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Archive for the ‘Union Bosses’ Category

Perhaps because he wants to divert attention from the slow-motion train wreck of Obamacare, the President is signalling that he will renew his efforts to throw more people into the unemployment line.

Needless to say, that’s not how the White House would describe the President’s proposal to increase the minimum wage, but that’s one of the main results when the government criminalizes certain employment contracts between consenting adults.

To be blunt, if a worker happens to have poor work skills, a less-than-impressive employment record, or some other indicator of low productivity that makes them worth, say, $7.50 per hour, then a $9-per-hour minimum wage is a ticket to the unemployment line.

Which is the point I made in a rather unfriendly interview with Yahoo Finance.

But a higher minimum wage is popular with voters who don’t understand economics, and unions strongly support a higher minimum wage since it means potential competitors are then priced out of the market.

So it’s not exactly a surprise that the White House is siding with unions over lower-skill workers. Here’s some of what is being reported by The Hill.

President Obama might soon renew his push for a $9 minimum wage, a top economic adviser said on Monday. “You’ll certainly be hearing more about it,” Jason Furman, the chairman of the Council of Economic Advisers, told reporters Monday at a Wall Street Journal event. …Obama urged lawmakers during January’s State of the Union address to boost the wage from $7.25 to $9 per hour and index it so that it rises with inflation.

The “indexing” provision would be especially pernicious. In the past, rising overall wage levels have diminished the harmful impact of the minimum wage. But if the minimum wage automatically increases,Minimum Wage Cartoon 2 then the ladder of opportunity may be permanently out of reach for some low-skilled workers.

Walter Williams also has weighed in on this issue, noting specifically the negative impact of higher minimum wages on minorities. Indeed, he cited research showing that, “each 10 percent increase reduces hours worked by 3 percent among white males, 1.7 percent for Hispanic males, and 6.6 percent for black males.”

The bottom line is that businesses aren’t charities. They hire workers when they think more employees will improve the bottom line. So if you artificially increase the price of labor, it’s easy to understand why marginal workers won’t get hired.

For more information on this issue, here’s a video produced by the Center for Freedom and Prosperity.

P.S. I wrote yesterday that the tax-hike referendum in Colorado was the most important battle in the 2013 elections.

Well, I’m delighted to report that Colorado voters are even wiser than Swiss voters. A take-hike referendum in 2010 was defeated in Switzerland by a 58.5-41.5 margin. Colorado voters easily exceeded that margin, rejecting the tax hike in a staggering 66-34 landslide.

Here’s what the Denver newspaper – which liked the tax increase – wrote about the referendum.

The pro-66 side raised more than $10 million that it lavished on advertising, messaging and get-out-the-vote efforts, thanks in part to huge donations from teachers unions, Michael Bloomberg, and Bill and Melinda Gates. Opponents meanwhile had barely the equivalent of a street-corner megaphone at their disposal. And yet Colorado voters, in another display of independence, ignored the prodding in one direction and chose to go their own way. They didn’t merely defeat Amendment 66. They demolished the idea.

In other words, taxpayers were heavily outspent by union bosses and out-of-state billionaires, yet they easily prevailed and Colorado’s flat tax is safe.  At least for now.

P.P.S. I conducted a test this morning on media bias. I’m still in Iceland, so I went to sleep last night long before American election results were announced. When I woke up this morning, I looked first at both the CNN and Washington Post websites. When I didn’t see any results for the Colorado tax referendum, I was 99 percent confident that the statists had lost. Needless to say, it would have been front page news if the referendum was approved.

P.P.P.S. Since I’m adding some comments on Colorado elections, we also should be happy that the pro-school choice members of the Douglas County School Board were all reelected, notwithstanding a big effort by the unions.

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School choice should be a slam-dunk issue. There’s very powerful evidence that we can provide superior education for lower cost if we shift away from monopoly government schools to a system based on parental choice.

Yet some leftists oppose this reform, even though poor and minority kids would be the biggest beneficiaries. Here’s some of what I wrote last year about how the left deals with this issue.

…the school choice issue exposes the dividing line between honest liberals and power-hungry liberals. Regardless of ideology, any decent person will favor reforms that enable poor kids to escape horrible government schools. Lots of liberals are decent people. The ones who oppose school choice, by contrast, are…well, you can fill in the blank.

The Washington Post, to its credit, belongs in the “decent” category. Here’s some of the paper’s editorial on school choice in Louisiana.

Nine of 10 Louisiana children who receive vouchers to attend private schools are black. All are poor and, if not for the state assistance, would be consigned to low-performing or failing schools with little chance of learning the skills they will need to succeed as adults. So it’s bewildering, if not downright perverse, for the Obama administration to use the banner of civil rights to bring a misguided suit that would block these disadvantaged students from getting the better educational opportunities they are due.

The editorial eviscerates the nonsensical data that the Obama Administration is using as it puts the interests of powerful teacher unions above the needs of disadvantaged children.

The government argues that allowing students to leave their public schools for vouchered private schools threatens to disrupt the desegregation of school systems. …Since most of the students using vouchers are black, it is, as State Education Superintendent John White pointed out to the New Orleans Times-Picayune, “a little ridiculous” to argue that the departure of mostly black students to voucher schools would make their home school systems less white. …The government’s argument that “the loss of students through the voucher program reversed much of the progress made toward integration” becomes even more absurd upon examination of the cases it cited in its petition. …a school that lost five white students through vouchers and saw a shift in racial composition from 29.6 percent white to 28.9 percent white. Another school that lost six black students and saw a change in racial composition from 30.1 percent black to 29.2 percent black. “Though the students . . . almost certainly would not have noticed a difference, the racial bean counters at the DOJ see worsening segregation,”… The number that should matter to federal officials is this: Roughly 86 percent of students in the voucher program came from schools that were rated D or F. Mr. White called ironic using rules to fight racism to keep students in failing schools; we think it appalling.

Not only appalling, but also hypocritical. The President is sending his children to an ultra-expensive private school, but doesn’t want poor families to have any choice to get a good education.

Unfortunately, though, it is not a surprise from an administration that…has proven to be hostile — as witnessed by its petty machinations against D.C.’s voucher program — to the school choice afforded by private-school vouchers. …Louisiana parents are clamoring for the choice afforded by this program; the state is insisting on accountability; poor students are benefiting. The federal government should get out of the way.

Kudos to the Washington Post for urging a withdrawal of federal intervention. Now if we can get the Post to apply the same federalism lesson to Medicaid, transportation, and other issues, we’ll be making real progress.

For more information on the overall issue of school choice, I strongly recommend this video from the Center for Freedom and Prosperity Foundation.

By the way, don’t believe propaganda from politicians and union bosses about “underfunded” schools. The United States spends more per capita than any other country.

