Quotulatiousness

March 22, 2012

US Marine Corps facing 9% cut in troop strength and aviation

Filed under: Military, USA — Tags: , — Nicholas @ 08:18

Strategy Page has the details:

Because of budget cuts, the U.S. Marine Corps is losing four (of 27) infantry battalions and twelve (of 70) aircraft squadrons over the next five years. About half the marine aviation squadrons operate transport helicopters. Most of the fixed wing squadrons are bombers and fighters.

These cuts will result in jobs for 20,000 marines being eliminated, shrinking the marines to 182,000 personnel. Most of the units lost are from marine bases on the east coast. The Pacific, and China, is seen as the focus of Marine Corps attention in the future.

In effect the marines will lose nine percent of their personnel strength by the end of the decade. The marines want to do that without losing their most experienced and effective people. The idea is to keep officers and NCOs best able to expand the corps in the event of a national emergency, while at the same time maintaining, for as long as possible, a force that has lots of combat experience.

March 21, 2012

This is why Paul Ryan’s budget proposals will go nowhere

Filed under: Economics, Government, USA — Tags: , , — Nicholas @ 09:40

It’s because he’s not only requiring the middle classes to take a hit for the team, but he’s also trying to get rid of all the custom-crafted deductions, loopholes, shelters, and special favours in the tax code. Middle class voters have been sending their elected representatives to Washington to add to the special tax “tweaks” that disproportionally benefit the middle class. That’s how politicians ensure their re-election chances.

Unveiling his new budget proposal, Paul Ryan once again reminds us that he is one of the few men in Washington with guts and brains operating in harmony. His budget asks the big question in American politics: What is the middle class willing to give up in order to save the country?

I am afraid that the answer will be: Not very much.

[. . .]

The reaction to Ryan’s tax plan will be the truly telling thing. He proposes to create two relatively low tax brackets but to do so in a way that achieves revenue neutrality by eliminating most deductions and exclusions. Almost certainly this will mean reducing or eliminating the mortgage-interest deduction, deductions for state and local taxes, and deductions for charitable giving. (Ramesh’s beloved child tax credit probably will survive, unfortunately.) The Committee to Reinflate the Bubble will fight tooth and talon to defend the mortgage-interest deduction, and they’ll have a great many middle-class homeowners behind them.

H/T to Kathy Shaidle for the link.

Update: Nick Gillespie thinks that the Ryan budget proposal is merely an echo of Obama’s plan, not a serious attempt to get the government’s finances in order:

In brief, the Ryan plan is not as bad as [President Obama’s] budget, which wants to spend $3.8 trillion in FY2013 and envisions spending $5.8 trillion in FY2022. Over the next 10 years, Obama assumes that federal spending would amount to 22.5 percent of GDP while revenues would average just 19.2 percent of GDP. That ain’t no way to run a country.

In this sense, Ryan’s plan is slightly better but still doesn’t pass the laugh test. He would spend $3.5 trillion in 2013 and $4.9 trillion in 2022 (all figures in the post are in current dollars unless otherwise noted). Spending as an average of GDP would average 20 percent of GDP and revenue would amount to just 18.3 percent.

[. . .]

Yet Ryan’s plan is weak tea. Here we are, years into a governmental deficit situation that shows no sign of ending. How is it that Ryan and the Republican leadership cannot even dream of balancing a budget over 10 years’ time? All of the discussion of reforming entitlements and the tax code and everything else is really great and necessary — I mean that sincerely — but when you cannot envision a way of reducing government spending after a decade-plus of an unrestrained spending binge, then you are not serious about cutting government. If Milton Friedman was right that spending is the proper measure of the government’s size and scope in everybody’s life, then the establishment GOP is signaling what we knew all along: They are simply an echo of the Democratic Party.

March 7, 2012

Veterans Affairs to face disproportionally big cuts in federal budget

Filed under: Bureaucracy, Cancon, Economics, Military — Tags: , , , , , — Nicholas @ 10:32

That’s what Sean Bruyea thinks. Here’s his piece in the Globe & Mail:

Prime Minister Stephen Harper calls enlisting in the military the “highest form of public service.” Why then is Veterans Affairs, the department which cares for the Canadian Forces when its members are injured, facing the largest proportional cuts of any other public-service department?

The budget axe has been looming over all federal departments. The current “strategic and operational review” is a euphemism for reigning in a federal public service that is out of control. In the last 10 years, the core public service has grown by 34 per cent (versus 12 per cent at Veterans Affairs) and total government program expenses have swelled by 84 per cent (versus 67 per cent at Veterans Affairs).

