The magnificent turmoil now gripping statehouses in Wisconsin, Ohio, Indiana and others marks an epic political moment. The nation faces a fiscal crisis of historic proportions and, remarkably, our muddled, gridlocked, allegedly broken politics has yielded a singular clarity.
At the federal level, President Obama’s budget makes clear that Democrats are determined to do nothing about the debt crisis, while House Republicans have announced that beyond their proposed cuts in discretionary spending, their April budget will actually propose real entitlement reform. Simultaneously, in Wisconsin and other states, Republican governors are taking on unsustainable, fiscally ruinous pension and health-care obligations, while Democrats are full-throated in support of the public-employee unions’ crying, “Hell no.”
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A choice, not an echo: Democrats desperately defending the status quo; Republicans charging the barricades.
Wisconsin is the epicenter. It began with economic issues. When Gov. Scott Walker proposed that state workers contribute more to their pension and health-care benefits, he started a revolution. Teachers called in sick. Schools closed. Demonstrators massed at the capitol. Democratic senators fled the state to paralyze the legislature.
Unfortunately for them, that telegenic faux-Cairo scene drew national attention to the dispute — and to the sweetheart deals the public-sector unions had negotiated for themselves for years. They were contributing a fifth of a penny on a dollar of wages to their pensions and one-fourth what private-sector workers pay for health insurance.
The unions quickly understood that the more than 85 percent of Wisconsin not part of this privileged special-interest group would not take kindly to “public servants” resisting adjustments that still leave them paying less for benefits than private-sector workers. They immediately capitulated and claimed they were only protesting the other part of the bill, the part about collective-bargaining rights.
Indeed. Walker understands that a one-time giveback means little. The state’s financial straits — a $3.6 billion budget shortfall over the next two years — did not come out of nowhere. They came largely from a half-century power imbalance between the unions and the politicians with whom they collectively bargain.
In the private sector, the capitalist knows that when he negotiates with the union, if he gives away the store, he loses his shirt. In the public sector, the politicians who approve any deal have none of their own money at stake. On the contrary, the more favorably they dispose of union demands, the more likely they are to be the beneficiary of union largesse in the next election. It’s the perfect cozy setup.
To redress these perverse incentives that benefit both negotiating parties at the expense of the taxpayer, Walker’s bill would restrict future government-union negotiations to wages only. Excluded from negotiations would be benefits, the more easily hidden sweeteners that come due long after the politicians who negotiated them have left. The bill would also require that unions be recertified every year and that dues be voluntary.
Recognizing this threat to union power, the Democratic party is pouring money and fury into the fight. Private unions have shrunk to less than 7 percent of the working population. The Democrats’ strength lies in government workers, who now constitute a majority of union members and provide massive support to the party. For them, Wisconsin represents a dangerous contagion.
Dr. Krauthammer: You say: "Here stand the Democrats, avatars of reactionary liberalism ... " I would not call the Democrats, liberals, except in one sense: They are liberal with other people's money. In most other regards, they are illiberal.
Amazing clarity of thought Dr K. "Recklessly principled": what a great, way to describe these emerging leaders. Walker, Christi, Ryan, et al, deserve our steadfast support. Don't blink.
As P.J. O'Rourke observed: "At the core of liberalism is the spoiled child - miserable, as all spoiled children are, unsatisfied, demanding, ill disciplined, despotic, and useless. Liberalism is the philosophy of sniveling brats."
Charles, you hit this one out of the park (that's a nod to your fondness for your hometeam, the Nationals).
Restriction of collective bargaining privileges prevents future 1990s, when misguided/craven/dimwitted/well intentioned (knowing where that road leads)/eager-to-be-re-elected politicians agreed to a defined benefit plan that assumes plan assets, if they even exist, will earn an average return of 8%. Before the MikeBs of the world cry "Whence the American Dream?!?" (sorry to use you as an archetype Mike), be sure you know the difference between defined benefit and defined contribution. That's where the real current problem lies and where the future catastrophy hides. The "American Dream" doesn't include retirement before 60 with a comfortable pension that you didn't contribute anything to. At least not in my book, and I'm as American as anyone else.
The demonstrations look like those in the mid east...but with the help of the MSM it looks worse than it is. What the news dosen't tell is the dwindling percentage of union workers. They will not win this one..Obama is exposing himself daily, what was speculation a yr. ago is now crystal clear. When they get desperate the blood will flow. We all can see that comming.
