As we reported last week, 2009 will mark the first time ever in American history that the majority of union members work for federal, state, or local governments. The percentage shift has been staggering. In 1973 only 17.3% of union members worked for government. Today that number is 51.2%. When unions depended on steel plants, coal mines, and automobile factories for their livelihood there was at least a chance that they would support some pro-growth public policies. But now that unions are dependent on the government, and not the private …
Who do the words “union members” bring to mind? United Auto Workers building cars in Detroit? Teamsters truckers hauling freight? Steel workers in Pennsylvania? Not any more. Newly released numbers show that the actual face of today’s union movement is the teller at your local Department of Motorized Vehicles. Preliminary estimates of union membership this year show that most union members now work for the government. The overall unionization rate between January and September 2009 stood at 12.4%, unchanged from last year. However, this difference masks a large difference between …
Obamacare: Day Three of Senate Finance Committee Hearings On Thursday, September 24th, the Senate Finance Committee continued to vote on amendments to the “Chairman’s Mark” of the America’s Healthy Future Act of 2009. As the committee continues to consider more than 500 amendments, it is becoming clear that Senators are directly undercutting the high profile promises that President Obama made to the American people in his widely broadcasted address to Congress on September 9, 2009. Consider several health policy decisions made by members of the Senate Finance Committee: Cutting Medicare …
First came President Barack Obama’s proposal to reduce the tax deductions for charitable contributions. Now Cash for Clunkers, as predicted, is also hurting charities nationwide. USA Today reports: Charities across the country are concerned that the popular “cash-for-clunkers” program will entice people to junk old cars for credit toward new ones rather than donate them. “We know there’s going to be a significant impact,” says Chad Iseman, director of the Kidney Cars program for the National Kidney Foundation. Iseman says the foundation gets about 19% of its annual revenue from …
Today, another burden is being placed on America’s small businesses. Effective on this date is the third installment of the increase of the minimum wage that was passed in 2007. Once again, our federal government has provided not a help, but a hindrance to our economic recovery. When the three-phase minimum wage increase was initially signed into law in May 2007, the unemployment rate was 4.5%, and when the first phase went into place, the unemployment rate was 4.6%. Today it stands at 9.5%. At a time of record deficits, …
Why Government Still Doesn’t Have the Solutions Political irony has experienced a profound illustration in the early days of the Obama administration. Seldom has a president rendered such thoughtful tribute to a predecessor whose values his every legislative effort was certain to undermine. Case in point: Two events on Capitol Hill during the first week of June 2009 were coordinated to honor the life and legacy of Ronald Reagan. At a signing ceremony in the White House Diplomatic Room, President Obama authorized a centennial commission to plan for the former …
If you need another reason to not let bloated government run wild, watch this video and read this paper: …the federal civilian workforce has become an elite island of secure and highly paid workers, separated from the ocean of private-sector American workers who must compete in today’s dynamic economy. [youtube]http://www.youtube.com/watch?v=Myo6dqSp8EE[/youtube]
Under the header Big Government Ahead, David Brooks identifies four sources of massive new spending soon to be coming out of Washington and warns: “What we’re going to see, in short, is the Gingrich revolution in reverse and on steroids. There will be a big increase in spending and deficits. In normal times, moderates could have restrained the zeal on the left. In an economic crisis, not a chance. The over-reach is coming.” As bad as the new levels of spending in Washington will be, what Brooks forgets to mention …
In what some observers are calling a reshaping of Wall Street, two of the world’s largest investment banks, Merrill Lynch and Lehman Brothers, are set to disappear. Lehman has announced it will file for Chapter 11 bankruptcy protection, and Merrill Lynch was bought by Bank of America. For all the complicated financial instruments and relationships involved in the current financial turmoil, the underlying cause is still relatively simple: the bursting of the housing bubble. One market strategist told The New York Times: “We are in the grip of a vicious …
This weekend Treasury Secretary Henry Paulson announced that mortgage giants Freddie Mac and Fannie Mae will be placed in a government conservatorship that closely resembles a bankruptcy reorganization. The move puts U.S. taxpayers on the hook for $5.4 trillion in outstanding mortgage debt and commits the government to provide as much as $100 billion to each company in capital commitments. Two months ago, the Congressional Budget Office estimated that the ultimate cost to taxpayers of such a move would be $25 billion. But bankers hired by the Treasury Department now …
