People seeking Privilege destroyed the City of Detroit

Posted by PITHOCRATES - March 16th, 2014

Week in Review

The history of the world is not pleasant.  It is one where brutal oppression has been the rule.  Where a king or a lord or a chieftain used brute force to establish a leadership position in a tribe.  Then that tribe followed that leader to conquer other people.  To rape and pillage those around them.  As these groups grew larger power concentrated in the few hands at the top.  Who lived very well.  As did the people who protected them.  But the people beyond this inner circle?  They were expendable.   And lived nowhere near as well.  For there just wasn’t enough for everyone to live like that.  Which is why people want power.  So they don’t have to live the miserable lives of the masses.

Times have changed.  But one thing hasn’t.  There is always a group of people that wants to live better than the masses.  Today some use politics to give themselves privilege.  Like the United Auto Workers.  And public sector unions.  Two things that led to the bankruptcy of Detroit.  See how people seeking privilege destroyed one of the greatest cities in the world.  The Motor City.  The city that won World War II.  See how it fell from glorious heights into the shell that it is today in this documentary (see BANKRUPT…. How Cronyism And Corruption Brought Down Detroit by FTR Media in conjunction with Ben Howe and Mister Smith Media posted 2/1/2014 on FTR Radio).

The message is clear.  And a clarion call for the elections this fall.  Detroit is a Democrat city.  And it has been a Democrat city for decades.  Detroit was a model of Democrat Party rule.  And that model failed.  As it is failing—or will fail—in other large Democrat cities.  And, perhaps, a Democrat-controlled United States.  Something we may be able to avoid if we stop voting for the party of privilege.  The Democrat Party.

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For an Idea of what National Health Care would be like just ride Metro-North

Posted by PITHOCRATES - February 23rd, 2014

Week in Review

People don’t want national health care.  Which is why President Obama lied when he said “If you like your health care plan, you can keep it.”  Because if he told the truth and told people they would lose the health care plans and doctors they liked and wanted to keep they would have opposed the Affordable Care Act (aka Obamacare) with a passion.  For they would have seen the Affordable Care Act as nothing but a prelude for national health care.  A health care system run by government.  And we know how well government runs things (see The Perils of Metro-North by Lynnley Browning posted 2/20/2014 on Newsweek).

The high-profile trains, run by the state of New York entity Metro North Commuter Railroad, convey middle-class commuters but also a sizable chunk of the 1 percent, all along a 74-mile stretch between New Haven, Conn., and New York City — to hedge funds in Connecticut and to global banks, consulting, design and advertising firms in Manhattan. But these days, the rail’s increasingly delay-plagued service to one of the planet’s largest metropolises seems less an odd contrast of Third World and First World and more a taste of Dante’s Inferno…

Epic frustration and stress have reached an inflection point for the estimated 136,600 weekday riders on Metro-North’s New Haven Line, the transportation lifeblood of America’s monied and professional class living in Connecticut and working in New York (though some riders reverse commute to hedge funds in Greenwich and banks in Stamford). Long plagued by outdated cars, sketchy, aging tracks and accusations of mismanagement, the commuter rail has seen its dwindling reputation tarnished further in recent months by mishaps and delays, some lasting hours in freezing, unheated cars…

The entire line needs $3.6 billion in urgent repairs, according to the Regional Plan Association, an independent think tank.

Trash and piles of metal parts line many tracks. Smelly cars dating to the 1970s shake passengers in stiff seats from side to side like livestock. Floors are perpetually grimy, and train cars are in short supply. Expensive equipment sits idle. “One day the toilet flooded and the water was just seeping into the vestibule,” recalls Noelle Villanueva, a trader at First New York Securities who commutes from Fairfield, Conn., a large commuter town.

Engineers – the people driving the trains – occasionally “overshoot” their stops and, if the tracks allow it, have to back up, leaving commuters like Lamorte to wonder if the people behind the wheel are asleep, or drunk. Trains come in unannounced on the wrong platform, sending riders to scamper like voles across crumbling overhead passageways to the correct platform. A 117-year-old bridge spanning the Norwalk River, in Norwalk, Conn., sports gaping holes beside the tracks. “They have a rescue boat, but the guy’s usually 1,000 feet away, fishing, so you’ll be dead by the time he gets to you,” says Bill, an ironworker for Metro-North. (He declined to give his last name, citing a fear of retaliation…)

Commuters are increasingly wondering when someone else might die. Late last July, as temperatures soared near 100 degrees, a train near Westport broke down in the afternoon, leaving passengers, including several pregnant women, trapped in unairconditioned cars whose doors and windows would not open…

The lack of communication – think digital signs at stations that almost uniformly announce “Good service” – irks riders, some of whom pay $400 a month and more.

