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Economy
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Title: The hollowing-out of Wisconsin: The untold story of Walker's plan is that it will accelerate the state's race to the bottom as a low-wage, low-skill economy
Source: guardian.co.uk
URL Source: http://www.guardian.co.uk/commentis ... ar/01/wisconsin-public-finance
Published: Mar 1, 2011
Author: Meir Russ
Post Date: 2011-03-01 09:32:01 by Godwinson
Keywords: None
Views: 12763
Comments: 19

The hollowing-out of Wisconsin
The untold story of Walker's plan is that it will accelerate the state's race to the bottom as a low- wage, low-skill economy

Meir Russ

Tuesday 1 March 2011 14.03 GMT

The current events in Wisconsin can be framed in four different story lines, each presenting a pair of conflicting interests: budget gaps and cuts (private v public sector); state government and business against labour unions (business v labour); can we the people afford the educational and health services we have (the haves v the have-nots); and corporations against entrepreneurs (big business v small business).

The media focuses on and loves the first two stories. They fit in well with the "big picture" national politics and discussion. They are simple to tell. They capture headlines and agitate people.

The other two are lmore complex and difficult to sell to the media and to the public. The first is the quality and the affordability of educational and health services. Governor Scott Walker's plan will lower, if not destroy, the quality of one of the best in the world's public educational systems. His assault on education is broad (K-12 and universities), sophisticated (salaries and benefits cuts to academic and administrators service providers, changing the structure of state support and the state university system) and deep (state employees in Wisconsin are currently underpaid by comparison with equivalent staff by 10-30%). The net result? Wisconsin in 2009 was already 3% below the national average in the percentage of adults 25 years and over with a bachelor's or higher degree (pdf), compared to 2% behind in 2000. Walker's assault on health services will also cost tens of thousands of people in the state to lose their Medicaid coverage.

But the least covered story is the last one. The governor's plan is supposed to create 250,000 jobs in Wisconsin. The tax cuts he proposed and the policies he is promoting suggest that if his plan succeeds, these will be low-paying jobs that the state cannot afford. This will continue the downward spiral of Wisconsin's economy. Large companies rarely are net job creators, and can and will move out of state when the financial incentives recede. Investing less in human capital and promoting cheap labour is not a recipe to bring in knowledge-based, high-paying jobs. Lowering the quality and increasing the cost of educational and health services will encourage the outward migration of the young, the bright, the entrepreneurial and the able.

In short, Wisconsin will be losing the most viable asset the state has: its human capital. This will accelerate existing long-term trends. Already, in 2003, Wisconsin was a net exporter of residents with bachelor's degrees (pdf), and the median population age in 2009 was more than 4% higher than the national median; in 1990, it had been equal (pdf). If you wonder why, then it's worth knowing that the median household income in Wisconsin went down from more than 4% above the national median in 1999 (pdf) to only 0.4% above in 2009.

Not surprisingly, Walker is playing to the unholy coalition of big money, government administration and judiciary that already gave us the highest level of economic inequality since the depression. The US is closer than it has ever been to becoming a plutocratic state and country. Such policies are accelerating the decline and preventing the appropriate investment in future, new knowledge-based economy stars.

So, in the "best case" scenario, Wisconsin will attract more low-paying jobs. In the worst case, the state will not get even that, since it will be competing with Ohio and New Jersey in a race to the bottom. Shouldn't the state and chambers of commerce develop policies to support small businesses, instead of subsidising large corporations (as it may do, for example, if it were to allow Koch Industries and other companies to purchase state-owned power plants in non-bid contracts), so that those higher-paying jobs that will keep graduates in Wisconsin are created?

Over the last 30 years, the economic inequality, rate of poverty and unemployment have all risen slowly but steadily, while the enrichment of the few has continued unabated – amplified by the quiet collaboration of both political parties and the three branches of the government.

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#1. To: mcgowanjm, lucysmom, go65 (#0)

Lowering the quality and increasing the cost of educational and health services will encourage the outward migration of the young, the bright, the entrepreneurial and the able.

Maybe that is part of the long term plan also? The oligarchs can only maintain their base of power if the population is kept in ignorance and fear?

"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.

Godwinson  posted on  2011-03-01   9:37:59 ET  Reply   Trace   Private Reply  


#2. To: Godwinson (#1)

Lowering the quality and increasing the cost of educational and health services will encourage the outward migration of the young, the bright, the entrepreneurial and the able.

I've been doing this my entire life.

Segregation. White Flights. Dying towns left in my wake.

We've now gone as far as we can go on that.

Anyon eleaving the US better have a couple of languages under his/her belt.

Better to stay and grab as the billionaires topple. ;}

mcgowanjm  posted on  2011-03-01   9:41:24 ET  Reply   Trace   Private Reply  


#3. To: Godwinson (#1)

The oligarchs can only maintain their base of power if the population is kept in ignorance and fear?

