Wednesday, June 6, 2012

Defeat of Special Interests

(Updated: 6/8/12)

The victory of Governor Scott Walker in the recall election in Wisconsin was a resounding defeat of special interests.  That's right, one of the biggest special interest groups in the country was soundly rejected...labor unions, and public service unions in particular.  The People of Wisconsin, in large numbers, turned out to reject the ridiculous recall attempt waged by the unions in the state.

According to the Bureau of Labor Statistics, only about 11.8 percent of all workers nationally belong to a union.  In Wisconsin, the number is about 13.3 percent.  Looking at union membership by sector, it is even more interesting.  The percentage of all private sector employees that belong to a union was only 6.9% in 2011 compared to 37% of all public sector workers.  Union membership has been falling for years.  In fact, The New York Times reported that union membership has fallen to "the lowest rate in more than 70 years."  The vast majority of Americans are not in a union and don't want to be in one.  And so, they really don't care about the unions.

Even the politicians, it seems, don't seem to see the union issues of key importance, as noted in an article in Mother Jones:
"In an interview, an official with the Democratic Party of Wisconsin downplayed the importance of the anti-union provisions in Walker's 'budget repair' bill in the Democrats' broader recall strategy. 'Collective bargaining is not moving people,' says Graeme Zielinski, a Democratic Party spokesman. And in the party's new strategy memo for defeating Walker, there's little mention of collective bargaining or organized labor in the Democrats' messaging plans."
But while unionism is on the decline, union special interest groups continue to be some of the largest donors to national political candidates.  According to National Review Online, "the biggest 'outside group' spenders in the 2012 elections aren't oil and gas companies, Sheldon Adelson, the Koch brothers, or hedge funds. No, as reported by the Associated Press, the biggest spender in the 2012 elections will likely be Big Labor."  In fact, according to OpenSecrets.org, the American Federation of State, County, and Municipal Employees (AFSCME), one of the biggest forces behind the Walker recall effort, is the third all time largest donor, with 92% of their funds going to Democrats and only 1% to Republicans.  In the 2008 election cycle alone, AFSCME was the 6th largest donor.  The National Education Association (NEA), another public sector union, was the largest.

What does this mean, in real terms.  Public sector workers contributing money to politicians is a conflict of interest.  Think about it.  If this happened in the private sector, it would be illegal.  If employees gave money to get their bosses promoted, then expect favorable treatment in return, everyone would be fired at least.  Steve Huntly of the Chicago Sun Times describes the issue this way:
"Collective bargaining for government employees can never survive much scrutiny. Their unions are by their nature in conflict with the interests of taxpayer. Unions use their numbers, their voting booth clout and their members’ dues to elect politicians who then return the favor in contract negotiations. Liberal good government types constantly advocate bans against government contracts for businesses that make significant campaign contributions to politicians. But they fall silent on the inherent conflict of interest in labor contracts negotiated by public employee unions and the politicians they help elect. Talk about a corrupt bargain — that’s the very definition of one.
Taxpayers have grown weary of financing generous benefits that most of them never see in their lives. President Barack Obama must recognize that voter attitudes on this are changing. Despite the appeals of Wisconsin Democrats for a big show of support, the closest Obama came to Wisconsin was flying over the state recently on his way to a fund-raising dinner in Minneapolis." 
Wisconsin was on the verge of insolvency.  Scott Walker said he was willing to do what was necessary to fix the problem.  He was elected by the people of Wisconsin.  He did exactly what he said he would do...stand up against the outrageous demands and costs of the public unions.  The economy and budget have begun to improve.  The unions did not like the results of the election because it threatened their power in the government.  They organized the recall effort with much wailing and gnashing of teeth about how terrible Walker was for the working men and women of Wisconsin.  But, those same working men and women turned out to reject their special interest, class warfare rhetoric.

 Neither labor unions or crony capitalists should have undue influence on government through their ability to buy favor.  The American people are waking up.  They are seeing through the media fog.  Scott Walker's victory was a clear blow against the public sector union special interests.  Let's hope this trend continues and voters continue to look past the special interests and vote for the best interest of their States and Country.