Passenger rail is a horrible economic model.  The costs are so great that it is virtually impossible for it to work without government subsidies.  But in places like the island of Manhattan there are few viable transportation options.  For though costly it can move a lot of people into and out of a very congested city.  But the problem with passenger rail in big cities is all the other big city problems that come with it.  Unions, lack of competition, corruption, etc.  It’s so bad that even when some of the 136,600 weekday riders pay $400 a month (the equivalent of a car payment) the money is so mismanaged that wear and tear adds up on the system over time to the tune of $3.6 billion.  Which is why people don’t want national health care.  They don’t want a health care system operated like Metro-North.  Which is why they are so mad at President Obama for his lie about Obamacare.  And taking away the health care plans and doctors they liked and wanted to keep.

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Is Chicago the Next Detroit?

Posted by PITHOCRATES - February 9th, 2014

Week in Review

Another big American city is having ‘Detroit’ problems.  And may soon follow Detroit down the Road to Serfdom.  The warning signs are all there.  But will this big American city—Chicago—listen?  Well, Chicago like Detroit is a big Democrat city.  So, no.  They will not heed the warning signs.  And will make things even worse by going more ‘Detroit’ (see Chicago Votes to Go the Way of Detroit by Michael Auslin posted 2/6/2014 on National Review).

Chicago mayor Rahm Emanuel is increasingly a textbook example of how far the Democratic party has moved to the left since Bill Clinton’s day.

Emanuel, who cut his teeth in Clinton’s administration, just presided over a $1.9 billion increase in Chicago’s debt, only months after Moody’s downgraded the city’s bond ratings three notches based on its growing and unsustainable spending and debt obligations…

Old-line Democratic cities, it seems, have learned nothing from Detroit’s collapse. Wishful thinking, ignorance of the parallels, and misleading excuses are the common defenses trotted out by city administrators who have no intention of having to deal with the mess they have either made or worsened. Indeed, Emanuel explicitly rejected the Detroit comparison, arguing that, unlike the Motor City, which was fatally dependent on the auto industry, Chicago has “an extremely diverse economy where no one sector is more than 13 percent of the employment.”

That may be true now, but surely Emanuel knows that Illinois’s and Chicago’s high tax rates are causing a business exodus. The Chicago Tribune recently highlighted ten major companies threatening to leave Illinois and the Chicago area, including the Chicago Board of Trade, U.S. Cellular, and CME Group, the world’s biggest futures exchange company. Part of Chicago’s problem is being stuck in Illinois, which has the country’s third-highest unemployment rate, a dysfunctional state government, and crippling taxes that have led over 30 companies to cross over the state line to Indiana recently. But Chicago’s own borrowing and profligate pension promises will continue to eat away at its credit rating and desirability of doing business there. All this will help hollow out the city and its tax base, and eventually could lead to an all-too-familiar downward spiral once the productive elements of the city decide the benefits of staying don’t outweigh the costs of moving.

Of course the reason why Emanuel is throwing Chicago into this black hole of debt is because he is a Democrat.  And that’s how Democrats win elections.  By buying votes.  With a lot of good-paying jobs in the public sector.  Jobs with generous benefits.  Especially in retirement.  Thanks to profligate pension promises.  Requiring a large portion of city taxes to go to pay these underfunded pension obligations.  That are so underfunded they need to borrow money in addition to those high taxes to meet those pension obligations.

This is exactly what happened in Detroit.  The massive cost of their public sector became harder and harder to pay for.  So they began to fleece businesses as much as they could.  With higher taxes, fines, fees, regulations, etc.  Which only chased businesses out.  Making their problem worse.  For they never cut their spending.  Even though half of their tax base had disappeared they still tried to spend as if their tax base never shrunk from its high in the Sixties.  And we see where that led to.  Bankruptcy.  Something Chicago is now flirting with.  And a fate they will share if they don’t cut back their spending to what they can support without fleecing businesses out of the city.