Perhaps most galling for Canadians who have passed through two recessions in two decades and have seen no real growth in their earnings, public service salaries have increased by 22 per cent over and above inflation.

Few could credibly argue against the need for Ottawa to be managed better.

March 1, 2012

A Kickstarter campaign for … Greece

Filed under: Europe, Greece, Humour, Media — Tags: , , — Nicholas @ 13:12

I guess it’s about their last available option:

Greece is a small country in the south of Europe known for inventing democracy and western philosophy and for its national motto, “Release the Kraken!” Our shores are a popular destination for backpackers and tourists wishing to relax amid sun-drenched beaches by day and intoxicated British tourists by night.

We wish to continue this good work, but to do so our creditors are demanding €14.5 billion ($18.6 billion) by March 20. We do not have this money, nor do we think we can raise it in time: Our asset sales have gone nowhere, and the EU has nixed our plan to close shop and re-open a few blocks away as “Greeze”. And so we come to you, our friends, for help.

A donation of any amount is appreciated, and gifts are available for those who give at premium levels. We promise these funds will be used only to pay down debt, and any funds received above the requested amount will be rolled over to our next, inevitable Kickstarter campaign.

The plight of Britain under austerity

Filed under: Britain, Economics, Government, Media — Tags: , , , , , — Nicholas @ 10:03

Vuk Vukovic wonders why the notion that the British government has imposed austerity still has any traction in the media:

The UK had the one of the strongest fiscal stimuli (relative to the size of its economy) in the world as a response to the crisis, during the premiership of Gordon Brown. The result was making the situation much worse with a rising public debt and the third highest budget deficit in the world behind only Greece and Egypt in 2011, and behind Greece and Iceland in 2010. This comparison is striking since these countries were doing much worse than the UK at the time and were countries with highly unstable economies – Iceland before the restructuring, Greece whenever, and Egypt after a year-long revolution which saw the downfall of a dictator and an inability to consolidate ever since.

So the argument of Keynesians is that this wasn’t enough, and that Britain is crippled with austerity. The media is supporting the former view as well. Britain is running the hardest austerity policy in Europe and this is resulting in terrible growth performance and the inability to start up the recovery. However, Britain is far from austerity. Yes, some painful cuts have been made, tuitions were rising, unions were hit, wages in the public sector are stagnant, a lot of public sector workers have been laid off, but what does the government do with this saved up money? It “invests” in credit easing, housing subsidies, the youth contract and infrastructural projects. On the other hand, it’s guiding private sector investment and centrally planning credit, it announces an increase of the minimum wage, abolishing of the default retirement age, more regulation after claiming to remove regulation, the 50p tax rate and so on. None of these policies are policies aimed at growth. They are all part of a Keynesian response to the crisis.

After all, if one would just observe the spending data for the UK, it is still increasing, both relatively (as percent of GDP) and absolutely.

“You keep using that word. I do not think it means what you think it means.” To call a situation where government’s share of GDP is rising as “austerity” requires a brand new definition for the word.

February 29, 2012

The US Navy’s mirror-image cost problems with aircraft carriers

Filed under: Economics, Environment, Military, Technology — Tags: , , , — Nicholas @ 09:51

Strategy Page talks about the ever-rising cost of building aircraft carriers:

The first of the new Ford class aircraft carriers keeps getting more expensive. The price for the first one has gone up $161 million in the last ten months. The USS Gerald R Ford (CVN 78) was originally supposed to cost $8 billion, plus $5 billion for R&D (research and development of new technology and features unique to this class of ships). Now it appears that the cost of the Ford will not be $13 billion, but closer to $15 billion. The second and third ships of the class will cost less (construction plus some additional R&D). Thus the first three ships of the Ford class will cost a total of about $40 billion.

The current Nimitz-class carriers cost about half as much as the Fords. Both classes also require an air wing (48-50 fighters, plus airborne early-warning planes, electronic warfare aircraft, and anti-submarine helicopters), which costs another $3.5 billion. Three years ago, the USS George H.W. Bush (CVN 77), the last of the Nimitz class carriers, successfully completed its sea trails and was accepted by the U.S. Navy. The Bush was ready for its first deployment in 2010.

At those costs, it should be no surprise that few other navies operate carriers at all, and none operate the size of carrier that the US Navy does. Build costs are rising rapidly, and although the Ford class will carry significantly fewer crew members, they’ll still be very expensive to operate.

