CA Unions & Others Demonstrate In Support Of WI Protestors @ Capital | |
| By: marymccurnin Saturday February 26, 2011 | |
2/26/11
via: The Economic Populist
Corporate Profits Soaring Thanks to Record Unemployment
Submitted by Mark Provost
In a January 2009 ABC interview with George Stephanopoulos, then President-elect Barack Obama said fixing the economy required shared sacrifice, "Everybody’s going to have to give. Everybody’s going to have to have some skin in the game." (1)
For the past two years, American workers submitted to the President’s appeal—taking steep pay cuts despite hectic productivity growth. By contrast, corporate executives have extracted record profits by sabotaging the recovery on every front—eliminating employees, repressing wages, withholding investment, and shirking federal taxes.
The global recession increased unemployment in every country, but the American experience is unparalleled. According to a July OECD report, the U.S. accounted for half of all job losses among the 31 richest countries from 2007 to mid-2010. (2) The rise of U.S. unemployment greatly exceeded the fall in economic output. Aside from Canada, U.S. GDP actually declined less than any other rich country, from mid-2008 to mid 2010. (3)
Washington’s embrace of labor market flexibility ensured companies encountered little resistance when they launched their brutal recovery plans. Leading into the recession, the US had the weakest worker protections against individual and collective dismissals in the world, according to a 2008 OECD study. (4) Blackrock’s Robert Doll explains, “When the markets faltered in 2008 and revenue growth stalled, U.S. companies moved decisively to cut costs—unlike their European and Japanese counterparts.” (5) The U.S. now has the highest unemployment rate among the ten major developed countries. (6).
The private sector has not only been the chief source of massive dislocation in the labor market, but it is also a beneficiary. Over the past two years, productivity has soared while unit labor costs have plummeted. By imposing layoffs and wage concessions, U.S. companies are supplying their own demand for a tractable labor market. Private sector union membership is the lowest on record. (7) Deutsche Bank Chief Economist Joseph LaVorgna notes that profits-per-employee are the highest on record, adding, “I think what investors are missing - and even the Federal Reserve - is the phenomenal health of the corporate sector.” (8)
Due to falling tax revenues, state and local government layoffs are accelerating. By contrast, U.S. companies increased their headcount in November at the fastest pace in three years, marking the tenth consecutive month of private sector job creation. The headline numbers conceal a dismal reality; after a lost decade of employment growth, the private sector cannot keep pace with new entrants into the workforce.
The few new jobs are unlikely to satisfy Americans who lost careers. In November, temporary labor represented an astonishing 80% of private sector job growth. Companies are transforming temporary labor into a permanent feature of the American workforce. UPI reports, “This year, 26.2 percent of new private sector jobs are temporary, compared to 10.9 percent in the recovery after the 1990s recession and 7.1 percent in previous recoveries.” (9) The remainder of 2010 private sector job growth has consisted mainly of low-wage, scant-benefit service sector jobs, especially bars and restaurants, which added 143,000 jobs, growing at four times the rate of the rest of the economy. (10)
Aside from job fairs, large corporations have been conspicuously absent from the tepid jobs recovery. But they are leading the profit recovery. Part of the reason is the expansion of overseas sales, but the profit recovery is primarily coming off the backs of American workers. After decades of globalization, U.S. multinationals still employ two-thirds of their global workforce from the U.S. (21.1 million out of 31.2 million). (11) Corporate executives are hammering American workers precisely because they are so dependent on them.
An annual study by USA Today found that private sector paychecks as a share of Americans’ total income fell to 41.9 percent earlier this year, a record low. (12) Conservative analysts seized on the report as proof of President Obama’s agenda to redistribute wealth from, in their words, those ‘pulling the cart’ to those ‘simply riding in it’. Their accusation withstands the evidence—only it’s corporate executives and wealthy investors enjoying the free ride. Corporate executives have found a simple formula: the less they contribute to the economy, the more they keep for themselves and shareholders. The Fed’s Flow of Funds reveals corporate profits represented a near record 11.2% of national income in the second quarter. (13)
Non-financial companies have amassed nearly two-trillion in cash, representing 11% of total assets, a sixty year high. Companies have not deployed the cash on hiring as weak demand and excess capacity plague most industries. Companies have found better use for the cash, as Robert Doll explains, “high cash levels are already generating dividend increases, share buybacks, capital investments and M&A activity—all extremely shareholder friendly.” (5)
Companies invested roughly $262 billion in equipment and software investment in the third quarter. (14) That compares with nearly $80 billion in share buybacks. (15) The paradox of substantial liquid assets accompanying a shortfall in investment validates Keynes’ idea that slumps are caused by excess savings. Three decades of lopsided expansions has hampered demand by clotting the circulation of national income in corporate balance sheets. An article in the July issue of The Economist observes: “business investment is as low as it has ever been as a share of GDP.” (16)
The decades-long shift in the tax burden from corporations to working Americans has accelerated under President Obama. For the past two years, executives have reported record profits to their shareholders partially because they are paying a pittance in federal taxes. Corporate taxes as a percentage of GDP in 2009 and 2010 are the lowest on record, just above 1%. (17)
Corporate executives complain that the U.S. has the highest corporate tax rate in the world, but there’s a considerable difference between the statutory 35% rate and what companies actually pay (the effective rate). Here again, large corporations lead the charge in tax arbitrage. U.S. tax law allows multinationals to indefinitely defer their tax obligations on foreign earned profits until they ‘repatriate’ (send back) the profits to the U.S. U.S. corporations have increased their overseas stash by 70% in four years, now over $1 trillion—largely by dodging U.S taxes through a practice known as “transfer pricing”. (18)Transfer pricing allows companies to allocate costs in countries with high tax rates and book profits in low-tax jurisdictions and tax havens—regardless of the origin of sale. U.S. companies are using transfer pricing to avoid U.S. tax obligations to the tune of $60 billion dollars annually, according to a study by Kimberly A. Clausing, an economics professor at Reed College in Portland, Oregon. (18)
The corporate cash glut has become a point of recurrent contention between the Obama administration and corporate executives. In mid December, a group of 20 corporate executives met with the Obama administration and pleaded for a tax holiday on the $1 trillion stashed overseas, claiming the money will spur jobs and investment. In 2004, corporate executives convinced President Bush and Congress to include a similar amnesty provision in the American Jobs Creation Act; 842 companies participated in the program, repatriating $312 billion back to the U.S. at 5.25% rather than 35%. (19) In 2009, the Congressional Research Service concluded that most of the money went to stock buybacks and dividends—in direct violation of the Act. (20)
The Obama administration and corporate executives saved American capitalism. The U.S. economy may never recover.
Sources:
1. ‘This Week’ ABC News with George Stephanopoulos, January 2009. http://abcnews.go.com/ThisWeek/Economy/story?id=6618199&page=2
2. OECD report, U.S. lost most jobs among rich countries. EMMA VANDORE AP Business Writer http://abcnews.go.com/Business/wireStory?id=11104432
3. Carnegie Endowment for International Peace. Policy Brief 89. November, 2010. Uri Dadush & Vera Eidelman. Five Surprises of the Great Recession. http://carnegieendowment.org/files/five_surprises.pdf
4. OECD Indicators of Employment Protection. http://www.oecd.org/document/11/0,3343,en_2649_37457_42695243_1_1_1_3745...
5. The Wall St. Journal. June 8, 2010. Robert Doll. Opinion. The Bullish Case for U.S. Equities. http://online.wsj.com/article/SB1000142405274870356160457528289379646147...
6. Bureau of Labor Statistics. International Labor Comparisons. Updated Dec. 2, 2010. http://www.bls.gov/ilc/intl_unemployment_rates_monthly.htm
7. Bloomberg Businessweek. January 22, 2010. Holly Rosenkrantz.Union membership in the private sector declines to record low: http://www.businessweek.com/news/2010-01-22/union-membership-in-the-priv...