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Democrats and Unions are impoverishing American Cities

Posted by PITHOCRATES - December 21st, 2013

Week in Review

Detroit had a massive public sector.  Lots of union government jobs.  With very generous benefits.  Then the city began losing population.  As the city shrank the public sector did not.  As the city could no longer support the public sector on tax revenue they turned to borrowing.  At her bankruptcy her pension obligations were in the billions.  And were just unsustainable.  With a lot of those retirees going to see huge cuts in their retirement benefits.  A first for a public sector union.  And one that may set a precedent for other impoverished cities (see Cities where poverty is soaring by Michael B. Sauter and Thomas C. Frohlich, 24WallSt.com, posted 12/16/2013 on Yahoo! Homes).

Many of these cities show a symptom of the regions hit hardest by the recession — a significant decline in real estate value. Nationally, the average home value during the three-year period of 2010-2012 was down by 9% compared to the previous three-year period. In eight of the 10 cities with soaring poverty rates, property values fell by at least 10%. Homes in Eastpointe lost nearly half of their value. In Inkster, Michigan, another city where poverty grew substantially, an average of 43.3% of homes were worth less than $50,000 between 2010 and 2012, compared to just 11.8% of homes during the 2007-2009 period…

Several of these cities were already struggling prior to the recession, in part because of their reliance on manufacturing. The industry had been declining for years, and the recession only made matters worse. In Salisbury, North Carolina, employment in manufacturing fell from 15.5% of all jobs to 8.3%. Goshen, Indiana, another city with a major increase in poverty, is heavily dependent on the auto industry — more than a third of the working population was employed in manufacturing between 2010 and 2012. According to Joe Frank at the Indiana Department of Workforce Development, this dependence had particularly dire consequences during the recession.

The Democrats are all Keynesians.  Who believe in government spending.  And keeping interest rates artificially low to stimulate the economy.  To encourage people to buy big expensive houses.  Just because interest rates are low.  So people did.  With mortgages so cheap everyone was getting them.  And as these buyers flooded the market housing prices soared.  Creating a great housing bubble.  Which collapsed when interest rates rose.  Resetting the rates on those subprime adjustable rate mortgages (ARMs).  Raising monthly payments.  Beyond what some people could afford.  Forcing them into bankruptcy.  Creating the subprime mortgage crisis.  And the collapse of housing prices.

The UAW made American cars so expensive people started buying the less expensive imports.  As most people don’t have UAW contracts giving them a fat paycheck and generous benefits.  Leaving them to get by on less than UAW workers.  Which meant they turned to the less costly imports.  Built by companies that didn’t have those great legacy costs of years of overly generous contracts that became unsustainable.  Pension costs and health care for retirees (which outnumbered active workers) forced GM and Chrysler to ask for a government bailout to avoid bankruptcy.  Asking the taxpayer to help them pay the generous pensions and health care costs of others.  Instead of bringing these benefits into line with the rest of America.

Democrats are Keynesians.  They believe in government intervention into the private sector economy.  And they protect their friends in unions to get their votes.  Raising costs for everyone else.  These policies, though, are just impoverishing American cities.  At least the ones dominated by unions and/or Democrats.

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Foreign Governments warn their people about traveling to Democrat Cities

Posted by PITHOCRATES - November 17th, 2013

Week in Review

An anti-capitalist just became the new mayor of New York City.  And it’s got a lot of people nervous.  Not the people who elected him.  But people who do business in the city.  Who came to the city after Mayor Rudy Giuliani cleaned it up.  Making it safe for families to walk the streets again.  And making Times Square the tourist attraction it is today.  Unlike the Seventies.  When prostitution and drugs filled Times Square.  And crime.  Lots and lots of crime.  Some of these business people are worried that New York City might return to what it was like in the Seventies.

Sadly, it is a trend of some of our larger cities to become dangerous.  Even foreign governments are warning their people about some American cities.  And even now those warnings include a much cleaner and safer New York City (see 16 American cities foreign governments warn their citizens about by Reid Wilson posted 11/14/2013 on The Washington Post GovBeat).

