Posts Tagged ‘mchugh’

Cars Might Disappear (like airplanes did)

Jack McHugh with a sober reminder:

“So we must provide a bailout because a GM bankruptcy would make the US auto industry evaporate. Just like airline bankruptcies wiped out air travel in the U.S.

Younger readers may not remember the time before the airline bankruptcies, when anyone could go to an airport, get on a big powerful jetliner, and travel anywhere in the world in a matter of hours. The skies were filled with those jets, taking millions of people hither and yon at great speed and convenience.

Of course, that’s all gone now. Since the airline bankruptcies it’s become a quieter world, with only the occasional military aircraft visible in the skies. Our horizons have narrowed considerably, limited as we are to slow cross-country travel by automobile, and on ships to different continents. Sadly, soon the cars will go away also, and we’ll return to duller lives in which most people never travel more than 20 miles beyond their home village.

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Too bad the government doesn’t create a process by which companies that can’t pay their bills could get temporary protection from creditors, contingent on their fixing the problems that got them in trouble in the first place. I suppose federal courts could oversee the process. It would allow those companies to actually come out not just with clean balance sheets, but better able to compete in their markets. Ah well - maybe in the old days our government would have been able a create a common-sense process like that, but of course those days have passed.

Oh, wait a minute . . .”

School Employees Union Shows School Boards the Whip

From Jack McHugh’s blog:

In Us vs. Them: The People and the Political Class I argued that true representative government has been supplanted by an inbred, self-serving, self-perpetuating political/government class and as a result, the government has escaped the control of the people.

Alarmist? Extreme? Consider this news item: The MEA teachers union has organized a recall campaign against two members of the Wayne-Westland school board following an illegal MEA-inspired strike against the district in October. The strike was at root over whether MESSA, the MEA’s money machine, would get the district’s health insurance loot, or whether school employees would obtain essentially the same coverage from another insurer at lesser cost.

Making MESSA a bargaining issue is itself prohibited by state law, but set that aside. The deeper meaning of this recall is that a group of lavishly compensated public employees and their union is using resources that at root are provided by taxpayers to fire the district’s managers, who were selected by citizens to be the stewards of their school and tax money.

This is not just a cynical manipulation of the political system, it’s a perversion of the very concept of democracy. If the union’s recall is successful and becomes a common tactic then are not just approaching the tipping point where the government class amass such power and resources that efforts to dislodge them become futile – we will have passed it.

Here’s an analogy. Imagine that some residents of Wayne-Westland pooled their money and started a restaurant. They hired a manager, who hired cooks and waiters. Over time the waiters became surly, the food mediocre and the costs excessive. The manager cracked down, and in response the employees fired him.

Whoops – employees don’t hire and fire managers. That’s the owners’ prerogative. Apparently not when it comes to the management of an even more important institution, our school system. Not anymore, that is, if the MEA is successful.

Given the union’s deep pockets and rippling political muscles the recall may well succeed. Just last week the MEA succeeded in recalling four members of the Reed City school board who exercised their fiduciary duty by voting to privatize food and custodial services. That will the district some $300,000 taxpayer dollars a year, or about $200 per student, as reported by the Education Action Group. (Incidentally, privatization decisions are another prohibited bargaining area, but the House has passed a bill to repeal that.)

Of course the union will argue that the final recall decision is in voters’ hands, so there is no corruption of the democratic process. Sure - the same way a 95-pound weakling going into the ring against the heavyweight boxing champion is a fair fight. Most school board members are political amateurs with little campaign savvy or ability to raise money - their adversary here is exactly the opposite.

Motivated and empowered by its concentrated benefits, in regular school elections the MEA already has outsized advantages over the dispersed interests of taxpayers. These recalls are showing the whip to school board members pressured by the realities of the job, reminding them to always place the union’s interest ahead of the taxpayers.

The New Two Party System

The political landscape has changed.  The Madisonian idea of competing interest groups and parties balancing each other out is over.  There are still two parties, but they’re not the two major political parties you think and the balance of power is permanently tilted in favor of one of them.  It’s us and them.  The people, and the political class.  Jack McHugh explains:

Cross-posted from Mackinac Center for Public Policy

The fundamental problem facing our nation is that true representative government has been supplanted by an inbred, self-serving, self-perpetuating political class that does not represent the people. As a result, the government has escaped the control of the people.

Evidence is all around. For example, whether or not one agrees with the policy, for decades term limits have been consistently favored by an overwhelming majority. Yet they are opposed and sabotaged by the political class at every opportunity (most recently in New York City, where the city council just overturned mayoral term limits despite their being approved by 59 percent of the voters in a 1993 initiative, confirmed in a 1996 referendum.) By what principle of representative government is negating the repeatedly expressed will of the people justified?

Similarly, there’s a durable popular consensus favoring a federal balanced budget amendment, and an equally persistent refusal by the political class to enact it. At the state level, “Taxpayer Bills of Rights” spending limitations enjoy broad public support, but will never pass a single legislative body.

It’s not just the politicians - public employees are an integral part of the problem, too. For example, in Michigan last year there was an effort by some Senate Republicans and House Democrats to outsource certain juvenile justice and adoption services to private social service agencies. Despite bipartisan recognition that it would save money and generate better outcomes for children, the measure was gutted at the 11th hour because some 800 government jobs would have become superfluous.