8. Joseph Lavorgna quote: CNBC. When will profits translate into jobs? http://www.cnbc.com/id/40350345/When_Will_Record_Corporate_Profits_Trans...
9. UPI. Temp work becomes a fixture. Dec. 20th, 2010. http://www.upi.com/Business_News/2010/12/20/Temp-work-becomes-a-fixture/...
10. Restaurant industry’s hiring helping to revive economy. DAYTON, Nov 28, 2010 (Dayton Daily News - McClatchy-Tribune Information Services via COMTEX): http://www.techzone360.com//news/2010/11/28/5161348.htm
11. Tax Notes, Martin A. Sullivan. U.S. Multinationals Cut U.S. Jobs While Expanding Abroad. http://taxprof.typepad.com/files/128tn1102.pdf
12. USA Today. May 26, 2010. Private pay shrinks to historic lows as gov't payouts rise. http://www.usatoday.com/money/economy/income/2010-05-24-income-shifts-fr...
13. New York Times. Economix blog. Catherine Rampell. Nov. 23, 2010. Visualizing Booming Profits. http://economix.blogs.nytimes.com/2010/11/23/visualizing-booming-profits/
14. $262 billion in equipment and software investment, calculated from EconStats. http://www.econstats.com/nipa/nipa_5__3___5q.htm
15. ABC News. Dec. 20, 2010. Mark Jewell. S&P 500 Companies More Than Double Buybacks in 3Q. http://abcnews.go.com/Business/wireStory?id=12440445
16. The Economist. Companies’ cash piles: Show us the Money.http://www.economist.com/node/16485673
17. Corporate Income Tax as a share of GDP, 1946-2009. http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=263
18. Bloomberg. May 13, 2010. U.S. Companies Dodge $60 Billion in Taxes with Global Odyssey. http://www.bloomberg.com/news/2010-05-13/american-companies-dodge-60-bil...
19. Bloomberg. Jesse Drucker. Dec 29, 2010. Dodging Repatriation Tax Lets U.S. Companies Bring Home Cash http://www.bloomberg.com/news/2010-12-29/dodging-repatriation-tax-lets-u...
20. Center for Budget priorities. Robert Greenstein and Chye-Ching Huang. Feb. 2009. Proposed Tax Break For Multinationals Would Be Poor Stimulus
“Dividend Repatriation Tax Holiday” Failed in 2004, Unlikely to Work Now. http://www.cbpp.org/cms/index.cfm?fa=view&id=2270
For the past two years, American workers submitted to the President’s appeal—taking steep pay cuts despite hectic productivity growth. By contrast, corporate executives have extracted record profits by sabotaging the recovery on every front—eliminating employees, repressing wages, withholding investment, and shirking federal taxes.
The global recession increased unemployment in every country, but the American experience is unparalleled. According to a July OECD report, the U.S. accounted for half of all job losses among the 31 richest countries from 2007 to mid-2010. (2) The rise of U.S. unemployment greatly exceeded the fall in economic output. Aside from Canada, U.S. GDP actually declined less than any other rich country, from mid-2008 to mid 2010. (3)
Washington’s embrace of labor market flexibility ensured companies encountered little resistance when they launched their brutal recovery plans. Leading into the recession, the US had the weakest worker protections against individual and collective dismissals in the world, according to a 2008 OECD study. (4) Blackrock’s Robert Doll explains, “When the markets faltered in 2008 and revenue growth stalled, U.S. companies moved decisively to cut costs—unlike their European and Japanese counterparts.” (5) The U.S. now has the highest unemployment rate among the ten major developed countries. (6).
The private sector has not only been the chief source of massive dislocation in the labor market, but it is also a beneficiary. Over the past two years, productivity has soared while unit labor costs have plummeted. By imposing layoffs and wage concessions, U.S. companies are supplying their own demand for a tractable labor market. Private sector union membership is the lowest on record. (7) Deutsche Bank Chief Economist Joseph LaVorgna notes that profits-per-employee are the highest on record, adding, “I think what investors are missing - and even the Federal Reserve - is the phenomenal health of the corporate sector.” (8)
Due to falling tax revenues, state and local government layoffs are accelerating. By contrast, U.S. companies increased their headcount in November at the fastest pace in three years, marking the tenth consecutive month of private sector job creation. The headline numbers conceal a dismal reality; after a lost decade of employment growth, the private sector cannot keep pace with new entrants into the workforce.
The few new jobs are unlikely to satisfy Americans who lost careers. In November, temporary labor represented an astonishing 80% of private sector job growth. Companies are transforming temporary labor into a permanent feature of the American workforce. UPI reports, “This year, 26.2 percent of new private sector jobs are temporary, compared to 10.9 percent in the recovery after the 1990s recession and 7.1 percent in previous recoveries.” (9) The remainder of 2010 private sector job growth has consisted mainly of low-wage, scant-benefit service sector jobs, especially bars and restaurants, which added 143,000 jobs, growing at four times the rate of the rest of the economy. (10)
Aside from job fairs, large corporations have been conspicuously absent from the tepid jobs recovery. But they are leading the profit recovery. Part of the reason is the expansion of overseas sales, but the profit recovery is primarily coming off the backs of American workers. After decades of globalization, U.S. multinationals still employ two-thirds of their global workforce from the U.S. (21.1 million out of 31.2 million). (11) Corporate executives are hammering American workers precisely because they are so dependent on them.
An annual study by USA Today found that private sector paychecks as a share of Americans’ total income fell to 41.9 percent earlier this year, a record low. (12) Conservative analysts seized on the report as proof of President Obama’s agenda to redistribute wealth from, in their words, those ‘pulling the cart’ to those ‘simply riding in it’. Their accusation withstands the evidence—only it’s corporate executives and wealthy investors enjoying the free ride. Corporate executives have found a simple formula: the less they contribute to the economy, the more they keep for themselves and shareholders. The Fed’s Flow of Funds reveals corporate profits represented a near record 11.2% of national income in the second quarter. (13)
Non-financial companies have amassed nearly two-trillion in cash, representing 11% of total assets, a sixty year high. Companies have not deployed the cash on hiring as weak demand and excess capacity plague most industries. Companies have found better use for the cash, as Robert Doll explains, “high cash levels are already generating dividend increases, share buybacks, capital investments and M&A activity—all extremely shareholder friendly.” (5)
Companies invested roughly $262 billion in equipment and software investment in the third quarter. (14) That compares with nearly $80 billion in share buybacks. (15) The paradox of substantial liquid assets accompanying a shortfall in investment validates Keynes’ idea that slumps are caused by excess savings. Three decades of lopsided expansions has hampered demand by clotting the circulation of national income in corporate balance sheets. An article in the July issue of The Economist observes: “business investment is as low as it has ever been as a share of GDP.” (16)
The decades-long shift in the tax burden from corporations to working Americans has accelerated under President Obama. For the past two years, executives have reported record profits to their shareholders partially because they are paying a pittance in federal taxes. Corporate taxes as a percentage of GDP in 2009 and 2010 are the lowest on record, just above 1%. (17)
Corporate executives complain that the U.S. has the highest corporate tax rate in the world, but there’s a considerable difference between the statutory 35% rate and what companies actually pay (the effective rate). Here again, large corporations lead the charge in tax arbitrage. U.S. tax law allows multinationals to indefinitely defer their tax obligations on foreign earned profits until they ‘repatriate’ (send back) the profits to the U.S. U.S. corporations have increased their overseas stash by 70% in four years, now over $1 trillion—largely by dodging U.S taxes through a practice known as “transfer pricing”. (18)Transfer pricing allows companies to allocate costs in countries with high tax rates and book profits in low-tax jurisdictions and tax havens—regardless of the origin of sale. U.S. companies are using transfer pricing to avoid U.S. tax obligations to the tune of $60 billion dollars annually, according to a study by Kimberly A. Clausing, an economics professor at Reed College in Portland, Oregon. (18)
The corporate cash glut has become a point of recurrent contention between the Obama administration and corporate executives. In mid December, a group of 20 corporate executives met with the Obama administration and pleaded for a tax holiday on the $1 trillion stashed overseas, claiming the money will spur jobs and investment. In 2004, corporate executives convinced President Bush and Congress to include a similar amnesty provision in the American Jobs Creation Act; 842 companies participated in the program, repatriating $312 billion back to the U.S. at 5.25% rather than 35%. (19) In 2009, the Congressional Research Service concluded that most of the money went to stock buybacks and dividends—in direct violation of the Act. (20)
The Obama administration and corporate executives saved American capitalism. The U.S. economy may never recover.