Planning a trip abroad? It’s probably best to check out the State Department’s list of travel warnings for countries with unsafe political situations. At the moment, the State Department has issued travel warnings for 34 countries, from the Central African Republic and El Salvador to Iraq and North Korea.

Well, just as State warns Americans about dangerous places to travel, so too do foreign ministries in other countries — and some countries warn their citizens to avoid heading to certain cities in the U.S. France, in particular, warns travelers to be careful in a large number of specific cities.

So what are these cities?  Boston, New York, Washington, Baltimore, Richmond, Pittsburgh, Cleveland, Detroit, Chicago, Houston, St. Louis, Atlanta, New Orleans, Miami, Los Angeles and El Paso.  Notice anything in common with these cities?  That’s right, they’re all Democrat cities.  The kind of cities that don’t have a Rudy Giuliani running them.  A mayor who is tough on crime.  To make their cities family-friendly.  And tourist-friendly.  The kind of city most of us would prefer to live in.  Which we could have if we, apparently, vote Republican.

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Chicago getting Serious about their Crime Wave of Running Red Lights

Posted by PITHOCRATES - October 13th, 2013

Week in Review

Some describe the gun violence problem in Chicago as epidemic.  Blaming the lack of jobs for young men.  And the lure of big money working in the drug trade.  Aware of this problem, the mayor of Chicago is focusing his efforts on catching those people running red lights (see New Chicago speed cameras capture more than 200,000 violations in just 45 days by Eric Pfeiffer posted 10/12/2013 on Yahoo! News).

Newly installed speed cameras in Chicago have tallied up some eye-catching numbers, with more than 200,000 violations captured at just four sites ” during the past 45 days…

So far, the city has only been issuing warnings to errant drivers caught on camera. If those warnings had been actual tickets, they would have amounted to $13.9 million in fines in just over a month. Chicago Mayor Rahm Emanuel has said he expects the new speed camera system to generate about $15 million in revenue before the end of the year, once the warning system transitions to issuing actual tickets after October 21.

An analysis from ABC News says that if the violations remain roughly on the same pace through 2014, the program will generate revenue “well above” the $40 to $60 million estimated by Emanuel…

Chicago has said that it plans to use the money generated from its speed cameras to invest in safety initiatives, after school programs, job initiatives and other funding projects.

Really?  You would think that he would want to use that $40-$60 million to shrink the $330 million budget deficit.  Or to apply to their $19.5 billion in unfunded pension liabilities for city, municipal, police, fire and labor workers.  You’d think these were the reasons to install these cameras.  Strictly for the revenue.  For, let’s face it, once drivers get burnt a few times they’re all going to start driving the speed limit.  And that revenue won’t be anywhere near their rosy projections.

Assume they hit their revenue target, though.  Is that a good thing?  Pulling $40-$60 million of economic activity out of the Chicago economy?  I mean, if that money goes to the government no one will be spending it in local businesses.  Perhaps causing some businesses to lay off some workers.  Or, at the least, preventing businesses from growing and hiring new workers.

Also, those cameras may cause some people to slam on the breaks at yellow lights. Paranoid about getting a ticket.  And seeing their insurance rates rise.  Which can be a problem for the car behind them.  Whose driver is not expecting anyone to slam on the brakes the moment the light turns from green to yellow.

You know what would be a better idea?  Balancing their budget.  Only promising pensions they can afford to pay.  And NOT spending the money in pension trust funds.  You do that and you won’t need any revenue-generating camera system.  And you don’t have to anger the police union for replacing cops with cameras.

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To avoid Detroit’s Fate Chicago looks at Revenue Generation from Speed Cameras

Posted by PITHOCRATES - August 11th, 2013

Week in Review

The City of Detroit bankruptcy shows how the massive costs of a city’s public sector are strangling these cities.  Promises of generous pensions for a long retirement and free health insurance up until you die are just promises these cities can’t pay for.  So some (like Detroit) raised their tax rates so high that people left the city in droves.  Further reducing the tax base.  While other cities turn to other revenue generating schemes (see Speeders were plentiful in camera test run by David Kidwell and Bill Ruthhart posted 8/12/2013 on the Chicago Tribune).