This isn’t an issue of money. The problem is that monopolies don’t deliver good results. Particularly monopolies controlled by self-serving union bosses that use political muscle to protect undeserved privileges.

P.S. Not surprisingly, Thomas Sowell nails this issue, as does Walter Williams, with both criticizing the President for sacrificing the interests of minority children to protect the monopoly privileges of teacher unions.

P.P.S. Chile has reformed its education system with vouchers, as have Sweden and the Netherlands, and all those nations are getting good results.

P.P.P.S. There are some other honest and sincere liberals on this issue.

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I was very critical of the General Motors bailout since it largely was designed to give undeserved special benefits to the UAW union. I’m also very down of teacher unions because they sabotage reforms that would help poor children trapped in failed government schools.

And I’m definitely opposed to the excessive pay and benefits that politicians grant to bureaucrats in exchange for votes and money from government employee unions (as cleverly depicted in this great Michael Ramirez cartoon).

So why, then, do I have mixed feelings about the recently enacted right-to-work law in Michigan?

Here’s some of what I wrote almost 25 years ago for the Villanova Law Review, beginning with my general philosophy on the role of government in labor markets.

…government should not interfere with certain personal decisions, including the freedom of employers and employees to contract freely, unfettered by labor regulations. …My position is one of strict neutrality. The government should not take side in employer-employee issues. …this is a question of property rights. If another person owns a business, I do not have a right to interfere with his choices as to what he does with his property – so long as he does not interfere with my rights of life, liberty, and property.

That’s all fine and well. Standard libertarian boilerplate, one might even say, and I’ve certainly expressed these views on television (see here, here, and here).

But then I explore some implications. If you believe in a system based on property rights and private contracts, then right-to-work laws are an unjust form of intervention.

…a property rights perspective also would reject so-called right-to-work laws which infringe upon the employers’ freedom of contract to hire only union members which is something employers may wish to do since it can lower transactions costs. …Some would argue that nobody should be forced to join a union as a condition of employment. The relevant issue in this instance, however, is not whether one can be forced to join a union, because a person cannot; if he does not like the union, he can refuse the job. The real issue is whether a business and its employees should have the freedom to choose to sign contracts which have union membership as a condition of employment.

All that being said, I’m glad Michigan just enacted a right-to-work law. I know it’s not ideal policy, but my rationale is that most government labor laws (such as the National Labor Relations Act and the Norris–La Guardia Act) tilt the playing field in favor of unions.

So until that glorious day when we get government out of labor markets, I view right-to-work laws as a second-best alternative. They’re a form of intervention that partially compensates for other forms of intervention.

A good analogy is that I don’t like tax loopholes, but I like the fact that they enable people to keep more of the money they earn. The ideal system, of course, would be a simple and fair flat tax. But in the absence of real reform, I don’t want politicians to get rid of preferences if it means they get more of our money to waste. Deductions should only be eliminated if they use every penny of additional revenue to lower tax rates.

Returning to what happened in Michigan, let’s close with an amusing cartoon that mocks Obama’s dismal record on jobs.

Cartoon Right to Work

P.S. Since I’ve written something that might appeal to union bosses, I feel the need to compensate. So feel free to enjoy some good cartoons mocking unionized bureaucrats by clicking here, here, here, and here.

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As a general rule, I’m completely neutral about private-sector unions. As I argued in this interview, the federal government should not take sides or tilt the playing field when unions and management squabble.

I have a more skeptical view of unionized bureaucrats, though, because politicians (acting as “management”) have no incentive to be frugal since they’re spending our money and there’s no competitive pressure to be efficient.

Which is why this cartoon is the best summary of “negotiations” between politicians and union bosses, and this video is damning proof that bureaucrats are wildly over-compensated.

So it’s no surprise that I’m unsympathetic to the striking teachers in Chicago. They earn more money than the taxpayers of the city, yet they do a terrible job of educating students.

Here are some good cartoons, beginning with a gem from Michael Ramirez.

You can see some of my favorite Ramirez cartoons here, here, here, here, here, here, here, here, here, herehereherehereherehere, and here.

Here’s another cartoon. Instead of mocking teachers for doing a crummy job, it zings them for insatiable greed (similar to this cartoon).

Lisa Benson did this cartoon, and you can review some of her best work herehereherehereherehere,here, herehere, and here.

Last but not least, I’m not even sure what we’re supposed to learn from this cartoon. But it implies thuggish tactics in Chicago, so let’s add it to the list.

Sort of reminds me of this cartoon about Wisconsin.

The best outcome of the strike, by the way, is to junk the government education monopoly and implement a sweeping school choice program.  Chile has reformed its education system with vouchers, as have Sweden and the Netherlands. So why shouldn’t kids in Chicago get the same opportunity?

The answer, of course, is that there’s a corrupt and symbiotic relationship between unions and local politicians. The kids are nothing more than collateral damage.

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While I often complain about government waste and stupidity, I’m not even sure what to say about this grim bit of news from Reuters.

General Motors Co sold a record number of Chevrolet Volt sedans in August — but that probably isn’t a good thing for the automaker’s bottom line. Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds, according to estimates provided to Reuters by industry analysts and manufacturing experts. Cheap Volt lease offers meant to drive more customers to Chevy showrooms this summer may have pushed that loss even higher. There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce. …The weak sales are forcing GM to idle the Detroit-Hamtramck assembly plant that makes the Chevrolet Volt for four weeks from September 17, according to plant suppliers and union sources. It is the second time GM has had to call a Volt production halt this year. GM acknowledges the Volt continues to lose money, and suggests it might not reach break even until the next-generation model is launched in about three years.

Gee, it’s almost as if everything that critics have said all along is right.

But not to worry, taxpayers are underwriting the costs. So if bigger subsidies are the price of buying support from the UAW and allowing fat-cat incompetent managers to stay on the job, that just means a bigger tab to pay for the rest of us.

How comforting.

P.S. If you’re a taxpayer and need to be cheered up, these cartoons may help.

P.P.S. This spoof video on the Volt may be even funnier.

P.P.P.S. Last but not least, Government Motors plans to build on the success of the Volt with the Obummer. It was due in 2011, but standard government incompetence has pushed back the release date.

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I’ve criticized union bosses for fighting school reform, and I’ve condemned the so-called civil rights establishment for opposing school choice.

And here’s a powerful video from Reason TV that combines those themes, noting the unholy alliance of teacher unions and the NAACP.

The spiritual leader of the teacher unions?

Fortunately, the statists seem to be losing this issue. Louisiana recently adopted school choice legislation that will give poor children an opportunity to escape failing government schools.

But the left isn’t losing gracefully. In a move that would make George Wallace proud, they are threatening schools that will participate in the new program.

