to pay into the retirement fund it was only a short step to the death camps."

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Have you considered
   02/19/11 11:53

The teachers seem to saying to the taxpayers; "you must pay so that we don't have to." It is that simple.

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   02/19/11 12:50

(Posted elsewhere on this site)
I am a union member serving in the private sector and am very ashamed at the conduct of those members on the public sector side in regards to their behavior and apparent greed in their disregard of of the citizens of Wisconsin. I for one do not believe that Public sector employees should be unionized, primarily because it is anathema to our Republican/Democratic form of government. In my union(Private sector), if we have a contract with a company that is even remotely connected with a government contract, we are under a "No strike or Lockout" clause.

In regards to the teacher's union, they get paid very well, and the children well educated and prepared to become wards of the state and welfare dependents and receive furthering education on how to work the system.

AFL-CIO President Trumka has worked far too long down in the coal mines, I therefore believe he has brain damage from lack of oxygen, the organization and all union members in this country should be considering themselves as Americans first and union members second in the present fiscal crisis we are in.

The representatives are beholden to the people and the people are the power of the state, not the unions. When taxes are raised because of union activities due to wanting more and more benefits, the people are deprived of their right to "no taxation without representation" Perhaps the American People should unionize and organize themselves against their government employees.....oooooops we already have one.....TEA PARTY!

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   02/19/11 15:17

If the public unions want to go out on strike, we should be so lucky. Let them go, there are a lot of unemployed citizens that would be glad to take their place - without unions. Remember PATCO? If they go out on strike, it is a one-way door, no return. Remember, FDR warned against allowing public employees to form unions because of the built in, unavoidable corruption we are now seeing.

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   02/19/11 16:09

Larry, please explain how Social Security and Medicare are, "wrecking our national finances." I think the truth is that everything else is wrecking our national finances - things like two unfunded wars, a vast host of social welfare programs, boondogles of every sort*, "green" programs that are proven failures elsewhere and on and on and on.
* For instance; in my county, there is a town hundreds of miles from any real population center (Reno or Las Vegas). the town has a population of 350 people. The feds have spent millions on the town's airport although,when queried, the requesting county officials didn't know if there are or ever have been any airplanes using the airport - (they also didn't care). That's what's wrecking our national finances!

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Walter G
   02/19/11 17:13

Chris Riley

Very interesting analysis. Never thought of it just like that. The LEISURE movement colluding with the managers of capital. Makes you want to go "Hmmm"

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Christine L
   02/19/11 18:32

It is my understanding that school teachers are not made to pay SSI. That alone makes their wage 6 1/2 percent higher than their stated wage.

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Wake up america
   02/20/11 02:01

Obama plays the American people like a fiddle. If our teachers arent smart enough to know that the union heads are using them to promote their agenda then how can we expect our kids to learn anything from teachers that aren't smart enough to know that they are being used. Obama is behind all this and you would have to be brain died not to figure it out. He sends his minions out and plays the saint. Watch what he does not what he says!

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   02/20/11 11:03

Other than political reasons, I find it odd that police/fire/troopers will still be allowed collective bargaining. Why should they and not other public employees?

Don't get me wrong - I believe none of them should have collective bargaining. Having the police unionized is akin to having the Army unionized.

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   02/20/11 12:27

I am a teacher.
I am also in a union.
Teaching is a second career for me and I took a considerable cut in pay when I chose this job. I also had to sign a paper relinquishing my claim to social security benefits as I would now be part of the (underfunded) state retirement system.
Joining the union was a political move to ensure favorable treatment (i.e., a reasonable schedule, having all my classes on one floor, etc.).
I fully support Gov. Walker and what he is attempting to accomplish. As a teacher and having served two terms on my local school board, it is more than evident to me that the NEA, AFT, and state and local unions exist only to create jobs for themselves. More than once I witnessed contract negotiations that were going smoothly get all fouled up when the union decided that the deal wasn't good enough. It is my most fervant wish that out governor, Paul ("Kiss my butt") LePage consider the same type of reform here.

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