Sources:
1. ‘This Week’ ABC News with George Stephanopoulos, January 2009. http://abcnews.go.com/ThisWeek/Economy/story?id=6618199&page=2
2. OECD report, U.S. lost most jobs among rich countries. EMMA VANDORE AP Business Writer http://abcnews.go.com/Business/wireStory?id=11104432
3. Carnegie Endowment for International Peace. Policy Brief 89. November, 2010. Uri Dadush & Vera Eidelman. Five Surprises of the Great Recession. http://carnegieendowment.org/files/five_surprises.pdf
4. OECD Indicators of Employment Protection. http://www.oecd.org/document/11/0,3343,en_2649_37457_42695243_1_1_1_3745...
5. The Wall St. Journal. June 8, 2010. Robert Doll. Opinion. The Bullish Case for U.S. Equities. http://online.wsj.com/article/SB1000142405274870356160457528289379646147...
6. Bureau of Labor Statistics. International Labor Comparisons. Updated Dec. 2, 2010. http://www.bls.gov/ilc/intl_unemployment_rates_monthly.htm
7. Bloomberg Businessweek. January 22, 2010. Holly Rosenkrantz.Union membership in the private sector declines to record low: http://www.businessweek.com/news/2010-01-22/union-membership-in-the-priv...
8. Joseph Lavorgna quote: CNBC. When will profits translate into jobs? http://www.cnbc.com/id/40350345/When_Will_Record_Corporate_Profits_Trans...
9. UPI. Temp work becomes a fixture. Dec. 20th, 2010. http://www.upi.com/Business_News/2010/12/20/Temp-work-becomes-a-fixture/...
10. Restaurant industry’s hiring helping to revive economy. DAYTON, Nov 28, 2010 (Dayton Daily News - McClatchy-Tribune Information Services via COMTEX): http://www.techzone360.com//news/2010/11/28/5161348.htm
11. Tax Notes, Martin A. Sullivan. U.S. Multinationals Cut U.S. Jobs While Expanding Abroad. http://taxprof.typepad.com/files/128tn1102.pdf
12. USA Today. May 26, 2010. Private pay shrinks to historic lows as gov't payouts rise. http://www.usatoday.com/money/economy/income/2010-05-24-income-shifts-fr...
13. New York Times. Economix blog. Catherine Rampell. Nov. 23, 2010. Visualizing Booming Profits. http://economix.blogs.nytimes.com/2010/11/23/visualizing-booming-profits/
14. $262 billion in equipment and software investment, calculated from EconStats. http://www.econstats.com/nipa/nipa_5__3___5q.htm
15. ABC News. Dec. 20, 2010. Mark Jewell. S&P 500 Companies More Than Double Buybacks in 3Q. http://abcnews.go.com/Business/wireStory?id=12440445
16. The Economist. Companies’ cash piles: Show us the Money.http://www.economist.com/node/16485673
17. Corporate Income Tax as a share of GDP, 1946-2009. http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=263
18. Bloomberg. May 13, 2010. U.S. Companies Dodge $60 Billion in Taxes with Global Odyssey. http://www.bloomberg.com/news/2010-05-13/american-companies-dodge-60-bil...
19. Bloomberg. Jesse Drucker. Dec 29, 2010. Dodging Repatriation Tax Lets U.S. Companies Bring Home Cash http://www.bloomberg.com/news/2010-12-29/dodging-repatriation-tax-lets-u...
20. Center for Budget priorities. Robert Greenstein and Chye-Ching Huang. Feb. 2009. Proposed Tax Break For Multinationals Would Be Poor Stimulus
“Dividend Repatriation Tax Holiday” Failed in 2004, Unlikely to Work Now. http://www.cbpp.org/cms/index.cfm?fa=view&id=2270
- Mark Provost's blog
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GOP Governors Ready to Kill Public Employee Contracts
01/01/2011 – David Dayen, FDL News Desk
In Unfolding War on Public Employees, State Lawmakers and Media Likely to Do the Work Themselves
12/27/2010 – David Dayen, FDL News Desk
The War on Public Employees
12/21/2010 – David Dayen, FDL News Desk
LaHood Revokes Wisconsin, Ohio High Speed Rail Money, Gives to Other States
12/09/2010 – David Dayen, FDL News Desk
Tax Cut Deal Gives $139,000 to Every Millionaire in America
12/09/2010 – David Dayen, FDL News Desk
Pay Freeze Could Cripple Dodd-Frank
12/05/2010 – David Dayen, FDL News Desk
OFA Tries to Get Supporters to Write Letters to the Editor Praising a Federal Worker Pay Freeze
11/30/2010 – David Dayen, FDL News Desk
Pay Freeze Decision Smacks of Too-Cute Political Team Running the Show
11/29/2010 – David Dayen, FDL News Desk
"Responsible" Obama Administration Doesn't Think Federal Employees Facing Pay Cut Will Leave to the Private Sector
11/29/2010 – David Dayen, FDL News Desk
President Obama Will Freeze Federal Worker Pay for Two Years
11/29/2010 – David Dayen, FDL News Desk
The Return of Unreality-Based Government
11/12/2010 – Swopa, Firedoglake
Fiscal Commission Recommendations: VA Co-Pays, Top Tax Rate 23%
11/10/2010 – David Dayen, FDL News Desk
LaHood Threatens to Take HSR Stimulus Money from Ohio, Wisconsin
11/10/2010 – David Dayen, FDL News Desk
WA, WI, and CO Senate Races All Extremely Close
10/19/2010 – Jon Walker, Elections
President Looks at Reductions in Public Employees at Federal Agencies
10/15/2010 – David Dayen, FDL News Desk
Does Pat Sajak's Military Service Disqualify Him from Voting?