Here’s some powerful criticism of their sleazy tactics from today’s Wall Street Journal.

In some parts of the antebellum South, it was illegal to teach blacks how to read. Are teachers unions in Louisiana trying to turn back the clock? Last week, lawyers for the Louisiana Association of Educators, one of the state’s two major teachers unions, threatened private and parochial schools with lawsuits if the schools accept students participating in a new school choice initiative that starts this year. Education reforms signed into law in April by Governor Bobby Jindal include a publicly funded voucher program that allows low-income families to send their children to private or parochial schools. …lawyers representing the unions faxed letters to about 100 of the 119 schools that are participating in the voucher program. “Our clients have directed us to take whatever means necessary,” the letter reads. Unless the school agrees to turn away voucher students, “we will have no alternative other than to institute litigation.” The letter demanded an answer in writing by the next day. Louisiana’s voucher program is adjusted for family income and is intended above all to give a shot at a decent education to underprivileged minorities, who are more likely to be relegated to the worst public schools. …Demand for vouchers has been overwhelming: There were 10,300 applications for 5,600 slots. Despite claims to the contrary by school-choice opponents, low-income parents can and do act rationally when it comes to the education of their children. State officials have rightly slammed the union’s tactics. A spokesman for the Governor said in a statement that union leaders are “stooping to new lows and trying to strong-arm schools to keep our kids from getting a quality education.” State Superintendent John White said it was “shameful” that the unions were “trying to prevent people from doing what’s right for their children.” The unions claim that vouchers don’t benefit students, but we know from school-choice programs in Washington, D.C., and elsewhere that voucher recipients attend safer schools and enjoy higher graduation rates than their peers in public schools.

As I note in this post (featuring a great column by Jeff Jacoby), I’ve always believed that the school choice issue exposes the dividing line between honest liberals and power-hungry liberals.

Regardless of ideology, any decent person will favor reforms that enable poor kids to escape horrible government schools. Lots of liberals are decent people. The ones who oppose school choice, by contrast, are…well, you can fill in the blank.

P.S. Here’s some wisdom on the issue of school choice from a former University of Georgia quarterback.

P.P.S. Not surprisingly, Thomas Sowell nails the issue, as does Walter Williams, with both criticizing the President for sacrificing the interests of minority children to protect the monopoly privileges of teacher unions.

P.P.P.S. Chile has reformed its education system with vouchers, as have Sweden and the Netherlands, and all those nations are getting good results.

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If there was a contest for the best political cartoon about what’s been happening in Wisconsin, I would pick either this “fake negotiation” cartoon by Ramirez or this “coach class” cartoon by Payne.

But here’s a new entry from Bok that also deserves some consideration.

If you like humor about the Wisconsin fight, check out this Hitler parody about the recall.

And if you enjoy humor about overpaid government employees, regardless of where they’re located, here’s a great top-10 list from Letterman and here’s a cartoon about the relationship of bureaucrats and taxpayers.

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Since I’m a policy wonk and not a political prognosticator, I’m not sure why people keep asking me what will happen in the November elections. But since I got lucky with my 2010 predictions, I may as well throw in my two cents.

The election is now exactly five months away, so here’s my first cut at what will happen.

At this point, I am predicting an Obama victory, albeit by a much narrower margin than in 2008.

Given the weak economy and unpopularity of Obamacare, one might think Romney should be the favorite. However, the establishment media is completely in the tank for Obama and Romney is not exactly the strongest candidate, and I think those factors will tip the scales in November.

That being said, Obama has dropped from being a 60 percent-plus favorite on Intrade to just a 52.3 percent favorite in recent weeks, so GOP partisans have reasons to be hopeful.

Since all I care about is policy, I confess I’m not sure whether to be happy about my prediction. It all boils down to whether the “Richard Nixon Disinfectant Rule” applies to Romney. As of right now, we don’t know the answer. Here’s what I told ABC News earlier this week.

“The negative spin is that he’s said all these things to basically get past a conservative-leaning Republican Party electorate and that he’s really the Massachusetts moderate that some of his opponents tried to make him out to be,” said Dan Mitchell, a Cato economist… The flip side, Mitchell said, is that if Romney does stick to his promises to conservatives, they’ll be pleased when he gives support to Paul Ryan’s budget, takes steps to lower the spending-to-GDP ratio significantly, and offers states flexibility on spending Medicaid money.

We’ll have plenty of time between today and November 6 to analyze the presidential election, so let’s leave the national stage and take a look at what happened yesterday in Wisconsin and California.

We’ll start with California, because there were two very important – but largely overlooked – votes in San Diego and San Jose about curtailing lavish pensions for bureaucrats. The results were shocking, particularly since California is a left-wing state. Here’s part of the AP report.

Voters in two major California cities overwhelmingly approved cuts to retirement benefits for city workers in what supporters said was a mandate that may lead to similar ballot initiatives in other states and cities that are struggling with mounting pension obligations. Supporters had a simple message to voters in San Diego and San Jose: Pensions for city workers are unaffordable and more generous than many private companies offer… In San Diego, 66 percent voted in favor of Proposition B, while 34 percent were opposed. Nearly 97 percent of precincts were tallied by early Wednesday. The landslide was even bigger in San Jose, the nation’s 10th-largest city. With all precincts counted, 70 percent were in favor of Measure B and 30 percent were opposed.

Since I’ve written repeatedly about excessive compensation for government employees, these results are encouraging. Perhaps the gravy train has finally been derailed

Yesterday’s big election, though, was in Wisconsin. Republicans took control of the state in 2010 and enacted laws to restrain the power of union bureaucracies, which led to a counterattack by the left. First, there was a recall effort against Republicans in the State Senate and that failed. Then there was a recall against one of the GOP judges on the state’s Supreme Court, and that failed.

The climactic battle yesterday was to recall Governor Scott Walker. So how did that turn out? Let’s enjoy these excerpts from the Washington Post.

Wisconsin Gov. Scott Walker won a vote to keep his job on Tuesday, surviving a recall effort that turned the Republican into a conservative icon…That made Walker the first governor in U.S. history to survive a recall election; two others had failed. …the night provided a huge boost for Walker — as well as Republicans in Washington and state capitals who have embraced the same energetic, austere brand of fiscal conservatism as a solution for recession and debt. In a state known for a strong progressive tradition, Walker defended his policies against the full force of the labor movement and the modern left. And he won, again.

By the way, the final result in the Badger State was 53 percent-46 percent and I predicted 54 percent-46 percent, so I somewhat atoned for my awful guess on the Iowa caucuses.

P.S. This cartoon accurately shows what was at stake in Wisconsin.

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Government bureaucrats are significantly overpaid compared to folks in the productive sector of the economy.

So you would think I’d support cuts, especially the kind that get rid of excess blubber in the government workforce.

