Tag: unions

Grigori Rasputin Bailout

Sending billions of federal taxpayer dollars to teachers and other public school employees is the bailout that just won’t die. It’s been sliced, shot up in a firefight between Democrats, and even had a battle with food stamps, but it just can’t be killed!

Now, let’s be clear: This is not some wonderful crusade all about helping “the children.” It is pure political evil, a naked ploy to appease teachers’ unions and other public school employees that Democrats need motivated for the mid-term elections. It has to be, because the data are crystal clear: We’ve been adding staff by the truckload for decades without improving achievement one bit. Since 1970 (see the charts below) public school employment has increased 10 times faster than enrollment, while test scores have stagnated.

But suppose there were some rational reason to believe that we need to keep staffing levels sky-high despite getting no value for it. Lots of teachers’ jobs could be saved without a bailout if unions would just accept pay concessions like millions of the Americans who fund their salaries. But all too often, they won’t.

Sadly, this is all just part of the one education race that Washington is always running, and it absolutely isn’t to the top. It is the incessant race to buy votes. And guess what? Despite its reputation even among some conservatives, the Obama administration, just like Congress, is running this race at record speeds.

Argentina Sets an Example of Equality Before the Law for Latin America

Nowadays, it’s hard to find an instance where Argentina sets a positive example for the rest of Latin America. However, last night’s vote in that country’s Senate that legalizes same-sex marriages must be praised as that. Argentina has now become the first country in Latin America to recognize marriage equality for all couples.

The fight for marriage equality is just beginning in Latin America. Outside of Argentina, only Mexico City grants gay couples the right to marriage. Uruguay has granted civil union rights to same-sex couples since 2008, and last year in Colombia the Constitutional Court ruled that same-sex couples can be recognized as de facto unions, which enjoy all the rights of marriage. In December, Costa Rica might hold a referendum on this issue. While the referendum is promoted by opponents of gay civil unions, the vote could end up in a big upset victory for the gay community.

Latin America, with its deep-seated conservative Catholic tradition, is not fertile soil for the cause of gay equality. That is one more reason to applaud last night’s brave vote in Buenos Aires.

U.S. Mail Monopoly Wants Rate Hike

The long-term prospects for the U.S. Postal Service monopoly are bleak. To help stem the flow of red ink, the USPS intends to seek a rate increase. Only a government monopoly would try to raise prices when the demand for its services is plummeting. The rate increase will only push its already declining customer base to use cheaper, more efficient electronic alternatives.

The USPS is in need of drastic reform, but instead of looking at big picture, Congress is hung up on the USPS’s request to eliminate Saturday mail delivery service. In contrast, countries around the world are continuing to liberalize their postal markets by embracing competition and private sector involvement.

Britain is a good example.

In 1969, the British Post Office transformed from a government agency into a corporation, which would come to be known as Royal Mail. However, the company’s shares are owned by the government. In 2006, Royal Mail’s regulator removed its monopoly and opened British mail delivery to full competition, which the postal unions opposed.

Like their counterparts in the U.S., the British postal unions are a hindrance to effective and efficient postal management. With email and other technologies undermining traditional mail, neutering the inflexibility caused by unions is paramount for mail operations here and abroad.

According to the Daily Mail, the British government is now prepared to take the next step: privatization. In doing so, the government is considering transferring a portion of Royal Mail’s shares to its employees. Giving the employees ownership stakes would inhibit the unions’ ability to extract concessions that would negatively affect the company’s bottom line.

A popular argument against mail privatization in the U.S. is that an important service can’t be entrusted to self-interested capitalists concerned only with making a profit. But public officials are just as motivated by self-interest. The difference is that public officials aren’t subject to market forces, which compel private businesses to adapt and economize to survive.

For example, the third-ranking official at the USPS stepped down in May after it came to light that he awarded six-figure, no-bid contracts to former colleagues at various companies.

From the Washington Post:

A 64-page report by the Postal Service Office of Inspector General found that [Robert F.] Bernstock clashed with Postal Service lawyers over whether he could conduct outside business by using agency computers, e-mail and staff… Bernstock also used office telephones to conduct teleconferences and other meetings related to his private business holdings and also instructed staffers to conduct private work for him, investigators found.

The report details how Bernstock awarded non competitive contracts to five former business associates and a $1.5 million consultant deal with Goldman Sachs. He also violated company policy by negotiating a holiday bulk stamp sale agreement with Costco while owning $30,000 in company stock. The Postal Service requires officials owning more than $15,000 in a company’s stock to recuse themselves from any official dealings with the company.

Unfortunately, One Man’s “Paranoia” Is Everyone Else’s “Reality”

Finished with my woman
‘Cause she couldn’t help me with my mind
People think I’m insane
Because I am frowning all the time

- Black Sabbath, “Paranoid”

According to the Fordham Institute’s Chester Finn, I and others like me are “paranoid.” So why, like Ozzy Osbourne, am I “frowning all the time?” Because I look at decades of public schooling reality and, unlike Finn, see the tiny odds that “common” curriculum standards won’t become federal standards, gutted, and our crummy education system made even worse.

Finn’s rebuttal to my NRO piece skewering the push for national standards, unfortunately, takes the same tack he’s used for months: Assert that the standards proposed by the Common Core State Standards Initiative are better than what most states have produced on their own; say that adopting them is “voluntary;” and note that we’ve got to do something to improve the schools.

