California gets a dose of W.H. strong-arm politics

What the federal government gives, it can also take away. The state of California is learning this the hard way as the Obama administration threatens to rescind stimulus funds if the California state government doesn't restore wage cuts to the unionized home health care workers.

Two things at play here: the intimate relationships between unions and Democrats and the White House's disregard for a state.

The unions in questions are the powerful Service Employees International Union (SEIU) and United Domestic Workers (not in the motherly sense). In fact, it was the SEIU which went to the W.H. to ask for a ruling on this matter.

This also shows the administration's disregard for a state. The wage cut is a necessary step in keeping California afloat as it's operating on IOUs already. These health care workers aren't the only ones affected by wage cuts. The state legislature passed a state law but looks like the W.H. has a problem with that. Does the administration truly have the state's interest in mind?

States which have accepted the stimulus money should take note. This money comes with strings attached -- many which aren't to the states' benefit. Be warned.

Successful D.C. voucher program killed, of course it doesn't affect Obama's kids

The D.C. school voucher program has been a success story in the country's often grim education system. This program allows disadvantaged D.C. children in failing schools to attend others to get a good education.

But the Senate killed the program. Worse yet, the White House and senators knew from a report how successful the D.C. program has been, and they delayed the release of the report until after killing the program.

The children of these politicians, including the First Daughters, won't be affected by this for obvious reasons. Poor minority kids are the ones who will suffer. Whatever happened to President Obama's promise on improving education for all children?

Blame the teacher's unions. Blame their lobbyists. Blame their cozy relations with the Democrats. Blame those Democratic Senators whose only concern is staying in power -- not the welfare of children.

UAW owns a $6M golf course

All that union membership fees put to good use... in owning and operating a golf course!

Blaming Republicans, defending unions

Rose Ann DeMoro of the Huffington Post comes out swinging at the Senate Republicans, specifically their leader Mitch McConnell, in the matter of helping the auto industry. Funny title for an article: The Mitch Who Stole Christmas -- just in time for the holidays. Too bad she lacks the holiday spirit, calling Sen. McConnell "mean-spirited," "vilifying unions," and "cynical"...

Ms. DeMoro is upset over the Republicans' demand for "parity pay structure," or cutting wages and benefits for UAW laborers. She doesn't think it has anything to do with what's wrong with Detroit. Well, she's partially right -- unions share the blame with the clueless auto executives. Japanese automakers don't have to deal with excessive union contracts like G.M. has to, so naturally they can sell their cars cheaper than their American competitors. It's not about "punishing workers" as DeMoro argued, but rather staying competitive in the marketplace. And in the long run, allowing the employer to survive so the workers can still work. After all, nobody benefits from G.M. closing shop.

Being the liberal that she is, of course this has to tie into universal health care:

Or helping employers, as well as the people who work for them, by shifting healthcare coverage costs from employers to a national system like Medicare. It's one major reason why car producers have lower costs in other industrial countries which have national healthcare systems. It would also guarantee healthcare coverage for the millions of Americans who have lost, or are losing their jobs or employer-coverage in this recession, or were already uninsured.

Instead of cutting health care benefits, why not offload the obligation to a nationalized system like Medicare or some other universal health care plan. (I'm guessing she voted for Obama.) That actually sounds like a reasonable argument, but deep down it only means burdening taxpayers (including the workers) with UAW's health care bill.

No, thank you! Everybody is suffering in this recession, not just the auto workers.

But she concludes with a decent point:

During the last major Depression, we experienced a wave of union growth. A direct result was the full flowering of economic prosperity for American families and an unprecedented economic boom in the 1950s and '60s. The erosion of that dream and the shocking wealth chasm in our nation has coincided directly with the decline in union membership and the relentless attack on unions during the Bush-McConnell reign.

But let's just say that the unions of today is very different than those of the last Depression. There's nothing wrong with labor unions. In fact, it is indeed a good way for workers to organize and protect each other against injustices in the work place. However, mega-unions like the UAW, National Education Association, and American Federation of Teachers, have morphed into something sinister, something resembling political parties. And that stems from union leaders cozying up to Washington, particularly the Democrats, to stay in power and further their own agendas.

It is a shame that the UAW is getting so much negative attention in light of Detroit's troubles. Unfortunately, UAW leaders brought this unto themselves and their union colleagues for taking advantage of their employers and being a hard-headed cry-baby all these years...

Senate kills auto bailout bill

A few moderate Democrats joined forces with Republican senators to kill the $14 billion bailout bill after the UAW refused to cede wage and benefits to match those of foreign carmakers like Toyota and Honda. But now it seems the White House may step in to help Big Auto with TARP funds.

However, fingers are pointing everywhere already...