But not when it means higher costs for taxpayers, and that’s exactly what’s happening in New York, where Buffalo taxpayers cough up more money every time some bureaucrat goes under the knife for cosmetic procedures such as liposuction.

Here are some excerpts from a report in the UK-based Daily Mail.

Teachers in Buffalo are getting plastic surgery on the tax payer’s buck, it has been revealed. Tummy tucks, liposuction and Botox are all part of the controversial one of a kind health plan. …it is a perk that comes with a price tag. Last year Buffalo schools paid $5.9 million for its teachers to have plastic surgery. In 2010 the figure was up at $9 million. …60 teachers spent $30,000 each on procedures in 2011, an investigation by the school board revealed, and because the schools are self-insured, tax payers foot the bill. …The policy to pay for teachers to have surgery started out innocently enough – it was intended for accident and burns victims in need of reconstructive surgery. But in the age of cosmetic surgery the rider extends to arm lifts, face lifts and breast enhancements, with surgeons advertising their services in the teacher’s union newsletter.

Wow. It’s bad enough that government workers get excessive salaries and gold-plated benefits. But this takes it to a new level.

At least we see an example of economics in action. How likely is it that plastic surgeons would be advertising in the union’s newsletter in the absence of taxpayer financing?

P.S. Here’s David Letterman’s top-10 list of how to tell you’re a unionized government bureaucrat. Liposuction isn’t on the list, but wait ’til next year.

P.P.S. Just in case you think I’m exaggerating about overpaid government employees, take a look at this map showing 10 of the 15 richest counties in America.

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Utterly despicable.

But this is an understatement, an entirely inadequate phrase to capture my feelings about how the NAACP and the teachers’ union have joined forces to undermine educational opportunities for minority children.

There are honest left-wingers, who are misguided but genuinely wish to make America a better place. But that’s definitely not the right way to describe people who put the narrow interests of teacher unions ahead of helping disadvantaged kids.

This new video from Reason TV has the sordid details.

Both Thomas Sowell and Walter Williams have very appropriate comments on this issue.

And this video looks at the broader issue of school choice.

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To be blunt, I’m not a big fan of the Organization for Economic Cooperation and Development. But my animosity isn’t because OECD bureaucrats threatened to have me arrested and thrown in a Mexican jail.

Instead, I don’t like the Paris-based bureaucracy because it pushes a statist agenda of bigger government. This Center for Freedom and Prosperity study has all the gory details, revealing that OECD bureaucrats endorsed Obamacare, supported the failed stimulus, and are big advocates of a value-added tax for America.

And I am very upset that the OECD gets a giant $100 million-plus subsidy every year from American taxpayers. For all intents and purposes, we’re paying for a bunch of left-wing bureaucrats so they can recommend that the United States adopt that policies that have caused so much misery in Europe. And to add insult to injury, these socialist pencil pushers receive tax-free salaries.

And now, just when you thought things couldn’t get worse, the OECD has opened a new front in its battle against America. The bureaucrats from Paris have climbed into bed with the hard left at the AFL-CIO and are pushing a class-warfare agenda. Next Wednesday, the two organizations will be at the union’s headquarters for a panel on “Divided We Stand – Tackling Growing Inequality Now.”

Co-sponsoring a panel at the AFL-CIO’s offices, it should be noted, doesn’t necessarily make an organization guilty of left-wing activism and mis-use of American tax dollars. But when you look at other information on the OECD’s website, it quickly becomes apparent that the Paris-based bureaucracy has launched a new project to promote class-warfare.

For instance, the OECD’s corruption-tainted Secretary-General spoke at the release of a new report on inequality and was favorable not only to higher income tax rates, but also expressed support for punitive and destructive wealth taxes.

Over the last two decades, there was a move away from highly progressive income tax rates and net wealth taxes in many countries. As top earners now have a greater capacity to pay taxes than before, some governments are re-examining their tax systems to ensure that wealthier individuals contribute their fair share of the tax burden. This aim can be achieved in several different ways. They include not only the possibility of raising marginal tax rates on the rich but also…reassessing the role of taxes on all forms of property and wealth.

And here’s some of what the OECD stated in its press release on income differences.

The OECD underlines the need for governments to review their tax systems to ensure that wealthier individuals contribute their fair share of the tax burden. This can be achieved by raising marginal tax rates on the rich.

Like Obama, the folks at the OECD like to talk about “fair share.” These passages sounds like they could have been taken from one of Obama’s hate-and-envy speeches on class warfare.

But the fact that a bunch of Europeans support Obama’s efforts to Europeanize America is not a surprise. The point of this post is that the OECD shouldn’t be using American tax dollars to promote Obama’s class-warfare agenda.

Here’s a video showing some of the other assaults against free markets by the OECD. This is why I’ve written that the $100 million-plus that American taxpayers send to Paris may be – on a per dollar basis – the most destructively wasteful part of the entire federal budget.

One last point is that the video was produced more than one year ago, which was not only before this new class-warfare campaign, but also before the OECD began promoting a global tax organization designed to undermine national sovereignty and promote higher taxes and bigger government.

In other words, the OECD is far more destructive and pernicious than you think.

And remember, all this is happening thanks to your tax dollars being sent to Paris to subsidize these anti-capitalism statists.

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I’ll start with an important caveat and state that Ford is far from a perfect company. It has its snout in the trough for boondoggles such as green energy programs. And it happily benefits from protectionist restrictions on foreign pickup trucks and SUVs.

That having been said, there is an enormous difference between Ford, which did not get bailout cash, and the moochers and looters at GM and Chrysler. Which is why I said on TV last year that all ethical people should boycott the latter two companies.

And I’m very proud that other Americans feel the same way. Here are some excerpts from a story in the UK-based Daily Mail.

The Rasmussen Poll asked likely voters: “Have You or Anyone in Family Bought Car from Ford Because Didn’t Take Government Bailout?” 19% said yes, including 33% of the people 18-29 — and 28% of black voters — and 32% of government workers. …25% said yes when asked “Has Bailout and Government Takeover of GM Caused You or Anyone You Know to Avoid Buying GM Car?” …Rasmussen also asked: “Does Fact that GM Took Bailout Money Make You More/Less Likely to Buy GM Car?” 50% said less likely — just 4% said more likely. To the question “Ford Didn’t Take Bailout Funding. Make You More/Less Likely to Buy from Ford?” — 51% said more likely and 12% said less likely.

Here is an ad that Ford apparently is not using anymore because of pressure from the Obama Administration. But please share this link so more people can see it. Kudos to Chris, a patriot in the finest sense.

By the way, some statists are arguing that the bailouts are a success because GM and Chrysler are still alive. But as I’ve explained before, any money-losing entity can be kept alive in perpetuity (or at least ’til the point of Greek-style collapse) by raping and pillaging taxpayers.