Everything Krauthammer says is true. But all of this is preaching to the choir. The only people likely to read this are conservatives or people who have enough common sense to see the truth or the leftist-socialist-progressives who are certainly not about to disseminate this to the majority of people who don't bother to read such things or to the average ignorant leftist dope who is too lazy to read for himself. The point is that, without the main stream media explaining what Dr. Krauthammer so eloquently says, it's not clear that 85% of the Wisconsin taxpayers mentioned will carry the day.
Dr. Krauthammer has done a service by writing this article. I thank you, sir. As one of the hated "boomers," I've spent most of my adult (voting) life wondering what the difference was between the parties in the real world. Oh, I realized the philosophical differences on which the parties were founded--their platforms. But, at last, there is a real difference that people can see. It's one of those rare times of choosing in America's history.
"Led by famously progressive Wisconsin — Scott Walker at the state level and Budget Committee chairman Paul Ryan at the congressional level — a new generation of Republicans has looked at the debt and is crossing the Rubicon. Recklessly principled, they are putting the question to the nation: Are we a serious people?"
Yes, they are cutting 60 billion from a 3.6 trillion budget. Impressive awakening! And they are led by the "principled" guy who voted for TARP, Medicare D and many similar stuff in the past. And now he underwent a transformation overnight, and we should be impressed by that? Give me a break.
All the Republicans have to do is separate out the changes relating to public employee unions and pass them. These are not budgetary items so don't require the presence of the Dems.
Djovanelo, "the journey of a thousand miles begins with a single step". Of course the House GOP won't be able to get everything cut that we'd like, but to bash them gratuitously for that doesn't serve any purpose. We have a clear choice between two parties; one arguing about how much and how fast to cut, and one arguing about how much and how fast to grow government. So please, give the rest of us a break.
It is funny to see bureaucrats pose as workers. I just finished a training program at my private sector employer concerning the further implementation of the “Toyota” production system in our or own factory. We are more efficient today than ever before but at the cost of 500 manufacturing jobs lost since 2001.
No non unionized business in the United States has been able to ignore these methodologies in lean manufacturing and process improvement and still remained viable in the global marketplace.
Our workers, machinists, test technicians, and engineers all know what it is like to go years without raises, pay increased costs for health insurance and have seen a general contraction in our retirement benefits but are still happy to still be employed.
We are the people who must pay an ever increasing tax on our property and incomes to keep a failing 19th century model in education afloat. To add insult to this injury almost all of us who can afford it have our own children in parochial school.
I do not feel any sympathy for the teachers in Wisconsin. If our business had performed as poorly over the last 50 years as the public education racket has I would be digging ditches for a living.
The real action is actually in the Senate, where Sen Lugar (R) IN began negociating down the puny $100 billion original request to almost half. Of course, that was too much for both Reid and Pelosi. So now a $60 billion reduction is called drastic. The President's personal bank Goldman Sachs released this week a new "study" in which it found that $60 billion in cuts would lead to a double dip recession! Wow, a reduction of 1.6% of federal outlays would topple a $13 trillion economy!
The sad fact is, even if the House proposed a $100,000 reduction in spending (the cost of coffee service for the Department of Funny Walks), Reid, Pelosi, Trumka, and Lugar would cry foul. And yes, a double dip recession is coming. But it won't be because of a 2 penny/dollar reduction in federal spending.
On the mark Charles! I am always amused by the spontaneous demonstrators carrying the same pre-printed signs.....
Perhaps the dawn of the decline of the public sector union is at hand....one can only hope..
I am disappointed that after all the intemperance and chaos in Madison, half of Wisconsin voters (according to polls) support the union position and only half support Governor Walker's position, when it comes to the core issue(s).
Nationwide, the numbers are better. But it does show the power of the leftist media, all incessantly bleating the same message, while covering up important facts.
Wow, Charles asked the right question. Are we a serious people?
I don't know the answer to this, but I do know that Barack Obama is not a serious President. His own debt commission sent him a very serious report and the man does nothing. His own Joint Chief and Secretary of State said that the debt is the most important issue to national security. And what does Obama do? NOTHING but side with unions, the same people that fill his political coffers. 2012 can't come fast enough.
How ironic, and fitting, that the birthplace of unionized public sector worker's will toll the death knell for the Democratic money machine. Gives me goose bumps.
Bravo! Clearly stated and without ambiguity. Crossing over Big Muddy. The national debt is the national frontier. We need to pioneer a way through this if we are to survive as a nation.
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