Tag Archives: Political Contributions

Scott Walker’s plan to reform public sector unions

Political contributions to public sector unions
Political contributions to public sector unions (click for larger image)

(Source: OpenSecrets.org)

I am not sure if I really explained the importance of Scott Walker’s plan to rein in public sector unions in my last post.

Basically, public sector unions generate a lot of money from forced collection of union dues, and they turn around and use that money to donate to politicians who are in favor of growing government. Unions want bigger government, because they make more money if government grows.

This Wall Street Journal article explains that unions donate mostly to Democrats.

Excerpt:

Corporations and their employees… tend to spread their donations fairly evenly between the two major parties, unlike unions, which overwhelmingly assist Democrats. In 2008, Democrats received 55% of the $2 billion contributed by corporate PACs and company employees, according to the Center for Responsive Politics. Labor unions were responsible for $75 million in political donations, with 92% going to Democrats.

So how much money are we talking about?

Total political contributions in 2014 election cycle
Total political contributions in 2014 election cycle (click for larger image)

To see how much unions control government, take a look at this story from National Review, written by economist Veronique to Rugy.

It says:

  • The top campaign donor of the last 25 years is ActBlue, an online political-action committee dedicated to raising funds for Democrats. ActBlue’s political contributions, which total close to $100 million, are even more impressive when one realizes that it was only launched in 2004. That’s $100 million in ten years.
  • Fourteen labor unions were among the top 25 political campaign contributors.
  • Three public-sector unions were among the 14 labor groups: the American Federation of State, County, and Municipal Employees; the National Education Association; and the American Federation of Teachers. Their combined contributions amount to $150 million, or 15 percent of the top 25’s approximately $1 billion in donations since 1989.
  • Public- and private-sector unions contributed 55.6 percent — $552 million — of the top 25’s contributions.

Where does the money go? The Daily Caller notes:

“Nearly all of labor’s 2012 donations to candidates and parties – 90 percent – went to Democrats,” the report from CRP concluded. “Public sector unions, which include employees at all levels of government, donated $14.7 million to Democrats in 2014.”

But someone has a plan to do something about this: Scott Walker.

This Investors Business Daily article by economist Veronique de Rugy explains what he would do to the unions if elected President in 2016.

She writes:

Wisconsin Gov. Scott Walker just proposed a plan to overhaul the country’s labor laws, called “My Plan to Give Power to the People, Not the Union Bosses.”

It would do that by expanding employee choice and holding unions accountable to their members.

One of the main underlying themes of the Republican presidential hopeful’s private-sector reforms is transferring power and decision-making from unions to their members.

For instance, the plan would guarantee employees’ rights by strengthening secret-ballot elections. Under current law, unions have ways to work around the protections, making such elections less than secret. The change would protect workers from retaliation by not disclosing their choices to unions during workplace elections.

Though federal laws outlaw extortion, the Supreme Court has ruled that they usually do not apply to unions. Walker’s plan would change that to protect workers from threats, violence and extortion from unions.

Similarly, his reforms would protect whistleblowers who report wrongdoing on the part of a union from being fired or discriminated against.

[…][Public sector unions]… also make the government less effective and more expensive.

That’s why a President Walker would work with Congress to prohibit public employee unions altogether. Meanwhile, he would implement taxpayer and paycheck protections.

As Heritage Foundation labor economist James Sherk explained for National Review, “Walker proposes cracking down on the use of ‘union time’ — that is, allowing federal employees to work for their unions at taxpayer expense.

“He also wants to stop unions from using federal resources to collect the portion of dues that they spend on political causes and lobbying.”

Walker’s plan also would establish a nationwide right-to-work law, making voluntary union dues the default option for all private- and public-sector workers. It would give workers the freedom to choose whether they want to be in a union or not.

States that want to take this freedom away from their workers would have to affirmatively vote to opt out of right-to-work status.

[…]The Walker plan includes many more reforms, such as a repeal of the Davis-Bacon wage controls, which alone could save taxpayers nearly $13 billion over the next 10 years. If implemented, it would be a giant step toward freeing businesses, employers, workers and taxpayers from the incredible burden imposed on them by federal labor laws and union bosses.

Why should we believe that he’ll really do it? Well, unlike some of the talker candidates, Walker has already done it in his state. And it worked – a $3.6 billion dollar deficit was erased.

If you are concerned about the growth of government, and all that that entails, e.g. – higher taxes, massive spending, bloated welfare state, huge levels of corruption, government waste, abortion, gay marriage, etc – then you should know that all of that is driven by the political donations of unions.