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School choice doesn’t automatically mean every child will be an educational success, but evidence from other nations certainly suggests it means better overall performance. Sweden, Chile, and the Netherlands are just some of the countries that have seen good results after breaking up state-run education monopolies.

The same is true in the United States. When parents have some ability to select schools, this generates competitive pressure for better results. This is true even in sub-optimal instances where the choice is merely among different government-run schools. as illustrated by the abstract of a new study from the National Bureau of Economic Research.

We study the impact of a public school choice lottery in Charlotte-Mecklenburg (CMS) on postsecondary attainment. We match CMS administrative records to the National Student Clearinghouse (NSC), a nationwide database of college enrollment. Among applicants with low-quality neighborhood schools, lottery winners are more likely than lottery losers to graduate from high school, attend a four-year college, and earn a bachelor’s degree. They are twice as likely to earn a degree from an elite university. The results suggest that school choice can improve students’ longer-term life chances when they gain access to schools that are better on observed dimensions of quality.

But real competition should involve private schools. Here’s the video from last year about why comprehensive school choice is good news for education.

School choice is one of the few issues where I’m optimistic. If we’re beginning to make progress even in places such as California and New Orleans, we’re obviously winning. No wonder the teacher unions are sounding so shrill.

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Labor Day is a good opportunity to consider whether unions help or hurt ordinary workers in America.

The answer is yes and no, depending on circumstances, but that’s actually the wrong question. The real issue, at least from a public policy perspective, is whether government should be a neutral referee in labor matters.

The union bosses reject that approach. They want the government to tilt the playing field, which is why the Obama Administration is using the National Labor Relations Board to promote the interests of Big Labor.

In this short interview on Larry Kudlow’s CNBC show, I argue that government should not have a thumb on the scale.

To elaborate, here’s what I wrote last year about labor unions and the role of government.

In a free society, people obviously should be free to join unions and companies should be free to negotiate with unions. But that also means that companies should be free to resist union demands and hire non-union workers. There is no right or wrong in these battles, just as there is no right or wrong when McDonald’s decides to sell french fries for a particular price. The market will reward good decisions and penalize bad choices. The only appropriate role for policy in this area is to enforce contracts and protect public safety.

I then make what should be an obvious point about what happens if unions use the coercive power of government to push wages – when adjusted for productivity – above a competitive level.

…above-market wages (at least in the private sector) are not sustainable in the long run. Workers ultimately get paid on the basis of what they produce and if it costs $25 per hour to employ a worker and that worker produces $23 per hour of output, that ultimately is a recipe for unemployment. A good example is the American auto industry, which has declined in part because of a compensation system that is not matched by productivity. This does not necessarily mean that wages are too high. It could mean that productivity is too low. Some of that, to be sure, is the fault of government policies such as a corporate tax system that penalizes investment (thus making it more difficult for workers to boost productivity). But unions also have used their government-granted power to insist on absurd workforce practices.

The important point in that passage is that unions may be hurting workers, not with demands for unsustainable wages, but instead by imposing work rules that undermine productivity.

That’s an empirical issue, to be sure. But here’s the bottom line. Government favoritism may help workers in the short run by temporarily pushing wages higher, but may hurt them in the long run by making companies – or, as I mentioned in the Kudlow interview, entire industries – uncompetitive.

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My Cato colleague, Mark Calabria, recently explained how the minimum wage destroys jobs, and I’ve written on several occasions why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work histories. And I’ve attacked Republicans for going along with these job-killing policies, and also pointed out the racist impact of such intervention.

But this cartoon may be a more effective argument for getting government out of the business of interfering with market forces. It’s simple, direct, and gets the point across. I’m not sure that always happens with my writing.

My former intern, Orphe Divougny, also did a very good job in explaining why politicians shouldn’t interfere with the right of workers and employers to enter into labor contracts.

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The libertarian position is that government should be totally neutral whenever there is a conflict between labor and management.

Unfortunately, politicians usually tilt the playing field in favor of unions, largely in response to big campaign contributions.

This issue has been in the news because of the Obama Administration’s thuggish move to block Boeing from building a factory in South Carolina, so this is a good time to post this debate I had with one of the guys at the Brookings Institution.

The fight in Wisconsin was the starting point for the discussion, and if you’ve been following that debate, you’ll very much enjoy this cartoon.

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I’ve written before about how I get especially upset when rich people use the coercive power of government to screw poor people. There’s an equally offensive corollary to this principle, and that’s when powerful people use big government to impose hardship on helpless people.

And that’s exactly what’s happening in New York City, where the NAACP is siding with the teachers union to deny black children a chance to escape failing government schools. I genuinely wonder how people like that live with themselves. Do they ever feel shame or guilt? Do they have trouble sleeping at night? When they use their comfortable incomes to buy luxuries, do they feel a twinge of unease that they support policies that will make it much harder for others to enjoy a better life?

Here are the key passages from the Wall Street Journal’s editorial on the issue.

Thousands of American blacks held a rally in Harlem last week to protest . . . the NAACP. The New York state chapter of the civil rights organization and the United Federation of Teachers, the local teachers union, have filed a lawsuit to stop the city from closing 22 of Gotham’s worst schools. The lawsuit also aims to block the city from giving charter schools space to operate in buildings occupied by traditional public schools. Protesters at the rally, which included parents and charter school operators like Geoffrey Canada of the Harlem Children’s Zone, urged the NAACP to withdraw from the suit. …The teachers union wants to keep these abysmal schools open to preserve jobs for their members. This is bad enough. But the union and NAACP also want to limit better educational options for low-income families who can’t afford private schools and can’t afford to move to an affluent neighborhood with decent public schools. The union knows that in a place like New York City, where space is at a premium, blocking charters from operating in public buildings will hamper charter growth. If the lawsuit succeeds, the awful schools will remain open to damage another generation of children. If you want to know why the NAACP has become irrelevant to the lives of African-Americans, this typical display of moral indifference to the plight of minority children is Exhibit A.

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I’ve written several times about the major fight in Wisconsin to control excessive compensation for government bureaucrats. Governor Walker basically won the first battle in that important and necessary campaign, but Yogi Berra sagely explained that “the opera ain’t over ’til the fat lady sings.”

In this case, the proverbial fat lady is yesterday’s election for Wisconsin’s Supreme Court. Leftists control three of the seven seats on the Court and were hoping to use the fight over bureaucrat compensation as a trigger to pick up a critical fourth vote. Here’s how today’s Milwaukee Journal describes what was at stake.

Interest groups on both sides had portrayed the election as a referendum on Gov. Scott Walker’s agenda and particularly on the collective bargaining law. Conservatives backed Prosser, and liberals supported Kloppenburg, even though the candidates themselves insisted they were politically neutral.