10/14/2010 – David Dayen, FDL News Desk
Another Week, Another Weak Set of Polls for House Democrats
10/13/2010 – Jon Walker, Elections
Public Pension Fearmongering Proxy for Union-Busting
10/13/2010 – David Dayen, FDL News Desk
LIVE: Russ Feingold-Ron Johnson Debate Watch Party
10/08/2010 – Jane Hamsher, Firedoglake
LaHood Pushes Back on GOP Crusade Against High Speed Rail
10/05/2010 – David Dayen, FDL News Desk
Voter Caging Scheme Uncovered in Wisconsin
09/20/2010 – David Dayen, FDL News Desk
On Wisconsin and Beyond: The War on the Working Class |
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I do believe we've found the GOP's game plan
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Pressure Rises as 30,000 Come to Madison to Block Wisconsin Public Employee Bill
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Teachers Walk Out in Madison to Join Protests Over Public Employee Bill in Wisconsin
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Large Rally in Wisconsin Against Stripping Collective Bargaining Rights for Public Employees
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Boehner: Let Them Eat Cake
02/15/2011 – David Dayen, FDL News Desk
Debate Over Wisconsin Collective Bargaining Gets Heated as Republicans Waver
02/14/2011 – David Dayen, FDL News Desk
Wisconsin Bill to Strip Collective Bargaining for Public Employees Part of a Pattern
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Late Night: The Shock Doctrine in Wisconsin
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Rick Scott Plans Massive Budget Cuts, Corporate Tax Cuts
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02/07/2011 – David Dayen, FDL News Desk
Steven Pearlstein's "Grand Bargain" for Public Employees
01/12/2011 – David Dayen, FDL News Desk
The War on Public Employees, Cont'd
01/06/2011 – David Dayen, FDL News Desk
The Bipartisan War on Public Employees
01/03/2011 – David Dayen, FDL News Desk
GOP Governors Ready to Kill Public Employee Contracts
01/01/2011 – David Dayen, FDL News Desk
In Unfolding War on Public Employees, State Lawmakers and Media Likely to Do the Work Themselves
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The War on Public Employees
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LaHood Revokes Wisconsin, Ohio High Speed Rail Money, Gives to Other States
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Tax Cut Deal Gives $139,000 to Every Millionaire in America
12/09/2010 – David Dayen, FDL News Desk
Pay Freeze Could Cripple Dodd-Frank
12/05/2010 – David Dayen, FDL News Desk
OFA Tries to Get Supporters to Write Letters to the Editor Praising a Federal Worker Pay Freeze
11/30/2010 – David Dayen, FDL News Desk
Pay Freeze Decision Smacks of Too-Cute Political Team Running the Show
11/29/2010 – David Dayen, FDL News Desk
"Responsible" Obama Administration Doesn't Think Federal Employees Facing Pay Cut Will Leave to the Private Sector
11/29/2010 – David Dayen, FDL News Desk
President Obama Will Freeze Federal Worker Pay for Two Years
11/29/2010 – David Dayen, FDL News Desk
The Return of Unreality-Based Government
11/12/2010 – Swopa, Firedoglake
Fiscal Commission Recommendations: VA Co-Pays, Top Tax Rate 23%
11/10/2010 – David Dayen, FDL News Desk
LaHood Threatens to Take HSR Stimulus Money from Ohio, Wisconsin
11/10/2010 – David Dayen, FDL News Desk
WA, WI, and CO Senate Races All Extremely Close
10/19/2010 – Jon Walker, Elections
President Looks at Reductions in Public Employees at Federal Agencies
10/15/2010 – David Dayen, FDL News Desk
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10/14/2010 – David Dayen, FDL News Desk
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Voter Caging Scheme Uncovered in Wisconsin
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2/25/11
Tripoli protesters "fired upon"
Via:The BBC World/africa
Gaddafi: ''We will fight those who are against us''
There are reports of deaths and injuries, but no reliable information about casualties.
Meanwhile, state TV has shown pictures of Colonel Gaddafi addressing a large crowd in Tripoli's Green Square.
He was shown speaking from the old city ramparts and urging the crowd to arm themselves and defend the nation and its oil against anti-government protesters who have taken control of large parts of the country
As his supporters waved green flags, the symbol of Col Gaddafi's rule, he said: "Life without dignity has no value, life without green flags has no value. Sing, dance and prepare yourselves."
Later, at a hastily organised news conference at the United Nations in New York, Libyan deputy ambassador Ibrahim Dabbashi described Col Gaddafi, who has been in power for 42 years, as a "madman" and warned that thousands would die in Tripoli because the Libyan leader would never flee, and would fight to the end.
He urged all Libyan diplomats across the world to renounce the regime and make it clear that they represented the people, not Col Gaddafi, and called on African states not to send soldiers or aid to his government.
Earlier, state TV said the government would give each family 500 dinars (£250; $400) to cover increased food costs, while some public sector workers would receive a pay rise of 150%.
However, much of Libya is now in the hands of anti-government forces, and the UN World Food Programme
says Libya's food supply chain is at risk of collapse because imports have not been getting into the country and food distribution is hampered by violence.
Fighting has raged for the past week outside the capital between anti-government forces and pro-Gaddafi troops and militiamen. The UN has said reports from Libya indicate thousands may have been killed or injured.
'City is closed' In the capital on Friday, witnesses reported that protesters streamed out of a mosque in central Tripoli after the end of prayers at lunchtime.
They were confronted by a force of troops and militiamen who opened fire on them in the Suq al-Jumaa area as they headed towards Green Square. Snipers on rooftops are also said to have fired on the marchers.
Reports of anti-government protesters being fired on have also come from other areas of the capital including Fashloom, Janzour and Zawlyat al-Dahmani.
"Many people are being killed right now in Tripoli, I just got a few phone calls from friends who witnessed people going out of mosques being shot at," one Tripoli resident told the BBC.
"I am very scared to leave the house. I was planning to visit my parents, but they called me and told me not to go out because there's heavy security on the main roads, stopping cars for checks.
"We haven't left the house for six days, apart from going out to buy bread. The city is completely closed."
Outside Tripoli, reports say attempts by pro-Gaddafi forces to take back territory in the cities of Zawiya and Misrata have been repulsed.
However, an elite brigade commanded by Col Gaddafi's son Khamis is believed to be dug in around the capital.
'Appalling and unacceptable' Evacuations of foreign nationals from Libya by sea continued on Friday, although rough weather hampered the operations.
Hundreds of sub-Saharan Africans are said to be fleeing southern Libya into Niger. Many more are stranded in Libya, where they say they are being attacked by people accusing them of being mercenaries fighting for Col Gaddafi.
An emergency session of the UN human rights council in Geneva has recommended suspending Libya from the body, and authorised an international investigation into the violence in the country with a view to prosecuting those responsible.
"In brazen and continuing breach of international law, the crackdown in Libya of peaceful demonstrations is escalating alarmingly with reported mass killings, arbitrary arrests, detention and torture of protesters," said Navi Pillay, UN high commissioner for human rights.
"Tanks, helicopters and military aircraft have reportedly been used indiscriminately to attack the protesters. According to some sources, thousands may have been killed or injured."
The UN Security Council is meeting later in New York to discuss Libya. Diplomats say Britain and France have drawn up a draft resolution with a package of measures aimed at isolating Libya's political and military leaders.
Elements could include targeted sanctions, an arms embargo, and a proposed referral of the situation in Libya to the International Criminal Court
.
Nato ambassadors are currently holding emergency talks in Brussels on the situation in Libya, but Secretary General Anders Fogh Rasmussen says the Western military alliance has no intention of intervening.
British Prime Minister David Cameron described the violence in Libya as "appalling and unacceptable", adding: "People working for this regime... should remember that international justice has a long reach and a long memory."
Are you in Libya? What is your experience of the unrest? Are you an expat trying to leave? You can send us your experiences
Via:The BBC World/africa
Gaddafi: ''We will fight those who are against us''
Anti-government protesters in Tripoli have come under heavy gunfire, latest reports from the Libyan capital say.
Protests in the city resumed as those seeking the overthrow of Libyan leader Muammar Gaddafi emerged from mosques following Friday prayers.There are reports of deaths and injuries, but no reliable information about casualties.
Meanwhile, state TV has shown pictures of Colonel Gaddafi addressing a large crowd in Tripoli's Green Square.
He was shown speaking from the old city ramparts and urging the crowd to arm themselves and defend the nation and its oil against anti-government protesters who have taken control of large parts of the country
"Life without dignity has no value, life without green flags has no value”Quote Col Muammar Gaddafi Libyan leader"This is the people that brought Italy to its knees," he said, referring to the overthrow of Libya's colonial rulers. "I am amid the masses, and we shall fight, and we shall defeat them."We shall destroy any aggression with popular will. With the armed people, when necessary we will open the weapons depots. So that all the Libyan people, all the Libyan tribes can be armed. Libya will become a red flame, a burning coal."