And I don’t want anyone to think that union workers are the same as union bosses. In Wisconsin, as soon as the union workers got the right to work without having the pay union dues, the vast majority of them chose not to pay union dues.

How much did taxpayers lose in Obama’s GM bailout?

Investors Business Daily does the math on the GM bailout.

Excerpt:

Sale of the U.S. government’s stake in General Motors Corp. ends a sorry saga. Not only were Americans lied to about the costs, but the bailout underscores why replacing market forces with federal bailouts doesn’t work.

The Obama administration says it will unload 200 million shares — or about 40% of its holdings — back to GM right away. The rest, 300 million shares, are to be sold by March 2014.

[…]Well, GM on Wednesday said it will buy back the 200 million share government stake for $5.5 billion, or $27.50 a share.

The break-even point on the government’s total holdings was $53 a share. But now, with $20.9 billion in taxpayer funds left to pay off from 300 million shares, the break-even point has risen to $69.72 a share.

In other words, at current prices, taxpayers are sitting with a loss of 61%, or nearly $15 billion, on their investment.

So where did the money go, then?

According to a study last summer by the Heritage Foundation, the $80 billion auto bailout gave the UAW and its members nearly $27 billion due to the fact that GM couldn’t shed its outrageously expensive labor contracts, something it could have done in a normal bankruptcy.

As such, Obama didn’t bail out the auto industry; he bailed out the unions. Without the unions’ added costs, taxpayers would have owed nothing.

It’s not hard to see how this happened. The UAW and its affiliates give tens of millions of dollars each election cycle, almost entirely to Democrats.

This union influence explains why Obama’s auto czars, Steve Rattner and Ron Bloom, arranged a government bankruptcy for GM that flew in the face of hundreds of years of bankruptcy law and violated investor rights.

Bondholders took huge losses, while unions got a big chunk of ownership in GM stock that they weren’t legally entitled to.

In a shocking display of favoritism and blatant unfairness, GM’s union workers kept their pensions, while nonunion workers at GM spin-off Delphi lost theirs.

Those unions paid Obama back by working hard to get him re-elected. That’s how socialism works.

Unemployment rates are lower and wages are higher in right-to-work states

Map of right-to-work states: Michigan is #24
Map of right-to-work states: Michigan is #24

Previously, we saw that unemployment rates in right-to-work states were MUCH lower than in states that force workers to join unions and pay union dues in order to work.

Curtis sent me this article from Investors Business Daily, which looks at whether wages are lower in states that have right-to-work laws.

Excerpt:

The president says right-to-work laws mean “the right to work for less money.” So how does he explain the fact that incomes are up in RTW states while forced unionism is a proven job killer?

Campaigning Monday in Michigan as it stood poised to become the nation’s 24th right-to-work state, President Obama spoke the exact opposite of the truth to union workers at a Daimler Detroit Diesel plant in the birthplace of organized labor.

Is Obama telling the truth?

Let’s see:

According to Michigan’s Mackinac Center, using data taken from the Bureau of Economic Analysis and Bureau of Labor Statistics, private-sector, inflation-adjusted employee compensation in right-to-work states increased by 12% between 2001 and 2011 compared with just 3% over the same period in forced-unionization states.

These good wages came from good jobs. Employment in right-to-work states expanded 2.4% over the same stretch vs. a 3.4% decline in non-right-to-work states. Ironically, Obama is taking credit for jobs created in RTW states.

According to the National Institute for Labor Relations Research, right-to-work states (excluding Indiana, which passed a RTW law in early 2012) “were responsible for 72% of all net household job growth across the U.S. from June 2009 through September 2012.”

This is why people vote with their feet and move to these states. RTW states experienced large population gains of 15.3% from 2000 to 2010, compared to 5.9% in non-RTW states.

Obama did get one thing right, though, when he said the bills that passed both houses of the Michigan legislature “don’t have to do with economics. They have everything to do with politics.”

The president who fought Boeing’s expansion in RTW South Carolina knows it’s all about his keeping union dues flowing into Democratic coffers and maintaining the plush lifestyles of the union leaders who support him.

The right thing for Republicans to do when they get elected is to cut off all sources of funding for the Democrat Party. Right-to-work laws and school choice promote freedom and diminish the amount of power that left-wing, pro-abortion, pro-gay-marriage labor unions can exert. They will have less money, and with less money, they will have less influence on elections. Let the people decide, not the powerful, corrupt labor unions.

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