Really bad reporting in Wisconsin

From David Cay Johnston, one of the few real reporters we have left:

When it comes to improving public understanding of tax policy, nothing has been more troubling than the deeply flawed coverage of the Wisconsin state employees’ fight over collective bargaining.

Economic nonsense is being reported as fact in most of the news reports on the Wisconsin dispute, the product of a breakdown of skepticism among journalists multiplied by their lack of understanding of basic economic principles.

Gov. Scott Walker says he wants state workers covered by collective bargaining agreements to “contribute more” to their pension and health insurance plans.

Accepting Gov. Walker’ s assertions as fact, and failing to check, created the impression that somehow the workers are getting something extra, a gift from taxpayers. They are not.

Out of every dollar that funds Wisconsin’ s pension and health insurance plans for state workers, 100 cents comes from the state workers.

How can that be? Because the “contributions” consist of money that employees chose to take as deferred wages – as pensions when they retire – rather than take immediately in cash. The same is true with the health care plan. If this were not so a serious crime would be taking place, the gift of public funds rather than payment for services.

Thus, state workers are not being asked to simply “contribute more” to Wisconsin’ s retirement system (or as the argument goes, “pay their fair share” of retirement costs as do employees in Wisconsin’ s private sector who still have pensions and health insurance). They are being asked to accept a cut in their salaries so that the state of Wisconsin can use the money to fill the hole left by tax cuts and reduced audits of corporations in Wisconsin.

Stop bitching, do something

I’ve been listening to blog readers say for years, “But what can I do?”

This week, we have plenty. You want rallies? We got rallies. All over America, people will be standing tall in solidarity with the Wisconsin and Ohio public sector strikers this Saturday. MoveOn has called for rallies at 50 statehouses this Saturday, Feb. 26, at noon.

But wait, there’s more! You can also stand up this Saturday to be counted with the workers of the United Kingdom and Europe, who will be demonstrating against their countries’ austerity cuts.

In solidarity with UKUncut, USUncut will be holding rallies this Saturday across the country. (Look for your state here.) They focus on corporations that pay little or no taxes while services for the rest of us are cut (hence the name). Remember, 72% of foreign and 57% of US corporations pay no tax in USA. Join the Facebook group here! Some perspective: If 13 hedge fund managers were taxed like the rest of us, they’d fund 300,000 teachers.

Here are the some of the other rallies I found:

PHILADELPHIA
Rally in solidarity with the workers of Wisconsin and Ohio
11:30am AND 5pm Thursday, February 24
Municipal Services Building Plaza
15th & JFK Blvd
(across from City Hall and LOVE Park)

Saturday, Feb. 26, noon
US Uncut rally against tax-dodging Comcast at the Comcast Building
17th & Arch Streets

NEW JERSEY
Stand Up For Working People!
Rally at 12 Noon at the Statehouse, 125 West State Street, Trenton NJ
Friday, February 25, 2011

INDIANA
Peaceful Protest of Corporate Tax Dodging
Saturday, February 26 · 12:00pm – 2:00pm
Bank of America
52710 State Road 933
South Bend, IN

Bank of America nabbed $45 billion in government bailout funds while funneling its books into 115 offshore tax havens.

CALIFORNIA
San Francisco, Sat Feb 26th 2011
2/26/2011; 10:30am-12:30pm; Union Square Park (Powell St. b/n Post & Geary), San Francisco

OREGON
Medford, Oregon, Sat Feb 26th 2011
Bank of America
222 West Main Medford OR
They are open from 9am to 2pm
Please bring signs, try to get peaceful and lawful attention, please don’t block the sidewalk.

UTAH
Salt Lake City, Sat Mar 5th 2011
Info here.

Check #usuncut, #ukuncut or #226demo in Twitter for more updates.

The liquidation of society

Versus the global labor revival. Go read Matt Stoller’s entire piece — it’s long but well worth it.

I do find it fascinating (if unsurprising) that Obama refuses to take a real position in favor of the Wisconsin strikes, which means the Stockholm syndrome process is now complete and the former community organizer is openly and unashamedly on the side of the oligarchy. (I’m sure his Wall Street mentors have explained to him that no reasonable person would take a position against the “needs” of the global labor market!

But if there’s one thing I know, whether it’s on a global scale or played out between two people, it’s this: Control freaks always lose, because while they’re making plans to move people around like chess pieces, they forget that even chess pieces have minds of their own.

As Daniel Ellsberg once said, “Courage is contagious.” And what happened in Wisconsin came from the inspiration of see millions of powerless people join together and overthrow a regime in Egypt. It didn’t come from union leaders, who have been perpetually unprepared for the onslaught against them. Just look at the webpage of the AFL-CIO of Wisconsin. It looks like it was designed by Geocities in 1997. Yet, #wiunion has been trending on and off for a week on Twitter, and has inspired actions all over the country (check out the Cheesehead protest in NYC).

This upsurge certainly didn’t come from the Democratic Party leadership. I mean, Rhode Island is a pretty reliable blue state and the last Mayor of Providence was just elected to Congress as a Democrat. Meanwhile, Former Democratic Michigan Governor Jennifer Granholm is saying the Wisconsin state Senators need to get back to work. And what is striking about Obama’s posture on the greatest uprising in American labor history of this century, is how he is really nowhere, meekly tut-tutting about union busting while gravely acknowledging fiscal realities and tough choices. But the Wisconsin protests happen every day, without formal authority structures. This quote from the Huffington Post Hill newsletter shows that there is something new going on.

Tom O’Grady, a union sheet metal worker from Sun Prairie, Wis., said the sight of youngsters protesting against Gov. Scott Walker’s efforts to gut collective bargaining rights is bittersweet. “It’s humbling,” said O’Grady, 60. “We see all these kids, they may never have a union job, and they’re here every night for us? It’s very humbling.”

Striking just isn’t in the collective memory of the American public anymore. This kind of highly politicized hybrid political protest/strike walks like an Egyptian these days, which is why Egyptians were sending Wisconsinites pizza and Madison protesters were holding signs lauding teachers, workers, and the new Egyptian flag. In fact, Madison may represent a new kind of American labor model, the melding of old school unions, Howard Dean-style internet-based organizing, Anonymous-style serious pranking, and social media reporting on protests and policy. There’s an anti-bailout class-based fervor here as well, with a simmering anger at Wall Street as subtext. It’s headless and global, though there is leadership. The most powerful moment so far in the Wisconsin conflict didn’t come from the actions of a labor leader, but froma prank call by alt-weekly “Buffalo Beast” editor Ian Murphy, who pretended to be billionaire American oligarch David Koch and had a frank 20 minute conversation with Governor Scott Walker. Murphy originally wanted to pose as Hosni Mubarak, but couldn’t pull off the accent.
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