From Town Hall:
Larry Kudlow
Madison Madness
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Sign-Up The Democratic/government-union days of rage in Madison, Wis., are a disgrace. Wisconsin Rep. Paul Ryan calls it Cairo coming to Madison. But the protesters in Egypt were pro-democracy. The government-union protesters in Madison are anti-democracy -- they are trying to prevent a vote in the legislature. In fact, Democratic legislators themselves are fleeing the state so as not to vote on Gov. Scott Walker's budget cuts.
That's not democracy.
The teachers' union is going on strike in Milwaukee and elsewhere. They ought to be fired. Think Ronald Reagan PATCO in 1981. Think Calvin Coolidge police strike in 1919.
The teachers' union on strike? Wisconsin parents should go on strike against the teachers' union. A friend e-mailed me to say that the graduation rate in Milwaukee public schools is 46 percent. The graduation rate for African-Americans in Milwaukee public schools is 34 percent. Shouldn't somebody be protesting that?
Gov. Walker is facing a $3.6 billion budget deficit, and he wants state workers to pay one-half of their pension costs and 12.6 percent of their health benefits. Currently, most state employees pay nothing for their pensions and virtually nothing for their health insurance. That's an outrage.
Nationwide, state and local government unions have a 45 percent total-compensation advantage over their private-sector counterpart. With high-pay compensation and virtually no benefits co-pay, the politically arrogant unions are bankrupting America -- which by some estimates is suffering from $3 trillion in unfunded liabilities.
Exempting police, fire and state troopers, Walker would end collective bargaining over pensions and benefits for the rest. Collective bargaining for wages would still be permitted, but there would be no wage hikes above the consumer price index. Unions could still represent workers, but they could not force employees to pay dues. In exchange for this, Walker promises no furloughs or layoffs.
Indiana Gov. Mitch Daniels is also pushing a bill to limit the collective-bargaining rights of teachers for wages and wage-related benefits. Similar proposals are being discussed in Idaho and Tennessee. In Ohio, Gov. John Kasich wants to restrict union rights across the board for all state and local government workers. More generally, both Democratic and Republican governors across the country are taking on the extravagant pay of government unions.
Why? Because taxpayers won't stand for it anymore.
In an interesting twist on this story, even private unions are revolting against government unions. Private unions pay taxes, too. And they don't have near the total compensation of the public unions. It's no wonder they're fed up.
So, having lost badly in the last election, the government-union Democrats in Wisconsin have taken to the streets. This is a European-style revolt, like those seen in Greece, France and elsewhere. So it becomes greater than just a fiscal issue. It is becoming a law-and-order issue.
President Obama, who keeps telling us he's a budget cutter, has taken the side of the public unions. House Speaker John Boehner correctly rapped Obama's knuckles for this. If the state of Wisconsin voters elected a Chris Christie-type governor with a Republican legislature, then it is a local states' rights issue.
But does President Obama even know that the scope of collective bargaining for federal employees is sharply limited? According to the Manhattan Institute, federal workers are forbidden to collectively bargain for wages or benefits. Instead, pay increases are determined annually through legislation.
Meanwhile, Walker said it would be "wise" for President Obama to keep his attentions on Washington, not Wisconsin. "We're focused on balancing our budget," he said in a television interview. "It would be wise for the president and others in Washington to be focused on balancing their budget, which they're a long ways from doing."
Amen.
Obama should stay out. And Walker should stand tall and stick to his principles. A nationwide taxpayer revolt against public unions can save the country. Otherwise, the spiraling out-of-control costs of state public-union entitlements will destroy the local fisc, just as surely as the unreformed federal entitlements of Social Security and health care are wrecking our national finances.
Larry Kudlow
Lawrence Kudlow is host of CNBC’s “The Kudlow Report,” which airs nightly from 7 p.m. to 8 p.m.
Larry Kudlow
Madison Madness
Email Larry Kudlow
Columnist's Archive Share Buzz 0diggsdigg
Sign-Up The Democratic/government-union days of rage in Madison, Wis., are a disgrace. Wisconsin Rep. Paul Ryan calls it Cairo coming to Madison. But the protesters in Egypt were pro-democracy. The government-union protesters in Madison are anti-democracy -- they are trying to prevent a vote in the legislature. In fact, Democratic legislators themselves are fleeing the state so as not to vote on Gov. Scott Walker's budget cuts.
That's not democracy.
The teachers' union is going on strike in Milwaukee and elsewhere. They ought to be fired. Think Ronald Reagan PATCO in 1981. Think Calvin Coolidge police strike in 1919.
The teachers' union on strike? Wisconsin parents should go on strike against the teachers' union. A friend e-mailed me to say that the graduation rate in Milwaukee public schools is 46 percent. The graduation rate for African-Americans in Milwaukee public schools is 34 percent. Shouldn't somebody be protesting that?
Gov. Walker is facing a $3.6 billion budget deficit, and he wants state workers to pay one-half of their pension costs and 12.6 percent of their health benefits. Currently, most state employees pay nothing for their pensions and virtually nothing for their health insurance. That's an outrage.
Nationwide, state and local government unions have a 45 percent total-compensation advantage over their private-sector counterpart. With high-pay compensation and virtually no benefits co-pay, the politically arrogant unions are bankrupting America -- which by some estimates is suffering from $3 trillion in unfunded liabilities.
Exempting police, fire and state troopers, Walker would end collective bargaining over pensions and benefits for the rest. Collective bargaining for wages would still be permitted, but there would be no wage hikes above the consumer price index. Unions could still represent workers, but they could not force employees to pay dues. In exchange for this, Walker promises no furloughs or layoffs.
Indiana Gov. Mitch Daniels is also pushing a bill to limit the collective-bargaining rights of teachers for wages and wage-related benefits. Similar proposals are being discussed in Idaho and Tennessee. In Ohio, Gov. John Kasich wants to restrict union rights across the board for all state and local government workers. More generally, both Democratic and Republican governors across the country are taking on the extravagant pay of government unions.
Why? Because taxpayers won't stand for it anymore.
In an interesting twist on this story, even private unions are revolting against government unions. Private unions pay taxes, too. And they don't have near the total compensation of the public unions. It's no wonder they're fed up.
So, having lost badly in the last election, the government-union Democrats in Wisconsin have taken to the streets. This is a European-style revolt, like those seen in Greece, France and elsewhere. So it becomes greater than just a fiscal issue. It is becoming a law-and-order issue.
President Obama, who keeps telling us he's a budget cutter, has taken the side of the public unions. House Speaker John Boehner correctly rapped Obama's knuckles for this. If the state of Wisconsin voters elected a Chris Christie-type governor with a Republican legislature, then it is a local states' rights issue.
But does President Obama even know that the scope of collective bargaining for federal employees is sharply limited? According to the Manhattan Institute, federal workers are forbidden to collectively bargain for wages or benefits. Instead, pay increases are determined annually through legislation.
Meanwhile, Walker said it would be "wise" for President Obama to keep his attentions on Washington, not Wisconsin. "We're focused on balancing our budget," he said in a television interview. "It would be wise for the president and others in Washington to be focused on balancing their budget, which they're a long ways from doing."
Amen.
Obama should stay out. And Walker should stand tall and stick to his principles. A nationwide taxpayer revolt against public unions can save the country. Otherwise, the spiraling out-of-control costs of state public-union entitlements will destroy the local fisc, just as surely as the unreformed federal entitlements of Social Security and health care are wrecking our national finances.
Larry Kudlow
Lawrence Kudlow is host of CNBC’s “The Kudlow Report,” which airs nightly from 7 p.m. to 8 p.m.
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