The costs don’t end there, however, as all warships have limited lifespans. Disposal of the retired ships is another area where costs are headed ever higher:

Last year, the U.S. Navy decided to go back to the breakers (where ships are broken up for scrap). Four retired aircraft carriers (USS Constellation, USS Forrestal, USS Independence and USS Saratoga) were to be scrapped instead of sunk, or simply allowed to rust away while tied up. These ships were taken out of service between 1993 and 2003 and have been waiting since then while a decision was made on their disposition. But there are seven carriers waiting to be scrapped and the navy has an economic disaster on its hands. Keeping carriers in reserve costs $100,000 a year, but it can cost over a billion dollars to scrap one of them.

Since the 1990s, sending warships to the scrap yard has not been considered a viable alternative. It’s all about pollution, bad press and cost. The largest warship to be scrapped, the 45,000 ton carrier USS Coral Sea, took until 2000 (seven years) to be broken up. Thus the process is not only expensive, it takes a long time. Then the navy discovered that the cost of scrapping the carrier USS Enterprise would be close to a billion dollars. This was largely the result of lots more environmental and safety regulations. With so many navy ships (especially nuclear subs) being broken up in the 1990s, and all these new regulations arriving, the cost of disposing of these ships skyrocketed. This was especially true with carriers.

[. . .]

It gets worse. With the really vast number of single hull tankers being scrapped and large numbers of old, smaller-capacity container ships laid up and likely to be offered for scrap fairly soon, the market for difficult-to-scrap naval ships is going to shrivel, and the price for scrap steel will drop. Efforts to get the navy include the costs of disposal in the budget for lifetime costs has never caught on, and now it’s obvious why not. The real nightmare begins in 2013, when the first nuclear powered carrier (the 93,000 ton USS Enterprise) is to be decommissioned. The cost of dismantling this ship (and disposing of radioactive components) will be close to $2 billion.

February 28, 2012

Did Greece get bailed out or did it default? A little from column A and a bit from column B

Filed under: Economics, Europe, Government, Greece, Politics — Tags: , , , — Nicholas @ 09:56

Detlev Schlichter explains what happened in the “big fat Greek bailout”:

Greece was bailed out for the second time in four months. Or did it default? Well, a bit of both, I guess.

All bondholders are equal. But some are more equal than others. If you are the ECB, your Greek bonds were exchanged, par for par, for new Greek bonds, and you can go on pretending that they are worth their principal amount. You won’t have to report a loss for now. But if you are a ‘private’ entity — and that is a rather loosely used term these days as it includes the banking industry which is either now partially owned by the state or to a considerable degree dependent on ongoing support from the lender-of-last resort — more than half your Greek investment was wiped out. So Greece defaulted. But as you ‘agreed’ to the ‘haircut’ it was in fact a ‘voluntary restructuring’, although you really had no choice.

[. . .]

I guess we shouldn’t lose sight of the fact that Greece’s economic model is fundamentally unsustainable, whichever way you cut it. Greece has been living beyond its means for a long time, and has managed to do so by flying under air-cover of the EMU project and with the tailwind of cheap credit and easy money. Spending by the Greek state accounts for more than half of registered economic activity, and a third of the workforce is employed by the public sector. ‘Activities’ are being subsumed under the heading of ‘Greek GDP’ that nobody would voluntarily pay for, that are to a large degree wasteful, and that are simply unaffordable under anything but the most bizarrely generous credit conditions, i.e. precisely those that Greece enjoyed from 2001 to 2008. Easy money has been used to paper over grave economic imbalances. Some of what is generously labelled ‘GDP’ should be discontinued — and fast.

To even suggest that such an economic model would be manageable if Greece, a country with about three quarters of the population of metropolitan Los Angeles but with less than half of L.A.’s GDP, only had its own paper currency and could inflate and devalue to its heart’s content, is economically illiterate. No country ever prospered by running budget deficits funded by the printing press or by creating domestic inflation. Devaluing your currency may give your exporters a shot in the arm — for about five minutes. But it scares your domestic savers away for years to come and severely diminishes your ability to keep or attract capital, the backbone of any sustainable economic model. To even try and attempt to ‘inflate away’ a debt load worth 160 percent of a generously calculated GDP would cause economic damage of gigantic proportion. One must have swallowed the Keynesian mythology of deficit-spending whole to believe that the country could borrow and print itself out of this mess. A proper default on its existing debt and rebuilding from a lower base — but with a hard currency — are the better options.