Later, at a hastily organised news conference at the United Nations in New York, Libyan deputy ambassador Ibrahim Dabbashi described Col Gaddafi, who has been in power for 42 years, as a "madman" and warned that thousands would die in Tripoli because the Libyan leader would never flee, and would fight to the end.
He urged all Libyan diplomats across the world to renounce the regime and make it clear that they represented the people, not Col Gaddafi, and called on African states not to send soldiers or aid to his government.
However, much of Libya is now in the hands of anti-government forces, and the UN World Food Programme
Fighting has raged for the past week outside the capital between anti-government forces and pro-Gaddafi troops and militiamen. The UN has said reports from Libya indicate thousands may have been killed or injured.
'City is closed' In the capital on Friday, witnesses reported that protesters streamed out of a mosque in central Tripoli after the end of prayers at lunchtime.
They were confronted by a force of troops and militiamen who opened fire on them in the Suq al-Jumaa area as they headed towards Green Square. Snipers on rooftops are also said to have fired on the marchers.
"Many people are being killed right now in Tripoli, I just got a few phone calls from friends who witnessed people going out of mosques being shot at," one Tripoli resident told the BBC.
"I am very scared to leave the house. I was planning to visit my parents, but they called me and told me not to go out because there's heavy security on the main roads, stopping cars for checks.
"We haven't left the house for six days, apart from going out to buy bread. The city is completely closed."
Outside Tripoli, reports say attempts by pro-Gaddafi forces to take back territory in the cities of Zawiya and Misrata have been repulsed.
However, an elite brigade commanded by Col Gaddafi's son Khamis is believed to be dug in around the capital.
'Appalling and unacceptable' Evacuations of foreign nationals from Libya by sea continued on Friday, although rough weather hampered the operations.
- The Foreign Office is advising against all but essential travel to Libya
- UK nationals in Libya wishing to get on the charter flight are advised to call the following numbers:
- 020 7008 0000 from the UK or 021 3403644/45 from within Libya
Britain has sent a second ship, the destroyer HMS York, to deploy to the sea area near Libya. The frigate HMS Cumberland has picked up more than 200 people and is taking them to Malta.
India is sending warships to the region to evacuate its nationals.Hundreds of sub-Saharan Africans are said to be fleeing southern Libya into Niger. Many more are stranded in Libya, where they say they are being attacked by people accusing them of being mercenaries fighting for Col Gaddafi.
An emergency session of the UN human rights council in Geneva has recommended suspending Libya from the body, and authorised an international investigation into the violence in the country with a view to prosecuting those responsible.
"In brazen and continuing breach of international law, the crackdown in Libya of peaceful demonstrations is escalating alarmingly with reported mass killings, arbitrary arrests, detention and torture of protesters," said Navi Pillay, UN high commissioner for human rights.
"Tanks, helicopters and military aircraft have reportedly been used indiscriminately to attack the protesters. According to some sources, thousands may have been killed or injured."
The UN Security Council is meeting later in New York to discuss Libya. Diplomats say Britain and France have drawn up a draft resolution with a package of measures aimed at isolating Libya's political and military leaders.
Elements could include targeted sanctions, an arms embargo, and a proposed referral of the situation in Libya to the International Criminal Court
Nato ambassadors are currently holding emergency talks in Brussels on the situation in Libya, but Secretary General Anders Fogh Rasmussen says the Western military alliance has no intention of intervening.
British Prime Minister David Cameron described the violence in Libya as "appalling and unacceptable", adding: "People working for this regime... should remember that international justice has a long reach and a long memory."
Rortybomb
Walker’s Budget Plan is a Three-Part Roadmap for Conservative State Governance
Posted in Uncategorized by Mike on February 24, 2011
Tim Fernholz wrote an excellent article in the National JournalThere’s a three-prong approach in Governor Walker’s plan that highlights a blueprint for conservative governorship after the 2010 election. The first is breaking public sector unions and public sector workers generally. The second is streamlining benefits away from legislative authority, especially for health care and in fighting the Health Care Reform Act. The third is the selling of public assets to private interests under firesale and crony capitalist situations.
This wasn’t clear to me at first. I thought this was about a narrow disagreement over teacher’s unions. Depending on what you read, you may have only seen a few of these parts, and you may have not seen them put together as a coherent whole. This will be the framework that other conservative governors, and even a few Democratic ones, will use in their state, so it is good to get a working model in place. In order to frame where it stands now, I’m going to chart this and give a set of descriptions and must-read links:
Defund and Delegitimize Public Workers
You wouldn’t know this from the popular narrative, but, as Zach Carter found, Wisconsin’s public pensions are among the nation’s healthiest. Carter walks you through the numbers from people like the nonpartisan Pew Center for the States, which found Wisconsin to be a “national leader in managing its long-term liabilities for both pension and retiree health care.”
There are many things, like removing unions’ ability to collect dues or requiring annual votes, that aren’t budgetary or service driven at all but are simply mechanisms for bleeding the union dry.
What I found most interesting about the 20 minutes phone call between Governor Walker and a prankster claiming to be David Koch (transcript) is this:
WALKER: …That’s all they wanna talk is what are you doing to help in the governor in Wisconsin. Next I talked to Kasich every day, you know John’s got to stand firm in Ohio. I think we can do the same thing with Rick Scott
in Florida, I think Snyder if he got a little more support could probably do that in Michigan. We start going down the list, you know, there’s a lot of us new governors that got elected to do something, big.
KOCH: You’re the first domino.
WALKER: Yep. This is our moment…
[Walker:]…I had all my cabinet over to the residence for dinner. Talked about what we were going to do, how we were going to do it, we had already kind of doped plans up, but it was kind of a last hurrah, before we dropped the bomb and I stood up and I pulled out a, a picture of Ronald Reagan and I said you know this may seem a little melodramatic but …when he fired the air traffic controllers and uh I said to me that moment was more important than just for labor relations and or even the federal budget, that was the first crack in the Berlin Wall and the fall of Communism because from that point forward the soviets and the communists knew that Ronald Regan wasn’t a pushover…
Firing the air traffic controllers brought down the Soviet Union? When the true believers get together and talk openly, they don’t talk about this being about the budget, or getting innovative school practices in place, or whatever. It’s about showing their enemies that they mean business and aren’t pushovers. He believes that by smashing one you can smash them all. And he believes he is the first domino to move.Other states won’t need unions to fight. Notice Providence, Rhode Island firing all of their teachers, to selectively rehire them later. This is how ground out our elites want to see the labor contract.
Cutting Government Services
From the CBPP: “[Walker's] bill would strip the legislature of practically all of its authority to set the guidelines for the program (known as BadgerCare), leaving the power to do so almost solely in the governor’s hands.”
Shawn Doherty has covered this for Cap Times, as well as Jonathan Cohn, David Wahlberg of the Madison State Journal, AnnieJo at DailyKos and Amanda Terkel of Huffington Post.
This is the most important thing that has gotten the least coverage. The administration of Medicaid would be moved away from the state legislation to be more directly under the control of the Governor’s office. People may be dropped right away and there could be extreme games of chicken with the Federal government over medicaid spending.
The Wisconsin Department of Health Services is currently being run by Heritage Senior Fellow Dennis Smith, who has been making his right-wing think tanker bones arguing that states should drop out of Medicaid, the long-time dream of the extreme right. It is telling that “Smith wouldn’t discuss Medicaid provisions in the upcoming budget bill” even though it’s all he’s been writing about for years.
Specifically, one of the last things he wrote had this talking point: “Congress and the Administration have enacted a sweeping overhaul of one-sixth of the American economy, dramatically expanding the scope of federal power….When governors and state legislators realize that they have been reduced to mere agents of and tax collectors for the federal government, bipartisan opposition from the states will be inevitable.”