As Mayor Rahm Emanuel rolls out his long-delayed speed camera plan, new numbers his office released suggest that drivers who speed in Chicago could rack up way more in fines than a cash-starved City Hall initially projected.

The mayor had hoped to bring in $30 million this year. But results from a monthlong test of the automated camera system indicate the city could reap well into the hundreds of millions of dollars in the program’s first year.

City transportation officials argue that estimate is overblown, but the test period statistics the mayor’s office released Friday reinvigorated critics who argue that the program is more of a cash grab than the child safety measure Emanuel sold it as…

City transportation officials put estimated first-year revenues at $40 million to $60 million, arguing that several factors will cut down on the number of tickets actually issued.

For starters, they argue that it’s incorrect to estimate revenues based on the test program. They suggest the money will never reach into the hundreds of millions of dollars because of a number of factors. The most important: the fast learning curve of Chicago drivers…

Ald. Leslie Hairston, 5th, who voted against the speed camera program, said the number of speeders captured on the test cameras supports her insistence that the main motivation is to generate more city revenue.

“I guess this is just going to be a city for wealthy people, that’s where we’re headed,” she said…

The speed camera rollout was scheduled for closer to the start of the year, but it was delayed after City Hall came under scrutiny following Tribune reports of an alleged bribery scandal involving its 10-year-old red light camera program.

Making the streets safer for children is a noble goal.  But like their red light camera program it’s all about the Benjamins.  The money.  And they love cameras because they can rake in the money without having to put more costly public sector workers (i.e., cops) onto the streets.  That is, they’re outsourcing these costly union jobs to machines.  To minimize their labor costs.  Just like corporations try to minimize their labor costs.  Because union workers are very, very expensive.

But like every government revenue policy they’ve overstated the expected revenue from these cameras.  Just like a higher cigarette tax rate reduces cigarette tax revenue.  Taxes, and these revenue cameras, change human behavior.  Actually achieving the stated purpose for them (better health if people don’t smoke and safer streets if speeders are punished).  Which means though they have a burst of revenue in the beginning it will eventually taper away.  Requiring a new revenue generating scheme.  And then another one to replace that one.  And so on.  On and on.  Forever and forever.  Instead of doing the simpler thing.  And the thing that would work best.  Forever and forever.  Just stop spending so much.

If the public sector union enjoyed pensions and health care benefits like they do in the private sector there would be no Detroits going bankrupt.  Because there would be no generational theft.  These workers would provide their own pensions—401(k)s—and pay a much larger portion of their health care expense.  And they would work into their Sixties (or more) like the rest of America.  Instead of retiring in their 40s or 50s.  To enjoy a retirement that in some cases lasts longer than their working career.  This would solve the budget problems of the big cities.  Instead of passing it on to future taxpayers who were not included in those generous contract negotiations that they find themselves stuck paying for.

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Unfunded Pension and Retire Health Care Liabilities are a Problem for more Cities than just Detroit

Posted by PITHOCRATES - July 28th, 2013

Week in Review

The problem all our big cities are having is the cost of pension and retiree health care for their public sectors.  These cities made ridiculous promises during their contract negotiations with their public sector unions.  Promising them generous pension and health care benefits for life for retirees.  Benefits a later generation would have to pay for.  Which is why these cities are imploding under these costs.  And why Detroit filed bankruptcy.  These cities never put away the money for these future benefits because they were just too costly.  Besides, they no doubt thought, when the bill comes due it will be someone else’s problem.  And that’s where we are today.

How bad is it?  Really bad.  Especially in Detroit.  A city that has about half the population it had when it entered into those agreements.  And nowhere near the automotive industry it had back then.  A race riot in 1967 caused a white flight.  And the black middle class would follow years later.  As the jobs left Detroit for the suburbs.  And the people followed those jobs out of the city.  Just decimating the tax base that has to pay those unfunded benefits (see The Retirement Surprise In Detroit’s Bankruptcy by Robert C. Pozen posted 7/25/2013 on Brookings).

When Detroit recently filed for bankruptcy, one number surprised a lot of observers–$6.4 billion in other post-employment benefits (OPEB). OPEB is primarily comprised of unfunded obligations to pay health care costs for municipal employees.