February 21, 2012

Greece: “now officially a ward of the international community”

Filed under: Economics, Europe, Government, Greece — Tags: , , , — Nicholas @ 10:40

Felix Salmon on the dire Greek financial future:

Greece is now officially a ward of the international community. It has no real independence when it comes to fiscal policy any more, and if everything goes according to plan, it’s not going to have any independence for many, many years to come. Here, for instance, is a little of the official Eurogroup statement:

    We therefore invite the Commission to significantly strengthen its Task Force for Greece, in particular through an enhanced and permanent presence on the ground in Greece… The Eurogroup also welcomes the stronger on site-monitoring capacity by the Commission to work in close and continuous cooperation with the Greek government in order to assist the Troika in assessing the conformity of measures that will be taken by the Greek government, thereby ensuring the timely and full implementation of the programme. The Eurogroup also welcomes Greece’s intention to put in place a mechanism that allows better tracing and monitoring of the official borrowing and internally-generated funds destined to service Greece’s debt by, under monitoring of the troika, paying an amount corresponding to the coming quarter’s debt service directly to a segregated account of Greece’s paying agent.

The problem, of course, is that all the observers and “segregated accounts” in the world can’t turn Greece’s economy around when it’s burdened with an overvalued currency and has no ability to implement any kind of stimulus. Quite the opposite: in order to get this deal done, Greece had to find yet another €325 million in “structural expenditure reductions”, and promise a huge amount of front-loaded austerity to boot.

February 18, 2012

Rex Murphy: The Drummond report should have been released before the Ontario election

Filed under: Cancon, Economics, Government, Media — Tags: , , , , — Nicholas @ 11:48

In the National Post, Rex Murphy expresses his displeasure that the Drummond report was not available for discussion during the last Ontario election campaign:

With the exception of the writings of the prophets Jeremiah and Isaiah at their bleakest, flavoured with a touch of H.P. Lovecraft on the days when that lightless mind was wrestling with a migraine, the recent meditations of Don Drummond on Ontario’s fiscal situation set the standard for prose that vibrates with gloom and foreboding.

The prophet Drummond is aware of this. He tried to prepare Ontario for the grim messages he was sending. At the press conference announcing his 529-page diagnosis of Ontario’s fiscal morbidity, he produced a remarkable understatement about his report and the 320 recommendations of cuts, freezes and cancellations that so enliven its bristling pages. Said Mr. Drummond (perhaps hiding a bitter smile): “This will strike many as a profoundly gloomy message.” Those listening to Mr. Drummond recalled P.G. Wodehouse: “I could see that, if not actually disgruntled, he was far from being gruntled.”

The Drummond report is scathing, frightening, a grim portrait, an indictment of Ontario’s fiscal management during the last eight years of McGuinty government. It is everything columnists in this paper have said and more. The Drummond analysis offers what we may call a spectrograph of Ontario’s perilous financial situation. It is also a devastatingly chilly portrait of imminent decline, should the government of this once dynamic, productive and industrious province fail to follow the prescription — 320 deep, demanding and painful recommendations that Mr. Drummond so vigorously recommends.

[. . .]

Politicians worry about cynicism and apathy among the electorate. Bringing out this report after sending the voters to the polls will reinforce the cynicism and bake the apathy. And why not? I have no doubt that Tory leader Tim Hudak or the NDP’s Andrea Horwath would have found a way, or been only too obliging, to see the report after the election, as well.

There should be an election do-over. Of course there will not be. Because to call an election now, and contest one on the real state of the economy, would be an unparalleled action of real candour and public valour. It would be asking Ontarians to vote on the reality of their government, not the spin of the parties. What politician would dare set so dangerous a precedent as that?

Of course, given how badly Tim Hudak and the Progressive Conservatives fought the last election, they’d still manage to fumble, flail, and falter just enough to let Mr. McGuinty keep his job. One can only imagine that the gods (along with the rest of Canada) hate Ontario and want to see more suffering.

“Somewhere in the near-eternal labyrinth of the Drummond report there must be evidence that the McGuinty’s Liberal government did something right over the last decade. If there is, I haven’t found it yet.”

Filed under: Cancon, Economics, Government, Politics — Tags: , , , , — Nicholas @ 00:01

Terence Corcoran brings the gloom on the Ontario government’s most likely response to the Drummond report:

Ontario, get ready for The Big McGuinty. The 562-page report from the government-appointed Commission on the Reform of Ontario’s Public Services, chaired by economist Don Drummond, has all the makings of a diversionary shell game in which everybody is directed to follow the pea of spending cuts while the real game is something else.