The election is critical, not just in terms of whether the Wisconsin reforms could be blocked by an ideologically motivated state Supreme Court, but also because the election has been closely watched by political activists in other states.

Simply stated, the winning side will gain lots of momentum. Unions poured lots of money and muscle into the race. They want to send a signal to lawmakers around the nation that any effort to control compensation costs will result in a political backlash.

At this stage, you’re probably saying, “enough blather, Dan, tell us who won!” Unfortunately, I can’t answer that question. Here’s the screen capture of the latest results from the Milwaukee newspaper. As of this moment, the union-backed candidate is trailing by a very tiny margin.

We’ll find out later today (hopefully!) who won the race, but I feel much better than I did last night. When I went to sleep, Kloppenburg had a lead of 18,000 votes and it appeared things were trending in her direction.

P.S. This election comes very close to debunking my cranky post from last year saying that voting was theoretically a waste of time since no single vote would ever decide an election.

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A dedicated union official from the National Education Association was attending a convention in Las Vegas and decided to check out the local brothels.

When he got to the first one, he asked the Madam, “Is this a union house?”

“No,” she replied, “I’m sorry it isn’t.”

“Well, if I pay you $100, what cut do the girls get?”

“The house gets $80 and the girls get $20,” she answered.

Offended at such unfair dealings, the NEA man stomped off down the street in search of a more equitable, hopefully unionized shop.

His search continued until finally he reached a brothel where the Madam responded, “Why yes sir, this is a union house. We observe all union rules.”

The man asked, “And, if I pay you $100, what cut do the girls get?”

“The girls get $80 and the house gets $20.”

“That’s more like it!” the union man said.

He handed the Madam $100, looked around the room, and pointed to a stunningly attractive green-eyed blonde.

“I’d like her,” he said.

“I’m sure you would, sir,” said the Madam.  Then she gestured to a 92-year old woman in the corner, “but Ethel here has 67 years seniority and according to union rules, she’s next.”

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This great cartoon I saw at The Corner is a very good summary of what the public-sector “collective bargaining” issue is all about.

In private sector labor disputes, unions and management both have ample incentives to protect their respective interests.

With government labor negotiations, by contrast, that natural system of checks and balances doesn’t exist. There’s no strong incentive for politicians to be frugal stewards of taxpayer money – particularly when they negotiate very expensive fringe benefits that defer costs to future years.

Indeed, because government employee unions tend to be very politically active, often being huge contributors to political campaigns, politicians often have a strong incentive to be profligate with taxpayer money.

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Appearing on Bloomberg TV, I debate the role of unions in American society.

My first point, regarding labor issues in the productive sector of the economy, is that the government should not intervene on the side of either unions or management. Personally, I think unions are sometimes so inflexible and intransigent that they kill the geese (profits) that generate golden eggs (jobs). But I don’t want my thumb on the scale, just as I don’t want Barack Obama’s thumb on the scale.

My second point is the public sector unions are an entirely different issue, involving a special interest group that colludes with politicians to screw taxpayers.

As always, would welcome feedback on how I can improve. You’ll have to click through to watch the video on the youtube site (at least that’s how it works on my computer).

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Kudos to Governor Walker of Wisconsin. Republicans rarely have the intelligence or the fortitude to win battles that reduce the burden of government, but it appears that he is on the verge of prevailing in his effort to limit special privileges for government workers. Fugitive Democrats from the State Senate apparently are giving up on their plan to block the Governor’s reforms by hiding in Illinois.

I won’t fully believe it until they’re back in their chairs and casting votes, but at the very least Governor Walker is showing why it is important to stand up to greedy special interests. Let’s hope Republicans in Washington can display the same courage in their fight to trim a tiny amount of spending from this year’s spending – even if it means a government shutdown.

Here’s a report on the Wisconsin fight from today’s Wall Street Journal.

Playing a game of political chicken, Democratic senators who fled Wisconsin to stymie restrictions on public-employee unions said Sunday they planned to come back from exile soon, betting that even though their return will allow the bill to pass, the curbs are so unpopular they’ll taint the state’s Republican governor and legislators. …The Wisconsin standoff, which drew thousands of demonstrators to occupy the capitol in Madison for days at a time, has come to highlight efforts in other states to address budget problems in part by limiting the powers and benefits accorded public-sector unions. Sen. Mark Miller said he and his fellow Democrats intend to let the full Senate vote on Gov. Scott Walker’s “budget-repair” bill, which includes the proposed limits on public unions’ collective-bargaining rights. The bill, which had been blocked because the missing Democrats were needed for the Senate to have enough members present to vote on it, is expected to pass the Republican-controlled chamber. He said he thinks recent polls showing voter discontent with Mr. Walker over limits on bargaining rights have been “disastrous” for the governor and Republicans and give Democrats more leverage to seek changes in a broader two-year budget bill Mr. Walker proposed Tuesday. …Mr. Walker’s bill would prohibit bargaining over health care and pensions for about 170,000 public employees in the state and would allow public employees to opt out of paying dues or belonging to a union. The bill also would end the automatic collection of dues by the state, and require that every public-employee union get recertified to represent workers through an annual election. …Mark Jefferson, head of the Wisconsin GOP, said…even after Mr. Walker’s plan is passed, the state’s public workers will still have more collective-bargaining rights than most federal workers, who can bargain over working conditions but not pay and benefits.

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This is one of those a-picture-says-a-thousand-words moments.

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The showdown in Wisconsin has generated competing claims about whether state and local government bureaucrats are paid too much or paid too little compared to their private sector counterparts.

The data on total compensation clearly show a big advantage for state and local bureaucrats, largely because of lavish benefits (which is the problem that  Governor Walker in Wisconsin is trying to fix). But the government unions argue that any advantage they receive disappears after the data is adjusted for factors such as education.

This is a fair point, so we need to find some objective measure that neutralizes all the possible differences. Fortunately, the Bureau of Labor Statistics has a Job Openings and Labor Turnover Survey, and this “JOLTS” data includes a measure of how often workers voluntarily leave job, and we can examine this data for different parts of the workforce.

Every labor economist, right or left, will agree that higher “quit rates” are much more likely in sectors that are underpaid and lower levels are much more likely in sectors where compensation is generous.

Not surprisingly, this data shows state and local bureaucrats are living on Easy Street. As the chart illustrates, private sector workers are more than three times as likely to quit their jobs.

This helps explain why the unions are treating the Wisconsin debate as if it was Custer’s Last Stand. The bureaucrats know they have comfortable sinecures and they are fighting to preserve their unfair privileges.

The only bit of semi-good news for Wisconsin taxpayers is that state and local bureaucrats are not as lavishly over-compensated as federal bureaucrats.