By contrast, the unfunded pension obligations of Detroit were $3 billion–less than half the size of its OPEB…

The Pew Charitable Trust did a study in 2013 of both pension and OPEB shortfalls in the 30 largest cities in the United States. The three cities other than Detroit with the largest pension shortfalls were:

$14,302 per city household in New York City;
$12,170 per city household in Philadelphia; and
$11,389 per city household in Portland, Oregon.

But the shortfalls for OPEB, primarily healthcare obligations, were significantly larger. According to Pew, the three cities other than Detroit with the largest OPEB shortfalls were:

$22,857 per city household in New York City,
$18,962 per city household in Boston
$13,487 per city household in San Francisco.

These numbers are staggering.  Based on the U.S. Census, there are about 264,209 households in Detroit.  If you divide the total unfunded pension and health care costs by the number of households you get $35,578.  That is, to pay this outstanding debt it will cost each household in the city of Detroit $35,578.  Which will be very difficult to do when the median household income in Detroit is $27, 862.

Those in the union say these people are owed their retirement and health care benefits.  Because they made a deal.  But they didn’t make a deal with the people currently paying the taxes.  What this amounts to is generational theft.  Like all those municipal pensions and health care benefits.  For when they made those generous agreements the people who ultimately had to pay them weren’t in the room when they signed those contracts.  In fact they weren’t even born yet.  The people demanding their benefits now and their union representation apparently had no problem sticking it to future generations.  They were the ones in the room when they signed those contracts.  And didn’t give the people stuck paying for their benefits a second thought.

All big cities with big public sectors have the same problem.  They may not be ‘Detroit’ bad but they have bills that they won’t be able to pay.  There are about 100 U.S. cities with a population of a quarter million or more.  If each one of them had this problem that’s about $1 trillion in unfunded benefits just in these cities alone.  With trillion dollar deficits already, Obamacare coming on line and Social Security and Medicare projected to go broke the federal government just won’t be able to bail these cities out.  Perhaps bringing the days of generational theft to an end.  Which may be the only good thing to come from a wave of municipal bankruptcies.

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Washington D.C. and Detroit say ‘No’ to Wal-Mart because they don’t need Jobs or Shelves full of Low-Priced Goods

Posted by PITHOCRATES - July 20th, 2013

Week in Review

The Democrats hate Wal-Mart.  As do unions.  Because Wal-Mart stores do not have union labor.  Unions hate that.  And because Democrats and unions are joined at the hip, Democrats hate what unions hate.  Which is why you won’t find Wal-Mart stores in big Democrat cities.  Because the Democrats do everything they can to keep them out.  Even writing laws specifically targeting Wal-Mart (see Trouble in store: Why Walmart has failed to woo Washington by Rupert Cornwell posted 7/21/2013 on The Independent).

Walmart has been wooing [Washington D.C.] for years, and in 2010 announced plans to open four stores there, a number subsequently raised to six. Everything was going swimmingly, with work already started on three of the sites, until earlier this month, when the council passed its Large Retailer Accountability Act, otherwise known as “Get Walmart”.

Under it, non-unionised stores with a commercial space of 75,000ft or more – ie Walmart – will henceforth have to pay employees at least $12.50 (£8.20) an hour, compared with the city’s existing minimum wage of $8.25, and the national one of just $7.25 an hour. The company retorted by threatening to scrap three of the planned stores at once, and perhaps abandon the three where construction has begun too, causing the loss of up to 1,800 new jobs…

The case for Walmart is strong – that its stores provide working-class Americans (and many wealthier ones too) with good service and a broad selection of goods “at the lowest prices possible”, to use the words of old Sam Walton, who opened his first store in Rogers, Arkansas, in 1962. And it provides jobs: 1.4 million of them in the US alone…

Nor is Washington DC alone in feeling that way. Five of the country’s other largest cities – San Francisco, Detroit, Seattle, Boston and, above all, New York – have also said no. “As long as Walmart’s behaviour remains the same, they’re not welcome in New York City,” says Christine Quinn, the New York City council speaker who may well be the next mayor. “New York isn’t changing. Walmart has to change.”

Not by coincidence all those cities, like DC, are Democratic strongholds where unions are strong. They are liberal, socially “progressive” and, by definition, urban, while Walmart’s genes are southern, conservative and suburban.