Let’s go one by one:

First, as Jay Greene has pointed out again and again, the objection to national standards is not that the proposed CCSSI standards are of poor quality (though not everyone, certainly, agrees with Finn’s glowing assessment of them). The objection is that once money is attached to them – once the “accountability” part of “standards and accountability” is activated – they will either be dumbed down or just rendered moot by a gamed-to-death accountability system. 

This kind of objection, by the way, is called “thinking a few steps ahead,” not “paranoia.”

It’s also called “learning from history.” By Fordham’s own, constant admission, most states have cruddy standards, and one major reason for this is that special interests like teachers’ unions – the groups most motivated to control public schooling politics because their members’ livelihoods come from the public schools – get them neutered. 

But if centralized, government control of standards at the state level almost never works, there is simply no good reason to believe that centralizing at the national level will be effective. Indeed, it will likely be worse with the federal government, whose money is driving this, in charge instead of states, and parents unable even to move to one of the handful of states that once had decent standards to get an acceptable education.

Next, let’s hit the the “voluntary” adoption assertion. Could we puh-leaze stop with this one! Yes, as I note in my NRO piece, adoption of the CCSSI standards is technically voluntary, just as states don’t have to follow the No Child Left Behind Act or, as Ben Boychuk points out in a terrific display of paranoia, the 21-year-old legal drinking age. All that states have to do to be free is “voluntarily” give up billions of federal dollars that came from their taxpaying citizens whether those citizens liked it or not! 

So right now, if states don’t want to sign on to national standards, they just have to give up on getting part of the $4.35 billion Race to the Top fund. And very likely in the near future, if President Obama has his way, they’ll just have to accept not getting part of about $14.5 billion in Elementary and Secondary Education Act money.

Some voluntarism….

Finally, there’s the “we’ve got to do something to fix the schools” argument. I certainly agree that the education system needs fixing. My point is that it makes absolutely no sense to look at fifty centralized, government systems, see that they don’t work, and then conclude that things would be better if we had just one centralized, government system. And no, that other nations have national standards proves nothing: Both those nations that beat us and those that we beat have such standards.

The crystal clear lesson for those who are willing to see it is that we need to decentralize control of education, especially by giving parents control over education funding, giving schools autonomy, and letting proven, market-based standards and accountability go to work. 

Oh, right.  All this using evidence and logic is probably just my paranoia kicking in again.

 

Minimum Wage Hikes Deserve Share of Blame for High Unemployment

Even though the Obama Administration claimed that squandering $800 billion on so-called stimulus would  keep the joblessness rate below 8 percent, the unemployment rate today is almost 10 percent. There are many reasons for the economy’s tepid performance, including a larger burden of government spending and the dampening effect of future tax rate increases (tax rates will jump significantly on January 1, 2011, when the 2003 tax cuts expire).

A closer look at the unemployment data, though , suggests that minimum wage laws also deserve a big share of the blame. In this Center for Freedom and Prosperity video, a former intern of mine (continuing a great tradition) explains that politicians destroyed jobs when they increased the minimum wage by more than 40 percent over a three-year period.

Mr. Divounguy is correct when he says businesses are not charities and that they only create jobs when they think a worker will generate net revenue. Higher minimum wages, needless to say, are especially destructive for people with poor work skills and limited work experience. This is why young people and minorities tend to suffer most - which is exactly what we see in the government data, with the teenage unemployment rates now at an astounding (and depressing) 26 percent level and blacks suffering from a joblessness rate of more than 15 percent.

In a free society, there should be no minimum wage law. From a philosophical perspective, such requirements interfere with the freedom of contract. In the imperfect world of politics, thought, the best we can hope for is that politicians occasionally do the right thing. Sadly, the recent minimum wage increases that have done so much damage were signed into law by President Bush. It’s worth noting that President Obama’s hands also are dirty on this issue, since he supported the job-killing measure when it passed the Senate in 2007. When the stupid party and the evil party both agree on a certain policy, that’s known as bipartisanship. In the real world, however, it’s called unemployment.

Feds Propose Forfeiture as Immigration Employer Sanction

As recent posts in this space indicate, advocates of individual liberty have a variety of views on the proper policy response to illegal immigration. Whatever the disagreements, I suspect there’s some degree of consensus that certain proposed remedies are entirely too Draconian. From the California Labor and Employment Law Blog:

The U.S. Attorneys Office in San Diego has recently criminally prosecuted a French bakery for allegedly engaging in an intentional pattern and practice of hiring unauthorized workers. As part of the indictment, the Government is seeking hefty monetary fines, prison time for the owner and management, and asset forfeiture of the entire business to the Government. While the Government does not have experience running a French bakery, they are getting very serious about enforcing I-9 regulations.

More details on the French Gourmet prosecution can be found at the San Diego Union-Tribune and Restaurant Hospitality.

When government began pushing for asset forfeiture powers, some imagined that the formidable power would remain mostly confined to use in, say, illegal drug or money laundering prosecutions. But that’s not how it has worked. And immigration is hardly the only area in which employers should be worried about the expanding bounds of criminalization. Bills pending in Congress would criminalize “misclassification” of employees – which commonly consists of disagreeing with the government or with labor unions as to whether particular employees should count as independent contractors not covered by overtime and similar federal labor laws. Are we far from the day when prosecutors will start proposing forfeitures against employers over such infractions?