This Center for Freedom and Prosperity video looks at all of the data and reveals a pecking order. Federal bureaucrats are at the kings and queens of compensation. State and local bureaucrats are like the nobility. And private sector taxpayers are the serfs that worker harder and earn less, but nonetheless finance the entire racket.

The video closes with a very important point that the right pay level for many bureaucrats is zero. This is because they work for programs, departments, and agencies that should not exist.

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After dozens of posts about overpaid government employees, I’m sick of writing about the topic. But what’s happening in Wisconsin is critically important in the fight for long-run fiscal sanity, so I’m reluctantly wading back into this fight. Simply stated, bureaucrats have figured out how to manipulate the system and they are bankrupting state and local governments.

Chris Christie is the first governor in a long time to stand up to these thugs and now the new chief executive of Wisconsin, Scott Walker, has joined the fight. But unlike Christie, who must deal with a hostile state legislature, Governor Walker has a GOP-controlled Assembly and Senate. As such, he has a chance to take much bigger steps in the right direction.

The unions realize that their special privileges may disappear and they are engaged in a vicious fight to block reform. Other groups that get money and/or political support from the unions also are joining the battle against Wisconsin’s taxpayers. John Fund of the Wall Street Journal provides the key details.

Mr. Walker’s proposals are hardly revolutionary. Facing a $137 million budget deficit, he has decided to try to avoid laying off 5,500 state workers by proposing that they contribute 5.8% of their income towards their pensions and 12.6% towards health insurance. That’s roughly the national average for public pension payments, and it is less than half the national average of what government workers contribute to health care. Mr. Walker also wants to limit the power of public-employee unions to negotiate contracts and work rules—something that 24 states already limit or ban. …Democratic reactions to these proposals have been over the top. In addition to the thousands of protesters who descended on the Capitol building on Thursday to intimidate legislators, so many teachers called in sick on Friday that school districts in Milwaukee, Madison and Janesville had to close. …Why are national liberal groups treating Wisconsin as if it were their last stand? Partly for reasons of symbolism. Historically, Wisconsin “embraced the organized labor movement more heartily than any other [state],” notes liberal activist Abe Sauer. …Labor historian Fred Siegel offers further reasons why unions are manning the barricades. Mr. Walker would require that public-employee unions be recertified annually by a majority vote of all their members, not merely by a majority of those that choose to cast ballots. In addition, he would end the government’s practice of automatically deducting union dues from employee paychecks. For Wisconsin teachers, union dues total between $700 and $1,000 a year. “Ending dues deductions breaks the political cycle in which government collects dues, gives them to the unions, who then use the dues to back their favorite candidates and also lobby for bigger government and more pay and benefits,” Mr. Siegel told me.

Just in case you’re wondering why unions are being so intransigent, Instpundit has a link to a website explaining that state bureaucrats get twice as much compensation as the tax-paying serfs in Wisconsin’s private sector. I can’t vouch for the specific numbers, but I’m sure the gap in the state is enormous, as is the case all across the nation. This video explains.

Let me close with a caveat. There surely are thousands of Wisconsin government employees who disagree with the thuggish tactics and absurd demands of the union bosses. My criticisms obviously don’t apply to those folks, but I would ask them to stand up and be counted. Write op-eds and letters-to-the-editor. Attend today’s Tea Party rally. The union bosses are using your money to do bad things, but you can use your time to do the right thing.

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I’m sick of the TSA and haven’t written about that incompetent bureaucracy since posting a mock press release early last month.

But after enduring the slowest-moving line in recorded history at the Miami Airport yesterday, motivation is no longer a problem.

So it was serendipitous (in a bad way) to see a story in the New York Times indicating that an Obama political appointee is giving union bosses the power to represent TSA bureaucrats.

Seeking to end a debate that has brewed for nearly a decade, the director of the Transportation Security Administration announced on Friday that a union would be allowed to bargain over working conditions on behalf of the nation’s 45,000 airport security officers.

Barring some sort of miracle, this guarantees that airport security will become even more tedious and inefficient in the future. Unions are notorious for creating inflexible working conditions. That’s a big reason why American car companies have lost market share (the second half of this post provides a powerful example), but that’s not something the public directly experiences. Everyone who flies, however, will suffer the consequences of importing UAW-style intransigence into the world of airport security.

Added TSA incompetence might not be completely terrible news if airports had the freedom to choose a better approach. Unfortunately, the Obama Administration also recently decided to prevent additional airports from opting out of the government monopoly and choosing private companies. There are 16 airports using this more efficient approach and many other airports were about to make the switch, but that option no longer exists. Here are some of the depressing details.

TSA Administrator John Pistole also indicated TSA was eliminating the use of private screeners at airports nationwide, except for 16 that already have them in place. “Shortly after beginning as TSA Administrator, I directed a full review of TSA policies with the goal of helping the agency evolve into a more agile, high-performing organization that can meet the security threats of today and the future,” said Pistole. “As part of that review, I examined the contractor screening program and decided not to expand the program beyond the current 16 airports as I do not see any clear or substantial advantage to do so at this time.” …Springfield airport spokesman Kent Boyd said having a private company doing the security screenings gives the airport an opportunity to strengthen its customer service. “While a private company is still under the supervision of TSA, the screeners are employees of a private company,” Boyd said. “If there’s a problem, the airport can go directly to the company to seek a resolution.” He said that process “tends not to happen with the TSA.”

The funniest line in that excerpt, albeit in the form of unintentional humor, was Pistole asserting that a government monopoly system would be “more agile” than private companies. It must have been difficult for him to keep a straight face when uttering something so preposterous.

There’s nothing funny, though, about politicians and bureaucrats undermining the safety and efficiency of flying. Yet that’s the inevitable outcome of these two reprehensible decisions.

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This blog repeatedly has chronicled the huge discrepancy between the gold-plated compensation for government employees and the meager salaries and benefits of people in the productive sector of the economy, including a video conclusively demonstrating that bureaucrats are overpaid.

This message is now resonating all across the nation. Even the New York Times, as shown by the excerpt below, now realizes that taxpayers are sick and tired of paying exorbitant taxes to finance excessive pay for the bureaucracy.

But public awareness is only a small step in the right direction. What really matters is public policy. Will the bureaucracy be downsized? Will salaries be frozen for several years? Will absurd pension plans be replaced by 401(k) systems? And what will happen to unaffordable health plans for government workers?

We’re going to see some interesting battles at the state and local level. One of the many great things about federalism is we get an opportunity to see some governments do the right thing and some do the wrong thing. And as we watch states like California descend into bankruptcy, this teaches everyone about the policies that should be avoided.

But the long-overdue day of reckoning won’t happen if Obama and the other politicians figure out how to bail out reckless state and local governments. That’s already happened once, since funneling federal money to the states was one of main goals of Obama’s failed stimulus.