This power grab by the Governor will be the beachhead for slashing medicaid rolls to record lows and planning the conservative opposition against health care reform more broadly. The people who elected the Governor deserve more information about what his ultimate goals are.
Privatizing Assets
Privatize everything. Ed from ginandtacos caught the language related to no-bid energy asset sales in Walker’s bill. Both Felix Salmon and Yves Smith have followed up on how this will be a new normal for states over the next two years, where more and more government infrastructure is going to be sold into a crony favor-and-campaign-contribution trading environment. Matt Taibbi’s new book has a chapter on this topic that is really good. This is going to be much more relevant over the next two years, and we should learn about how it works and what the consequences are early on.
Notice that each of these objectives overlap with each other. Privatizing services cuts public workers out while crony deals, skimming and poor services creates distrust in the government, leading to a negative feedback loop.
States will have to deal with their budgets. There are costs coming down the road. But the important thing to understand is that the new wave of governance at the state level isn’t about handling these problems — it’s about changing what the government does in a more reactionary and polarized way. Squeezing regular people to provide benefits will maintain and expand our high levels of inequality. Its about making struggling parties weaker and strong parties richer. Making it almost impossible to raise taxes later is irresponsible and dangerous, but it accelerates this plan. They hoped to handle this all behind closed doors — sadly for them, and lucky for the public, activism and the internet are shining a large spotlight on their actions. (Figrd would like to take this moment and Thank You the Reader for sharing Figrd stories around the world it really has been making a difference in the world your community and peoples lives so...Thank YOU!)
Shock Doctrine, U.S.A.
via :The New York Times
By PAUL KRUGMAN
Here’s a thought: maybe Madison, Wis., isn’t Cairo after all. Maybe it’s Baghdad — specifically, Baghdad in 2003, when the Bush administration put Iraq under the rule of officials chosen for loyalty and political reliability rather than experience and competence.
Fred R. Conrad/The New York Times
Paul Krugman
The story of the privatization-obsessed Coalition Provisional Authority was the centerpiece of Naomi Klein’s best-selling book “The Shock Doctrine,” which argued that it was part of a broader pattern. From Chile in the 1970s onward, she suggested, right-wing ideologues have exploited crises to push through an agenda that has nothing to do with resolving those crises, and everything to do with imposing their vision of a harsher, more unequal, less democratic society.
Which brings us to Wisconsin 2011, where the shock doctrine is on full display.
In recent weeks, Madison has been the scene of large demonstrations against the governor’s budget bill, which would deny collective-bargaining rights to public-sector workers. Gov. Scott Walker claims that he needs to pass his bill to deal with the state’s fiscal problems. But his attack on unions has nothing to do with the budget. In fact, those unions have already indicated their willingness to make substantial financial concessions — an offer the governor has rejected.
What’s happening in Wisconsin is, instead, a power grab — an attempt to exploit the fiscal crisis to destroy the last major counterweight to the political power of corporations and the wealthy. And the power grab goes beyond union-busting. The bill in question is 144 pages long, and there are some extraordinary things hidden deep inside.
For example, the bill includes language that would allow officials appointed by the governor to make sweeping cuts in health coverage for low-income families without having to go through the normal legislative process.
And then there’s this: “Notwithstanding ss. 13.48 (14) (am) and 16.705 (1), the department may sell any state-owned heating, cooling, and power plant or may contract with a private entity for the operation of any such plant, with or without solicitation of bids, for any amount that the department determines to be in the best interest of the state. Notwithstanding ss. 196.49 and 196.80, no approval or certification of the public service commission is necessary for a public utility to purchase, or contract for the operation of, such a plant, and any such purchase is considered to be in the public interest and to comply with the criteria for certification of a project under s. 196.49 (3) (b).”
What’s that about? The state of Wisconsin owns a number of plants supplying heating, cooling, and electricity to state-run facilities (like the University of Wisconsin). The language in the budget bill would, in effect, let the governor privatize any or all of these facilities at whim. Not only that, he could sell them, without taking bids, to anyone he chooses. And note that any such sale would, by definition, be “considered to be in the public interest.”
If this sounds to you like a perfect setup for cronyism and profiteering — remember those missing billions in Iraq? — you’re not alone. Indeed, there are enough suspicious minds out there that Koch Industries, owned by the billionaire brothers who are playing such a large role in Mr. Walker’s anti-union push, felt compelled to issue a denial that it’s interested in purchasing any of those power plants. Are you reassured?
The good news from Wisconsin is that the upsurge of public outrage — aided by the maneuvering of Democrats in the State Senate, who absented themselves to deny Republicans a quorum — has slowed the bum’s rush. If Mr. Walker’s plan was to push his bill through before anyone had a chance to realize his true goals, that plan has been foiled. And events in Wisconsin may have given pause to other Republican governors, who seem to be backing off similar moves.
But don’t expect either Mr. Walker or the rest of his party to change those goals. Union-busting and privatization remain G.O.P. priorities, and the party will continue its efforts to smuggle those priorities through in the name of balanced budgets.
...from Cairo to Columbus from Madison ,Wisconsin to Libya Hope and Solidarity are Alive!
Here in Madison, Wisconsin, where protesters have occupied the State Capitol Building to stop the pending bill that would eliminate workers' right to collective bargaining, echoes of Cairo are everywhere. Local protesterswere elated by the photo of an Egyptian engineer named Muhammad Saladin Nusair holding a sign in Tahrir Square saying "Egypt Supports Wisconsin Workers--One World, One Pain." The signs by protesters in Madison include "Welcome to Wiscairo", "From Egypt to Wisconsin: We Rise Up", and "Government Walker: Our Mubarak." The banner I brought directly from Tahrir Square saying "Solidarity with Egyptian Workers" has been hanging from the balcony of the Capitol alongside solidarity messages from around the country.
My travels from Cairo to Madison seem like one seamless web. After camping out with the students and workers in the Capitol Building, I gave an early morning seminar on what it was like to be an eyewitness to the Egyptian revolution, and the struggles that are taking place right now in places like Libya, Bahrain and Yemen. Folks told me all day how inspiring it was to hear about the uprisings in the Arab world.
Some took the lessons from Cairo literally. Looking around at the capitol building that was starting to show the wear and tear from housing thousands of protesters, I had mentioned that in Cairo the activists were constantly scrubbing the square, determined to show how much they loved the space they had liberated. A few hours later, in Madison's rotunda, people were on their hands and knees scrubbing the marble floor. "We're quick learners," one of the high school students told me, smiling as she picked at the remains of oreo cookies sticking to the floor.
I heard echoes of Cairo in the Capitol hearing room where a nonstop line of people had gathered all week to give testimonies. The Democratic Assemblymembers have been giving folks a chance to voice their concerns about the governor's pending bill. In this endless stream of heartfelt testimonies, people talk about the impact this bill will have on their own families--their take-home pay, their healthcare, their pensions. They talk about the governor manufacturing the budget crisis to break the unions. They talk about the history of workers' struggles to earn living wages and have decent benefits. And time and again, I heard people say "I saw how the Egyptian people were able to rise up and overthrow a 30-year dictatorship, and that inspired me to rise up and fight this bill."
Solidarity is, indeed, a beautiful thing. It is a way we show our oneness with all of humanity; it is a way to reaffirm our own humanity. CODEPINK sent flowers to the people in Tahrir Square--a gesture that was received with kisses, hugs and tears from the Egyptians. The campers in Madison erupted in cheer when they heard that an Egyptian had called the local pizza place, Ians Pizza, and placed a huge order to feed the protesters. "Pizza never tasted so good," a Wisconsin fireman commented when he was told that the garlic pizza he was eating had come from supporters in Cairo. Egyptian engineer Muhammad Saladin Nusair, the one whose photo supporting Wisconsin workers went viral, now has thousands of new American Facebook friends. He wrote in his blog that many of his new friends were surprised by his gesture of solidarity, but he was taught that "we live in ONE world and under the same sky."