Locally, can anyone doubt the result if pollsters asked, “Should municipal and school employees be able to retire at age 50 with a full pension and lifetime health coverage?” Yet such benefits are commonplace. The elected officials who grant them and their beneficiaries are all members of the same political/government class, which protects its own above all else.

The political class perpetuates its rule in many ways. One is campaign finance regulations that impose nearly impossible burdens on challengers, while incumbents use tax dollars and their offices in never-ending campaigns. Also, the government’s pampered minions - public employees and their unions - have become what may be the most powerful and effective special interest, and are fully engaged in electoral politics. Their exclusive goal is defeating candidates or initiatives that might diminish their authority, resources or privileges, and their political power all but dominates elections at every level.

That particular power-center is in part the offspring of the 19th century’s Progressive movement goal of replacing the bribes, kickbacks and graft of a corrupt patronage system with a professionalized, non-partisan bureaucracy. With the growth of a massive welfare state this “good government” reform metastasized into a much deeper corruption of the democrat ideal: An unelected bureaucratic nomenkaltura, controlling or allied with today’s political class, manipulating the system to deprive the people of any real choice. You can vote for the red squad or the blue squad, but they’re all members of the same elite, which always promotes its interests ahead of yours.

Can anything be done? What’s needed is a movement that, like the Progressives in their time, captures the public’s imagination by defining a new dimension in U.S. politics: Not Republican vs. Democrat, conservative vs. liberal, or populist vs. capitalist, but the people vs. a political and government class that no longer represents them.

Don’t look for help from the political parties. Parties are all about power, and recent history demonstrates just how quickly a party abandons whatever principles it professes once that object is gained, instead embracing the instrumentalities of big government to keep it.

As always, the true source of reform must be the people themselves. Those who would restore representative government must raise the public’s consciousness regarding this fundamental but little understood divide: The people vs. the political/government class.

The rare candidate who sincerely opposes the status quo, or ballot initiative that challenges it, enjoys the tremendous advantage of an enthusiastic public. But they must also expect concerted counter-attacks from the arrayed forces of the system itself, rippling with political muscles.

These forces will only be overcome when the public explicitly understands where the real divide lies, and so sees through the inevitable demonization, lies and outright thuggery funded by the political establishment’s nearly bottomless resources, much of which come directly or indirectly from the state itself.

We may be approaching a tipping point where this political class and establishment amass such power and resources that efforts to dislodge them become futile, and Americans are no longer sovereigns, but subjects. While we still are able, defenders of liberty must become modern-day Paul Reveres, raising the alarm by identifying freedom’s true and most and potent enemies: Those who run and operate our unrepresentative governments.

Meanwhile in State/Local News…

Jack McHugh reminds us not to be so focused on the national political scene to ignore government malpractice right here in Michigan on the state and local level.  From his blog:

Same-old, same-old.

A person who is a deeply knowledgeable and experienced observer of municipal malfeasance in metro Detroit has shared the following with me:

“The News and Freep report that the North Oakland Medical Center is reopening one week after shutting down. It is absolutely disgusting to me that a hospital that has been losing tons of money and has been badly mismanaged is now open again because of friends in high places in Lansing (the highest).  Worse, state and federal taxpayers will ante-up $5.7 million for a bailout, using Medicaid money to indirectly subsidize the purchase by a for-profit physicians group.

“Here’s the most disgusting part: The state is rewarding a mismanaged basket-case with money that might have been better used by well run institutions. The Freep article quotes the CEO of St. Joseph Mercy saying, ‘Unbelievable - the amount of money Medicaid gives to hospitals is less than our costs. I find it amazing they’d give that money away to a brand-new entity, especially a for-profit physicians group.’

“I guess I should not be surprised. Pontiac is also getting a brand new transportation center - to replace the one the state repurchased from the city and is tearing down.  The state repurchased the old one from the city because the city defaulted in payments to the state for the original boondoggle.  It was a dismal failure because no one used it.  The same will be true of the new larger one being totally constructed with state money.

“Finally, the purchaser of the Silverdome did not show up by the Nov. 1 deadline with his check.  The Pontiac council members will no doubt extend the deadline.  The proposed purchaser has not paid one cent as a good faith down payment.”

A city that makes Detroit’s look good in the fiscal propriety department is pretty scary. Even scarier is when the state is a willing partner in the ongoing scam, and fleeces state taxpayers to pay for it.

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Meanwhile in Detroit fiscal news, two items from the same day:

“The state froze another $33.4 million in city revenue sharing Friday because Detroit hasn’t turned in its yearly audit. It’s at least the sixth time in recent months that the Michigan Department of Treasury has sat on the funding. Joe Harris, the city’s new chief financial officer, has said he hopes to get the audit done by November. But on Monday he said he had no comment when asked whether the city would meet that date. The audit is more than 10 months late.” (Detroit News)

“Many financial experts, parents and school officials say a state review team’s sweeping demands for Detroit Public Schools to improve its finances are reasonable, but the district may have to make radical changes in leadership and other areas to avert a state financial takeover. Several experts said many of the reporting requirements outlined in the 15-page consent decree are standard practices that all school districts should follow, such as tracking cash flow and documenting unpaid bills, but some have questioned whether the troubled school system can fully comply within the timeframe outlined by the reviewers. (Detroit News)