That only works up to a point; after that all hell breaks loose.

French Revolution.

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-03-01   10:09:44 ET  Reply   Trace   Private Reply  


#4. To: lucysmom (#3) (Edited)

That only works up to a point; after that all hell breaks loose.

French Revolution.

See the Arab world. Those post colonial dictatorships seem to have lasted 30 to 40 years before they collapsed. We are in the 30th year of the Reaganomics ideology that ruined America's middle class and transfered the wealth to the top 2%.

It may be that as the economy visibly recovers but the private sector stops adding new jobs or the jobs they add are low paying - many Republican base types who bought the trickle down nonsense will see that nothing trickled down but scraps and they will be done with the mind games the GOP played on them.

The GOP still has the racist card to play - but I see their economic ideology slipping away as a popular motivator.

"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.

Godwinson  posted on  2011-03-01   10:19:08 ET  Reply   Trace   Private Reply  


#5. To: Godwinson (#4)

It may be that as the economy visibly recovers but the private sector stops adding new jobs or the jobs they add are low paying - many Republican base types who bought the trickle down nonsense will see that nothing trickled down but scraps and they will be done with the mind games the GOP played on them.

They hold power now because they've got us fighting eachother as in Ferret Mike's joke about the CEO, the teabagger, and the union guy. One of these days the union guy and the teabagger are going to figure out that the CEO has got them fighting over one cookie while he makes off with eleven.

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-03-01   10:53:56 ET  Reply   Trace   Private Reply  


#6. To: lucysmom (#5)

They hold power now because they've got us fighting eachother as in Ferret Mike's joke about the CEO, the teabagger, and the union guy. One of these days the union guy and the teabagger are going to figure out that the CEO has got them fighting over one cookie while he makes off with eleven.

Mubarak was trying that in Egypt having the minority Islamic fundies scapegoat the minority Copts.

"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.

Godwinson  posted on  2011-03-01   10:56:38 ET  Reply   Trace   Private Reply  


#7. To: Godwinson (#6)

Mubarak was trying that in Egypt having the minority Islamic fundies scapegoat the minority Copts.

and the result of that:

Egypt’s majority Muslim population stuck to its word Thursday night. What had been a promise of solidarity to the weary Coptic community, was honoured, when thousands of Muslims showed up at Coptic Christmas eve mass services in churches around the country and at candle light vigils held outside. From the well-known to the unknown, Muslims had offered their bodies as “human shields” for last night’s mass, making a pledge to collectively fight the threat of Islamic militants and towards an Egypt free from sectarian strife.

http://www.pickledpolitics.com/archives/11365

Wasn't long after that that they brought down the government.

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-03-01   11:06:45 ET  Reply   Trace   Private Reply  


#8. To: lucysmom (#7)

Egypt’s majority Muslim population stuck to its word Thursday night. What had been a promise of solidarity to the weary Coptic community, was honoured, when thousands of Muslims showed up at Coptic Christmas eve mass services in churches around the country and at candle light vigils held outside. From the well-known to the unknown, Muslims had offered their bodies as “human shields” for last night’s mass, making a pledge to collectively fight the threat of Islamic militants and towards an Egypt free from sectarian strife.

I have two pieces of bad news for you lucy:

1) The money you're expecting from that Nigerian account will never materialize

and

2) You're not really the owner of the Brooklyn Bridge.

And the sheep will bleat their submission,
Seeing the others as fools,
Not knowing nor even caring,
They've become no more than tools.

Burma Shave.

Wood_Chopper  posted on  2011-03-01   11:14:59 ET  Reply   Trace   Private Reply  


#9. To: Wood_Chopper (#8)

I have two pieces of bad news for you lucy:

That must really bug you.

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-03-01   11:22:36 ET  Reply   Trace   Private Reply  


#10. To: Wood_Chopper, lucysmom (#8)

I have two pieces of bad news for you lucy:

1) The money you're expecting from that Nigerian account will never materialize

and

2) You're not really the owner of the Brooklyn Bridge.

Since you seem so certain, does that mean you already got the money and own the bridge?

"http://first-draft-blog.typepad.com/.a/6a00d8341c5ced53ef0148c7a28c4b970c-320wi"

Rek  posted on  2011-03-01   11:43:14 ET  Reply   Trace   Private Reply  


#11. To: Rek (#10)

Since you seem so certain

So you believe it's possible that lucy actually will receive the money from the Nigerian account, and that she owns the Brooklyn Bridge?

And the sheep will bleat their submission,
Seeing the others as fools,
Not knowing nor even caring,
They've become no more than tools.

Burma Shave.

Wood_Chopper  posted on  2011-03-01   11:49:36 ET  Reply   Trace   Private Reply  


#12. To: Wood_Chopper (#11)

So you believe it's possible that lucy actually will receive the money from the Nigerian account, and that she owns the Brooklyn Bridge?