"If a human being doesn't feel the pain of his fellow human beings, then everything we've created and established since the very beginning of existence is in great danger," Muhammad wrote. "We shouldn't let borders and differences separate us. We were made different to complete each other, to integrate and live together. One world, one pain, one humanity, one hope." From the trenches of Madison's State Capitol Building, hope--and solidarity--are alive and well.
Scores of union members from other states joined the pro-labor rallies Monday at the state Capitol, saying they fear for their own collective bargaining rights because of what's happening here.
"Wisconsin is making us nervous," said Carolina Hill, 45, a Chicago school social worker who arrived on one of two buses sponsored by the Chicago Teachers Union. Schools there were closed for Presidents Day.
Madison police provided no official estimate of Monday's crowd size. Capitol Police estimated the crowd inside the Capitol at 4,900 at about 1 p.m. A large outdoor rally on the Capitol steps was occurring simultaneously.
The rallies began the second week of protests over Republican Gov. Scott Walker's plan to eliminate the ability of unionized state workers to negotiate for anything other than salary increases.
Joanne Andrews, 62, a retired teacher from New York, said she drove 13 hours with her daughter to spend 24 hours protesting in Madison. "Unions are so important to everybody," she said. "They're why workers have so many of the rights we have today."
Meanwhile, solidarity protests are planned in other states. The Minnesota AFL-CIO called a rally Tuesday at the state Capitol in St. Paul. Similar rallies are being held in Des Moines, Iowa, Lansing, Mich., and Sacramento, Calif.
John Matthews, executive director of Madison Teachers Inc., said 300 California teachers are flying in Wednesday to join Madison protesters.
Protesters Monday included a variety of public safety workers, from Beloit police officers to Manitowoc firefighters and Dane County sheriff deputies. All were greeted with chants of "Thank you, thank you" as they marched into the Rotunda.
Among the more renowned protesters was Jeff Skiles, the "Miracle on the Hudson River" co-pilot who was hailed as a hero in 2009 for helping safely land a US Airways
plane in New York.
"Gov. Walker's plan goes too far to promote an extreme right-wing agenda of what America should look like," he said at a press conference.
Skiles, who lives in the city of Oregon near Madison, said he has been protesting at the Capitol numerous hours daily since Friday. His daughter, Kelly, a UW-Madison student, and his son, Matt, an Oregon High School junior, have slept some nights at the Capitol.
"I have never been more proud of them," Skiles said.
"Wisconsin is making us nervous," said Carolina Hill, 45, a Chicago school social worker who arrived on one of two buses sponsored by the Chicago Teachers Union. Schools there were closed for Presidents Day.
Madison police provided no official estimate of Monday's crowd size. Capitol Police estimated the crowd inside the Capitol at 4,900 at about 1 p.m. A large outdoor rally on the Capitol steps was occurring simultaneously.
The rallies began the second week of protests over Republican Gov. Scott Walker's plan to eliminate the ability of unionized state workers to negotiate for anything other than salary increases.
Joanne Andrews, 62, a retired teacher from New York, said she drove 13 hours with her daughter to spend 24 hours protesting in Madison. "Unions are so important to everybody," she said. "They're why workers have so many of the rights we have today."
Meanwhile, solidarity protests are planned in other states. The Minnesota AFL-CIO called a rally Tuesday at the state Capitol in St. Paul. Similar rallies are being held in Des Moines, Iowa, Lansing, Mich., and Sacramento, Calif.
John Matthews, executive director of Madison Teachers Inc., said 300 California teachers are flying in Wednesday to join Madison protesters.
Protesters Monday included a variety of public safety workers, from Beloit police officers to Manitowoc firefighters and Dane County sheriff deputies. All were greeted with chants of "Thank you, thank you" as they marched into the Rotunda.
Among the more renowned protesters was Jeff Skiles, the "Miracle on the Hudson River" co-pilot who was hailed as a hero in 2009 for helping safely land a US Airways
"Gov. Walker's plan goes too far to promote an extreme right-wing agenda of what America should look like," he said at a press conference.
Skiles, who lives in the city of Oregon near Madison, said he has been protesting at the Capitol numerous hours daily since Friday. His daughter, Kelly, a UW-Madison student, and his son, Matt, an Oregon High School junior, have slept some nights at the Capitol.
"I have never been more proud of them," Skiles said.
Wisconsin Draws the Line on Austerity Opportunism and Class War.
As a Chicagoan, I’m often lead to believe that the Upper-Midwest is the only place of sanity in this country. So I’m proud to see Wisconsin be the place where people draw the line and call BS on the attack on public workers, state budgets, and austerity amidst a financial, foreclosure and economic crisis where the government’s response has had the protection of banks, bondholders, creditors, Wall Street and the top 1% at all costs as the driving tenant, a class war driven by the rich. Here are some other things I’m reading on the protests.
Doug Henwood was local when the protests started, and has pictures, thoughts and followup. Joel Rogers explains the politics of Wisconsin to Henwood: “To outsiders, it’s mysterious that the same state could have spawned Joe McCarthy and Robert LaFolette, or Scott Walker and Russ Feingold
No Budget Crisis
TPM finds the key point, quoting Madison’s Capital Times:
In its Jan. 31 memo to legislators on the condition of the state’s budget, the Fiscal Bureau determined that the state will end the year with a balance of $121.4 million.Cutting taxes for friends to provoke a short-term crisis to taking a bite out of working people providing services for the people. There is a class war, being waged by the rich on the rest of us.
To the extent that there is an imbalance — Walker claims there is a $137 million deficit — it is not because of a drop in revenues or increases in the cost of state employee contracts, benefits or pensions. It is because Walker and his allies pushed through $140 million in new spending for special-interest groups in January.
Not About the Budget
The most important thing to understand about the proposed changes in Wisconsin is that a lot of the proposed changes about unions have nothing to do with the state budget. One rule is that unions are not being able to collect dues. This has nothing to do with the state budget. A lot of it has to do with the union’s ability to bargain or secure future wages. That has nothing directly to do with the budget. The Republicans have enough votes to mandate benefit cuts for the unions if it was a budget thing. But it isn’t. It’s simply using the state to quash a union that opposed a Governor’s election by bleeding it out. As Ezra Klein noted:
The proposal doesn’t stop there, though. “Contracts would be limited to one year and wages would be frozen until the new contract is settled. Collective bargaining units are required to take annual votes to maintain certification as a union. Employers would be prohibited from collecting union dues and members of collective bargaining units would not be required to pay dues.” These rules have nothing to do with pension costs or even bargaining. They’re just about weakening unions: They make it harder for unions to collect dues from members, to negotiate stable contracts or to survive a bad year.Talk about the Shock Doctrine.
The best way to understand Walker’s proposal is as a multi-part attack on the state’s labor unions. In part one, their ability to bargain benefits for their members is reduced. In part two, their ability to collect dues, and thus spend money organizing members or lobbying the legislature, is undercut. And in part three, workers have to vote the union back into existence every single year. Put it all together and it looks like this: Wisconsin’s unions can’t deliver value to their members, they’re deprived of the resources to change the rules so they can start delivering value to their members again, and because of that, their members eventually give in to employer pressure and shut the union down in one of the annual certification elections.
You may think Walker’s proposal is a good idea or a bad idea. But that’s what it does. And it’s telling that he’s exempting the unions that supported him and is trying to obscure his plan’s specifics behind misleading language about what unions can still bargain for and misleading rhetoric about the state’s budget.
