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  • The End of Federalism: Big Labor Edition

    Last week we noted that the Obama administration’s stimulus package had made the federal government, for the first time in our nation’s history, the main source of income for state and local governments. We warned at the time:

    [A]s states become more dependent on federal funding, they begin to lose their ability to set priorities and make policy decisions that are best-suited to their specific needs.

    This Friday the Obama administration made that fear a reality when they threatened to rescind billions of dollars in federal stimulus money from California unless the state reversed their decision to lower home health care worker salaries from $12.10 to $10.10.

    But California, which already has the most unionized public employee workforce, picked on the wrong union. The SEIU owns the Obama administration, and they were a driving force behind the White House Golden State threat. The SEIU has been completely unapologetic about their complete control of the Obama administration. The Los Angeles Times reports:

    SEIU spokeswoman Michelle Ringuette called suggestions that the union’s involvement was inappropriate “absurd.”

    “We lobbied the Obama administration to get the stimulus money to California as quickly as possible, and we pointed out when the state considered action in violation” of the terms for receiving those funds, she said. “We make no apology . . . for expecting the Schwarzenegger administration to obey the law.”

    The end of federalism is here. Thanks to the Obama administration and their economic stimulus package, the SEIU, not you, now runs your state.

    Posted in First Principles [slideshow_deploy]

    14 Responses to The End of Federalism: Big Labor Edition

    1. Ozzy6900, CT says:

      We warned and warned but as always, we (the Conservatives) know nothing! So now the Federal Government tells the State Government what a private company can pay its workers. Just wait, YOUR pay is next!

    2. reluctant leader says:

      How do you unspin a spider's web? Where do you start?

      Let's ignore the fact $12.10 an hour is hardly considered a living wage in California or make no mention of the salaries of management personnel in that business. Let's discuss why California needs billions of stimulus money, the acceptance of which invites outsiders to determine how that money is spent.

      California, like so many other states and even the federal government, refused to increase taxes.

      Of course, outfits like the Heritage Foundation think this is fine. Taxes are the enemy.

      I find it quite puzzling so many directors of the HF were successful in the business world. It's almost like they want us to believe they didn't understand how to turn a profit, or even break even. I guess spending less than you take in doesn't apply in government, and instead of raising the selling price (the equivalent of raising taxes in the public sector) you either cheapen the product or reduce the wages paid to the workforce.

      For once I would like to see conservatives promote raising taxes as one method of balancing budgets and keeping the federal government out of state business instead of complaining about the federal government's right to determine how taxpayer money is best spent if billions is handed over to them.

    3. Pingback: » Financial News Update - 05/11/09 NoisyRoom.net: “Extremism in the defense of liberty is no vice. Moderation in the face of tyranny is no virtue.” Barry Goldwater

    4. Ben C, Ann Arbor, MI says:

      "The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance." – Marcus Tullius Cicero (106-43 B.C.

      Some things never change and certainly we rarely learn from the past.

    5. Ben Franklin, Kendal says:

      What is often forgotten is that LOWERING marginal income, capital gains and corporate taxes often leads to HIGHER government revenues. JFK proved it, Reagan proved it, both Bushes proved it, and Clinton proved it.

    6. JAC Pa says:

      While we might agree on how important it is for a worker to earn enough money to live on, we apparently do not agree on the best way to help that happen. Unions may not be evil, but they are certainly harmful to enterprise, innovation and personal dignity. Any other grtoup, say people for the unborn or supports of tradinital marriage enploying these very same tactics would be called extremist, narrow agenda groups that want to force all others to do things in accord with its values/morals. Well, hello unions! You hate the tactic but use it skillfully. No, it seems you hate the other groups or their goals/values whatever it maybe and claim the higher ground all the while using brute force to mandiate your morals which can hardly be considered main stream. Most workers are not members of a union, why it that I wonder?

    7. Brad Raffensperger, says:

      Maybe this is Obama's payback to The Terminator for being called a girly man? Who is squirming now?

    8. Mike in Omaha says:

      The history of unions demonstrates that, aside from health and safety considerations, their goals are to (a) coerce employers to increase the pay and benefits for union members above the going rate for non-union workers, b) coerce employers to recognize unions, (c) protect the least productive and least efficient workers through work rules, seniority, and disallowing pay for performance, (d) increase the pay and perks of union management, and (e) co-opt governmental authority to enhance (a) through (d). The SEIU illustrates these principles to perfection. And thanks, of course, to FDR's misbegotten New Deal and its National Labor Relations Act for setting all of this into motion.

    9. Diamond, ND says:

      Raising taxes never balances the budget for government. I can't beleive people believe this fallacy! Government spending needs to be held to 10% of GDP, according to Friedman, history shows that this is when economies flourish the most. Everyone seems to think gov't needs more money, no they don't, they need to spend less! Abusive Gov't spending creates dependancy, which creates laziness!

    10. Earl, Martinez Calif says:

      Hey, reluctant leader… I think you think all the problems are always solved by raising TAXES. I never hear any of you talking about cutting out waste and all the other costly perks that all you goverment bureaucrats get.

      I don't think the Heritage Foundation would not care if taxes were raised if they were really needed,and if the goverment did not lie about their use and what they really end up going to.

    11. John Clancy, Wyando says:

      My introduction to unions is a vivid memory: my job was to measure fine clearances on six pistons (for a Plymouth car), then carry the tray of pistons to the next table about 10 feet away. While new on the job, I was eager to do this task thoroughly. At dismissal time a bell rang when I was moving to the next bench. I continued to the next bench after the bell. A union rep called me aside to tell me that I should NOT proceed to the next bench after the bell! (I was not being paid for the steps to the next bench!) This was about 1950. Even though I know they've helped to moderate capitalism for the good of society, I've always wondered about the spirit engendered by unions.

    12. Truth Hurts, The Rea says:

      Just maybe the true problem is the size and intrusion of the federal goverment into the peoples lives and there inept mandates that destroy hope, inventiveness,fortunes and individualism of the common citizen.If you can't see the chains of this administration's ideas you are a fool and slavery will become you!!

    13. Bob, New York CIty says:

      Reluctant leader,

      You are a fool. Those in government are only interested in staying in power. Our tax dollars are used primarily for that purpose.

    14. Pingback: The End of Federalism: Big Labor Edition « News You May Have Missed

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