But sending more money to the states would be akin to providing an alcoholic with a case of booze. If House Republicans have any brains, they will make sure taxpayers in places like Texas don’t pay more to subsidize politicians and special interests in places such as Illinois.

Cross your fingers that they hold firm. In the meantime, let’s enjoy the change in the public mood. Here are a few passages from yesterday’s story in the New York Times.

Across the nation, a rising irritation with public employee unions is palpable, as a wounded economy has blown gaping holes in state, city and town budgets, and revealed that some public pension funds dangle perilously close to bankruptcy. In California, New York, Michigan and New Jersey, states where public unions wield much power and the culture historically tends to be pro-labor, even longtime liberal political leaders have demanded concessions — wage freezes, benefit cuts and tougher work rules. …a growing cadre of political leaders and municipal finance experts argue that much of the edifice of municipal and state finance is jury-rigged and, without new revenue, perhaps unsustainable. Too many political leaders, they argue, acted too irresponsibly, failing to either raise taxes or cut spending. A brutal reckoning awaits, they say. …Fred Siegel, a historian at the conservative-leaning Manhattan Institute, has written of the “New Tammany Hall,” which he describes as the incestuous alliance between public officials and labor. “Public unions have had no natural adversary; they give politicians political support and get good contracts back,” Mr. Siegel said. “It’s uniquely dysfunctional.” …In California, pension costs now crowd out spending for parks, public schools and state universities; in Illinois, spiraling pension costs threaten the state with insolvency. And taxpayer resentment simmers.

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You wouldn’t expect any positive developments from California when it comes to schooling, but this video shows that parents now have the ability, for all intents and purposes, to fire the incumbent management of a government school.

I don’t think this is nearly as good as what’s being proposed in Douglas County, Colorado, but it’s a big step for a union-controlled state such as California.

And the parents of one failing school have pulled the trigger and are forcing good reforms.

2011 could be a very good year for school reform and improvement. That’s bad news for politicians and teacher unions, but great news for parents and kids.

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The world is a laboratory and different nations are public policy experiments. Not surprisingly, the evidence from these experiments is that nations with more freedom tend to grow faster and enjoy more prosperity. Nations with big governments, by contrast, are more likely to suffer from stagnation.

The same thing happens inside the United States. The 50 states are experiments, and they generate considerable data showing that small government states enjoy better economic performance. But because migration between states is so easy (whereas migration between nations is more complicated), we also get very good evidence based on people “voting with their feet.” Taxation and jobs are two big factors that drive this process.

Looking at the census data and matching migration data with state tax systems, here’s what Michael Barone wrote. He finds (not that anyone should be surprised) that the absence of a state income tax is correlated with faster growth, which attracts people from high-tax states.

…growth tends to be stronger where taxes are lower. Seven of the nine states that do not levy an income tax grew faster than the national average. The other two, South Dakota and New Hampshire, had the fastest growth in their regions, the Midwest and New England. Altogether, 35 percent of the nation’s total population growth occurred in these nine non-taxing states, which accounted for just 19 percent of total population at the beginning of the decade.

And here’s Diana Furtchtgott-Roth, writing for Realclearmarkets.com. She uses the presence of right-to-work laws (which prohibit union membership as a condition of employment) as a proxy for the degree to which big government and big labor are imposing restrictions on efficient employment markets. Not surprisingly, the states that have a market-friendly approach create more jobs and therefore attract more workers.

The American people have been voting with their feet, the Census Bureau announced on Tuesday, leaving states with heavy union influence and choosing to live in “right-to-work” states with higher job growth where they cannot be forced to join a union as a condition of employment. …As a result of geographic shifts in population uncovered by the 2010 Census, nine congressional seats will move to right-to-work states from forced unionization states. Some winners are Texas, Florida, Arizona, Georgia, and South Carolina, while losers include New York, Ohio, Michigan, Illinois, and New Jersey. Over the past 25 years job growth in right-to-work states has been over twice as high as in unionized states.

This leaves us with one perplexing question. If we know that pro-market policies work for states, why does the crowd in Washington push for more statism?

Welcome, Instapundit readers. Since many of you might not be regular readers of International Liberty, the important lesson to learn from the Census data is that federalism is good because state governments have to compete against each other, and this helps restrain the greed of politicians. The same principle operates at the international level, which is why tax competition is such a powerful force for liberty.

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I generally focus on fiscal policy and I love low tax rates, so when I say that what happens on school choice in Douglas County, Colorado, may be more important to the future of the nation than what happens with Obama’s plan for higher tax rates next year, that should give you an idea of the critical importance of this education battle.

The union bosses at the National Education Association have been waging a vicious national campaign against competition and choice and have succeeded in limiting school choice to a handful of small systems (largely focused just on the poor) in places such as Milwaukee.

These are great success stories, but the government education monopoly won’t be broken until there is a big, highly visible, school choice success in a large, mostly white, jurisdiction. Douglas County is that example. Here’s an excerpt from a story in today’s Wall Street Journal.

The school board in a wealthy suburban county south of Denver is considering letting parents use public funds to send their children to private schools—or take classes with private teachers—in a bid to rethink public education. The proposals on the table in Douglas County constitute a bold step toward outsourcing a segment of public education…In 2002, the U.S. Supreme Court ruled in a case involving a voucher program in Cleveland that public money could be used for private religious schools as long as parents were not steered to any one particular faith-based program and had a “genuine choice” on where to use their vouchers. About 160,000 children in the U.S., mostly low-income or with special needs, use vouchers or scholarships subsidized indirectly by the state to attend private schools, according to the Brookings Institution in Washington, D.C. …Douglas County School District board members are also considering letting students enrolled in public schools opt out of some classes in favor of district-approved alternatives offered at for-profit schools or by private-sector instructors. Students might skip high-school Spanish, for example, to take an advanced seminar in Chinese, or bypass physics to study with a rocket scientist, in person or online. …The school board is dominated by conservatives, including several who won election last fall on vows to expand educational choices. “These days, you can build a custom computer. You can get a custom latte at Starbucks,” said board member Meghann Silverthorn. “Parents expect the same out of their educational system.” …Douglas County, a swath of tidy cul-de-sacs and look-alike subdivisions, already boasts nine charter schools, two magnet schools and an online school as well as 65 traditional schools—all funded by tax dollars. Students receive high scores on standardized tests and a recent community survey found overwhelmingly positive views about the public schools. Fewer than 4,000 students in the district chose private or home schools last year, according to state statistics. “But we will not rest on our laurels,” board president John Carson said at a recent meeting. …The voucher plan…would give participants about $5,000, enough to cover 35% to 100% of tuition at local private schools.

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