Again Not Overpaid
Econbrowser’s Menzie Chinn graphed up Keefe’s paper on Wisconsin for EPI. We’ve gone through this before, but controlling for education and benefits state government workers make less than private sector workers. Red is public sector workers:
An Attack On Women
As Dana Goldstein writes, the unions exempted from these attacks are those more likely to have supported Walker, and they are also those more likely to be male:
The Wisconsin GOP’s war on public sector unions–except those representing police officers, firefighters, and state troopers–is not only a craven attack on the Democratic base, but sexist, too, since predominantly male professions are deliberately protected while female ones are targeted.
About 80 percent of American teachers, for example, are female; at the elementary school level, nearly 90 percent are women. Nursing is 95 percent female. Nationwide, the majority of public sector union members, represented by AFSCME and other groups, are women.
Meanwhile, over 70 percent of law enforcement workers in the United States are men. Our firefighting ranks are 96 percent male and over half of all professional firefighting departments have never hired a woman.
Posted: 18 Feb 2011 08:53 PM PST
→ Washington’s BlogI noted in 2009, in an article entitled “Does The Government Manipulate Social Media?”:
The U.S. government long ago announced its intention to “fight the net”.(other governments and large companies “astroturf” online as well. See this, this and this.)
As revealed by an official Pentagon report signed by Rumsfeld called “Information Operations Roadmap”:
The roadmap [contains an] acknowledgement that information put out as part of the military’s psychological operations, or Psyops, is finding its way onto the computer and television screens of ordinary Americans.Indeed, the Pentagon publicly announced years ago that it was considering using “black propaganda” – in other words, knowing lies.
“Information intended for foreign audiences, including public diplomacy and Psyops, is increasingly consumed by our domestic audience,” it reads.
“Psyops messages will often be replayed by the news media for much larger audiences, including the American public,” it goes on.
***
“Strategy should be based on the premise that the Department [of Defense] will ‘fight the net’ as it would an enemy weapons system”.
CENTCOM announced in 2008 that a team of employees would be “[engaging] bloggers who are posting inaccurate or untrue information, as well as bloggers who are posting incomplete information.”The Air Force is now also engaging bloggers. Indeed, an Air Force spokesman said:
“We obviously have many more concerns regarding cyberspace than a typical Social Media user,” Capt. Faggard says. “I am concerned with how insurgents or potential enemies can use Social Media to their advantage. It’s our role to provide a clear and accurate, completely truthful and transparent picture for any audience.”In other words, the government is targeting “social media”, including popular user-ranked news sites.
In addition, when you look at what the Israeli lobby has done with Megaphone software to automatically vote stories questioning Israel down and to send pro-Israel letters to politicians and media (see this, this and this), you can start to see how the U.S. military – an even larger and better-funded organization – could substantially influence voting on social news sites with very little effort.
Moreover,the military has outsourced many projects to private contractors. For example, in Iraq, much of the fighting has been outsourced to Blackwater. And governmental intelligence functions have largely been outsourced to private companies.
It is therefore not impossible that the government is hiring cheap labor to downvote stories on the social media sites which question the government, and to post pro-government comments.
I pointed out the same month:
Government propagandists, their hired private contractors and useful idiots are creating “downvote bots” or scripts to bury stories which question the government.Today, Raw Story reports that the Air Force ordered software to manage army of fake virtual people:
***
One free, simple scripting program to create automatic downvotes of certain topics or news posters is called “Greasemonkey”, which is commonly used on large social news sites such as Reddit.
For example, there are some 2,480 hits [now past 9,000] for the google search site:reddit.com greasemonkey downvote. This is some 2,480 times that Reddit users are publicly admitting to using greasemonkey (see also this).
Propaganda agents obviously aren’t going to publicly brag about what they are doing, and you can bet that their use of downvote bots is much greater. Moreover, they probably have more sophisticated software than Greasemonkey.
Internet users would be well advised to ask another question entirely: Are my “friends” even real people?In the continuing saga of data security firm HBGary, a new caveat has come to light: not only did they plot to help destroy secrets outlet WikiLeaks and discredit progressive bloggers, they also crafted detailed proposals for software that manages online “personas,” allowing a single human to assume the identities of as many fake people as they’d like.
The revelation was among those contained in the company’s emails, which were dumped onto bittorrent networks after hackers with cyber protest group “Anonymous” broke into their systems.
In another document unearthed by “Anonymous,” one of HBGary’s employees also mentioned gaming geolocation services to make it appear as though selected fake persons were at actual events.
“There are a variety of social media tricks we can use to add a level of realness to all fictitious personas,” it said.Government involvement
Eerie as that may be, more perplexing, however, is a federal contract from the 6th Contracting Squadron at MacDill Air Force Base, located south of Tampa, Florida, that solicits providers of “persona management software.”
While there are certainly legitimate applications for such software, such as managing multiple “official” social media accounts from a single input, the more nefarious potential is clear.
Unfortunately, the Air Force’s contract description doesn’t help dispel their suspicions either. As the text explains, the software would require licenses for 50 users with 10 personas each, for a total of 500. These personas would have to be “replete with background , history, supporting details, and cyber presences that are technically, culturally and geographacilly consistent.”
It continues, noting the need for secure virtual private networks that randomize the operator’s Internet protocol (IP) address, making it impossible to detect that it’s a single person orchestrating all these posts. Another entry calls for static IP address management for each persona, making it appear as though each fake person was consistently accessing from the same computer each time.
The contract also sought methods to anonymously establish virtual private servers with private hosting firms in specific geographic locations. This would allow that server’s “geosite” to be integrated with their social media profiles, effectively gaming geolocation services.
The Air Force added that the “place of performance” for the contract would be at MacDill Air Force Base, along with Kabul, Afghanistan and Baghdad. The contract was offered on June 22, 2010.
It was not clear exactly what the Air Force was doing with this software, or even if it had been procured.
Manufacturing consent
Though many questions remain about how the military would apply such technology, the reasonable fear should be perfectly clear. “Persona management software” can be used to manipulate public opinion on key information, such as news reports. An unlimited number of virtual “people” could be marshaled by only a few real individuals, empowering them to create the illusion of consensus.
***
That’s precisely what got DailyKos blogger Happy Rockefeller in a snit: the potential for military-run armies of fake people manipulating and, in some cases, even manufacturing the appearance of public opinion.
“I don’t know about you, but it matters to me what fellow progressives think,” the blogger wrote. “I consider all views. And if there appears to be a consensus that some reporter isn’t credible, for example, or some candidate for congress in another state can’t be trusted, I won’t base my entire judgment on it, but it carries some weight.
“That’s me. I believe there are many people though who will base their judgment on rumors and mob attacks. And for those people, a fake mob can be really effective.”
***
“Team Themis” [tasked by the Chamber of Commerce to come up with strategies for responding to progressive bloggers and others] also included a proposal to use malware hacks against progressive organizations, and the submission of fake documents in an effort to discredit established groups.HBGary was also behind a plot by Bank of America to destroy WikiLeaks’ technology platform, other emails revealed. The company was humiliated by members of “Anonymous” after CEO Aaron Barr bragged that he’d “infiltrated” the group.
Gaming social media is only one propaganda technique employed by the government:
- Famed Watergate reporter Carl Bernstein says the CIA has already bought and paid for many successful journalists
- The New York Times discusses in a matter-of-fact way the use of mainstream writers by the CIA to spread messages
- A 4-part BBC documentary called the “Century of the Self” shows that an American – Freud’s nephew, Edward Bernays – created the modern field of manipulation of public perceptions, and the U.S. government has extensively used his techniques
- The Independent discusses allegations of American propaganda
- And one of the premier writers on journalism says the U.S. has used widespread propaganda
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