By your statement you seem to already claim knowledge of the ownership.

"http://first-draft-blog.typepad.com/.a/6a00d8341c5ced53ef0148c7a28c4b970c-320wi"

Rek  posted on  2011-03-01   11:56:47 ET  Reply   Trace   Private Reply  


#13. To: Rek (#12)

By your statement you seem to already claim knowledge of the ownership.

Back to logic class for you. My statement does nothing of the kind.

My statement claims the knowledge that lucy won't get the Nigerian money, and doesn't own the Brooklyn Bridge.

I never said I know who owned it, I said I know lucy doesn't.

So I'll ask you again:

Do you believe it's possible that lucy actually will receive the money from the Nigerian account, and that she owns the Brooklyn Bridge?

And the sheep will bleat their submission,
Seeing the others as fools,
Not knowing nor even caring,
They've become no more than tools.

Burma Shave.

Wood_Chopper  posted on  2011-03-01   12:17:14 ET  Reply   Trace   Private Reply  


#14. To: Wood_Chopper, lucysmom (#13)

Back to logic class for you. My statement does nothing of the kind.

My statement claims the knowledge that lucy won't get the Nigerian money, and doesn't own the Brooklyn Bridge.

I never said I know who owned it, I said I know lucy doesn't.

So I'll ask you again:

Do you believe it's possible that lucy actually will receive the money from the Nigerian account, and that she owns the Brooklyn Bridge?

Logic says when a declarative statement is made that hopefully the declarer is attesting as to the veracity of the statement. Your original statement was changed after you already indicated that there is Nigerian money up for grabs and a bridge in the NYC area that's for sale. And that Lucy won't get either. First you have to prove the truth of your declaration of the original before you parse it for your convenience.

"http://first-draft-blog.typepad.com/.a/6a00d8341c5ced53ef0148c7a28c4b970c-320wi"

Rek  posted on  2011-03-01   12:36:31 ET  Reply   Trace   Private Reply  


#15. To: Rek (#14)

Fuck off.

And the sheep will bleat their submission,
Seeing the others as fools,
Not knowing nor even caring,
They've become no more than tools.

Burma Shave.

Wood_Chopper  posted on  2011-03-01   12:39:55 ET  Reply   Trace   Private Reply  


#16. To: Wood_Chopper (#15) (Edited)

Fuck off.

First name caller or user of curse words in, loses.

"http://first-draft-blog.typepad.com/.a/6a00d8341c5ced53ef0148c7a28c4b970c-320wi"

Rek  posted on  2011-03-01   12:40:54 ET  Reply   Trace   Private Reply  


#17. To: Rek (#16)

First name caller or user of curse words in, loses.

Congratulations!!!

You won! You won!

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-03-01   15:06:36 ET  Reply   Trace   Private Reply  


#18. To: Rek, Wood_Chopper (#14)

Wood_Chopper: Back to logic class for you. My statement does nothing of the kind. My statement claims the knowledge that lucy won't get the Nigerian money, and doesn't own the Brooklyn Bridge. I never said I know who owned it, I said I know lucy doesn't.

Wreck: Logic says when a declarative statement is made that hopefully the declarer is attesting as to the veracity of the statement. Your original statement was changed after you already indicated that there is Nigerian money up for grabs and a bridge in the NYC area that's for sale. And that Lucy won't get either. First you have to prove the truth of your declaration of the original before you parse it for your convenience.

Wow.

NICE attempt to manipulate what chopper said.

Of course, your parsing of chopper's words to paint a completely different picture, is amusing- if utterly transparent.

chopper doesn't have to "prove the truth" of his statement; common-sense demonstrates it to be so.

You might as well ask, "prove the sun rises in the East, and sets in the West." Superficially, it would seem a relevant challenge. But any modicum of intelligence would demonstrate the sheer stupidity of such a challenge.

As to your demonstration of logic, wreck?

Socialist ass-hats think "There will be no more money when the U.S. dollar has no value, until that time we can keep printing more." And yes, that IS from LF's answer to Ben Bernanke, go65, leading disfunctional and delusional socialist of the forum.

"You want me to kill THE ENEMIES of Jappos, I'll kill THE ENEMIES of Jappos, Rebs, or Sioux, or Cheyenne... For 500 bucks a month I'll kill whoever you want. But keep one thing in mind: I'd happily kill you for free." Algren, "The Last Samurai"

Capitalist Eric  posted on  2011-03-01   17:22:55 ET  (1 image) Reply   Trace   Private Reply  


#19. To: Capitalist Eric (#18) (Edited)

Hence the reason I told Rek to "Fuck off". He's not relevant, nor worth your or my time to debate.

And the sheep will bleat their submission,
Seeing the others as fools,
Not knowing nor even caring,
They've become no more than tools.

Burma Shave.

Wood_Chopper  posted on  2011-03-01   21:28:12 ET  Reply   Trace   Private Reply  


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