Detroit said ‘no’ to Wal-Mart?  The city that just filed the largest municipal bankruptcy in history said they don’t need jobs or low prices on food, clothing, pharmacy and household goods?  If you’re looking for the answer to why Detroit is in the mess it is in this is your answer.  The Democrat stronghold in Detroit got so anti-business that it chased all the jobs out of the city.  Once the jobs left the people soon followed.  First the whites.  Accelerating their ‘white-flight’ following the Detroit riots.  While the blacks held on.  But after 20 years (1974 – 1994) of Coleman A. Young they gave up, too.  For they don’t come further left than Coleman A. Young.  And when you’re that far left you’re no friend to business.  So businesses stay away.  As do their jobs.

The black middle class followed the whites out of Detroit.  In pursuit of greener pastures.  And jobs.  Leaving Detroit with half the population it once had.  Impoverished.  And more anti-business than ever.  Which is why they said ‘no’ to Wal-Mart.  Because Wal-Mart isn’t union.  And the two largest employers in the city, the City of Detroit and the Detroit Public Schools, are union strongholds.  So they protected their high pay and benefit packages.  By keeping nonunion jobs out of the city.  While thinking nothing of the unemployed masses in the city.  Helping to keep the unemployment rate in Detroit well above the national average.  While the unemployed masses would have loved to see up to six new Wal-Mart stores (or more) opening in the city.  The 1,800 new jobs (or more) that would have came with them.  And shelves full of food, clothing, pharmacy and household goods at low prices that their Wal-Mart paycheck could easily afford.  But no.  Wal-Mart is not union.  So the people of Detroit have to stay unemployed.  And impoverished.

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Greedy Public Sector Unions in San Francisco demand Taxpayers pay them More

Posted by PITHOCRATES - July 7th, 2013

Week in Review

FDR was pro-union.  He was all for tearing businesses a new one when it came to collective bargaining.  For he didn’t like those royalists.  Greedy businessmen who put their profits ahead of their employees.  While making them work in horrible conditions.  For long hours.  For little pay.  The greedy little profit whores they were.  But FDR drew a line when it came to government workers.  Because taxpayers pay government workers.  And it just didn’t look right for government unions to call the taxpayers greedy little profit whores.  So FDR opposed unionizing government workers.  Because you just can’t have government workers tear the taxpayers a new one to enrich themselves at the taxpayers’ expense.  Something was just wrong with that.  But that was then.  This is now (see San Francisco Bart rail strike ends as contract extended posted 7/5/2013 on BBC News US and Canada).

San Francisco Bay’s transit rail service has resumed after two labour unions called off a strike.

The four-day walkout came to an end after both sides in the Bay Area Rapid Transit (Bart) dispute agreed to a one-month extension of the current contract while bargaining continues…

Talks between the two sides had resumed as early as Tuesday, but key sticking points include salaries, as well as employee costs for pensions and healthcare…

Bart has said workers from the two unions earn on average $71,000 (£47,500) in base salary and $11,000 in overtime annually…

The president of one of the striking unions, the Amalgamated Transit Union, struck a defiant tone.

“We’re not going to let them hijack us and the riding public,” Antonette Bryant said, as she apologised to commuters for the disruption.

So these union workers make $88,000 between base salary and overtime.  Being that train schedules are pretty fixed so must that overtime.  That’s well above the median household income of about $50,000.  Yet on top of that $88,000 they get pension and health care benefits.  And some pretty nice ones at that.  Which is why everyone wants to get into these unions.  While most Americans have to put something aside for their retirement from that median household income.  As well as pay a percentage of their health insurance premium.  Unlike public sector unions.  Who just have to go on strike to get the city to increase taxes on the taxpayers.  So the city can afford to pay those generous pay and benefit packages.

Hijack the riding public?  By opposing these union demands management is trying to prevent the unions from hijacking the riding public.  For when you add in the pension and health care benefits they’re already making about twice what the riding public is earning.  Making it difficult to call the taxpayers the greedy little profit whores here.  Yet they are because they won’t consent to pay more.  Which they can do by only having less in their personal lives.  Which certainly isn’t fair.  Especially considering that a lot of these people don’t even ride the damn trains.

www.PITHOCRATES.com

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