Democrats are blaming Republicans and the White House for not lining up their ducks, causing wasted energy and time, especially after the House passed the initial plan. Republicans are standing firm on greater concessions by Big Auto and its unions or else Detroit won't see a penny. They also bring up the point that Democrats have been too intimate with UAW and its largess, ultimately causing the downfall of G.M., Ford, and Chrysler.

It's a disturbing fact indeed that UAW and its political action committees have donated millions and millions to Congressional Democrats to lobby for labor benefits. Now look at what's happening. Daniel Howes of the Detroit News says it's Republican payback. That's certainly an oversimplified view of the situation. The bottom line is that the recession is hurting everyone, but not everyone is coming out asking for government handout. Why should taxpayers, many of whom are losing homes and jobs, further thin their wallets for these mismanaged corporations?

It bothers John B. Judis of The New Republic even more:

Here’s what bothers me. Japanese companies, which for years have benefited from one-way deal by which they could sell cars in the U.S. while U.S. companies were stymied in selling cars and trucks in Japan, set up non-union plants in low-wage, low-education, right-to-work states where they can pay less wages and benefits to their workers. Of course, in Japan, these same companies recognize and work with unions, but not here, where they have a chance to undercut American firms that work with unions. Corker and these other great patriots want to allow these Japanese companies to dictate the wages and benefits that American companies pay their workers. It’s despicable. Imagine, for a moment, American companies being allow to operate in this manner in Japan or South Korea. It would not happen.

Yes, that is part of the problem -- unfair trade practices between Japan and the U.S. But keep in mind that the Democrats control the House and the Senate and soon the White House! Why hasn't even one Democrat draft legislation to reverse this unfair trade? All they are thinking about is where and how to give more government handout, filling the media and our heads with images of an unemployment apocalypse triggering Great Depression II. Putting it bluntly, Democrats control the federal government, but they are not leading the nation.

And Judis ends with this:

Put it this way. What we have learned from the economics of the Great Depression is that in order to end the spiral of unemployment, government has to throw money at companies and consumers. It should be trying to raise wages, not lower them. The Wall Street bailout was a fiasco, but it was probably better than nothing. And the auto bailout was considerably better thought-out. Now there is a good prospect that two of the Big Three will fail, jeopardizing, perhaps, as many as a million jobs. That’s exactly the kind of thing that Americans should not be doing. But don’t tell that to those great patriots Corker, DeMint, or Shelby. They know better.

Anyone with basic understanding of capitalism and the fundamental economic principle of supply and demand would know Judis's thinking is flawed. Instead of the government throwing money, how about just not taking as much in taxes to let the companies and consumers decide what to do with it? Instead of trying to legislate acceptable wages, why not just let the market decide? The Great Depression was prolonged because of government intervention. The government should just get out of the way -- Americans have always found a way to recover and thrive without handouts!

WaPo defends unions and criminal trespass

When an article titled "Unions Aren't the Problem" shows up, you know it's going to be entertaining and amusing to read. Marie Cocco of the Washington Post graciously provides us the intellectual stimulation we need this morning...

I do agree with her on the original intention of unions:

Creating a viable middle class has been the goal of organized labor since labor first became organized. And it is this goal that was abandoned outright by American political and business leaders as they did all they could over the past three decades to encourage a relentless race to the bottom in wages and benefits.

So what happened? Like many organizations, unions became powerful and its leaders turned into mob bosses with influence over politicians and businessmen. And when one is sitting at the top with so much power, more than likely the person wouldn't want to leave and would do anything to remain at the top, including abusing its members.

Also, Cocco doesn't think personal financial responsibility applies to the middle class:

Strip away the financial mumbo jumbo and the credit crisis comes down to this: For decades, as wages and benefits for working and middle-class people stagnated or fell, the only way for them to purchase the goods that make the economy hum was through credit. This was true whether the item purchased was a home, a car -- or all the unnecessary gizmos that retailers have been more than happy to tell consumers were the must-haves of the day. Until we understand that we are in the midst of two crises -- one the short-term credit crisis and one the longer-term crisis in the failure to pay workers what they need to sustain themselves -- we are doomed to repeat this horror.

Why are people buying everything through credit? Cars, furniture, electronics -- everything is financed! My parents raised me to only buy what you have the cash for and try your best to avoid debt. That BMW is a sweet ride, but if I only have the money to buy a used Ford Escort then that's what I'll be driving for a few years. Our economy shouldn't hum on credit. It should hum on cash purchases!

And is she condoning trespass?

This is why we can only hope that events such as the unfolding peaceful occupation of a Chicago window factory by its newly laid-off workers is the start of something much, much bigger.

Laid-off workers returning to work, except it's not work because they are actually disrupting the actual paid workers the company kept. What nonsense is this?! Why aren't they scouring newspapers and researching online to find work instead of wasting time harassing their former employer? Move. On. Please.