With attention now focused on carving Mr. Drummond’s 362 recommended slices off the great Ontario spending bologna, the real bait-and-switch objective, The Big McGuinty of this giant exercise in fiscal self-flagellation, is something else altogether: tax increases.

Does anybody seriously think the Liberal government of the Rev. Dalton McGuinty, after a decade of installing feel-good spending increases and extravagant policy schemes, is suddenly going to roll it all back and reverse a decade of ideological commitment to government intervention and liberal spending programs?

The Drummond report would require policy-backtracking on a vast scale. Somewhere in the near-eternal labyrinth of the Drummond report there must be evidence that the McGuinty’s Liberal government did something right over the last decade. If there is, I haven’t found it yet.

February 15, 2012

Stephen Gordon: The timing may be right for an austerity budget

Filed under: Cancon, Economics, Government, USA — Tags: , , — Nicholas @ 09:40

The federal government needs to rein in spending, and an “austerity” budget is intended to do that. Stephen Gordon points out that the US economy’s recent positive signs will increase the chances of budgetary success here in Canada:

For the first time in years, the economic news out of the U.S. is encouraging: a strong jobs report for January, a continuing fall in the number of initial claims for unemployment benefits, and even signs that its housing market may begin to revive in the near future. It may appear unseemly parochial to wonder what a U.S. recovery means for Canada, but that is the question that matters for Canadian policy making.

The recent recession should put to rest sayings such as “when the U.S. economy sneezes, the Canadian economy catches cold” to rest. The Canadian recession began almost a year after the U.S.’ did, was much less severe, and was over much more quickly. Nor was this an exceptional episode: the effect of a U.S. recession on Canada is much smaller than what is generally supposed.

The obverse side of this statement is that a strong U.S. recovery doesn’t guarantee strong economic growth in Canada. But it may be enough to offset the effects of an austerity program that will be much less austere than that implemented by the Chrétien Liberal government. In 1995, the federal structural deficit was on the order of four per cent of GDP, as opposed to 1 per cent now. Even if the Conservatives implement federal public-sector cuts similar in magnitude to those of the mid-1990s, transfers to provinces and individuals are to be spared.

February 3, 2012

Paul Wells: Harper and the Tories acted like “trust fund kids”

Filed under: Cancon, Economics, Government — Tags: , , , — Nicholas @ 11:06

An interesting column at Maclean’s this week, where Paul Wells recasts Stephen Harper’s recent speech at Davos as autobiographical confession:

This passage should be read as thinly veiled autobiography and confession. This week a former senior public servant told me that when the Conservatives came to power in 2006, they inherited structural surpluses, booming oil prices and shrinking public debt, and they acted the way trust-fund kids do. “These were like kids in a candy store who had all this allowance. ‘Wow, we can do all this stuff?’ ”

But don’t take my nameless source’s name for it. Take Jim Flaherty’s. His first budget speech, in 2006, carried the title “Focusing on Priorities.” And what did he describe as priorities? In order: “Providing immediate and substantial tax relief,” he said. “Encouraging the skilled trades.” “Families and communities.” “Investing in infrastructure.” “Security.” “Accountability.” “Expenditure management.” “Restoring fiscal balance for our Canadian federation.” And right down there at the bottom, “prosperity.” So you can’t say it wasn’t the No. 1 priority. It’s right there in ninth place.

In Flaherty’s 2007 budget speech, the word “growth” appeared once.

But sometimes the world changes and the trust fund goes bust. For Harper, that happened in the first week of December 2008, when he had to fight like a street gang to keep the job he thought he’d just been re-elected to. So much changed after that. He won in 2011 by running on the economy after years of running away from it. And now here he was in Davos to tell everyone about “the good, growth-oriented policies. The right, often tough choices.”

Flaherty is my local MP, so I’m well acquainted with his habit of talking like a conservative, but running the finance ministry like one of Pierre Trudeau’s acolytes. It must really be galling him that he has to act like a grown-up for the coming budget. As I’ve said more than once, if you factor out the military and foreign affairs aspects, there were few things that Harper did that wouldn’t have been done just as readily by Paul Martin. And I mean Martin as PM, not in his more successful guise as minister of finance.

January 27, 2012

NASA Moonbase by 2020: not likely

Filed under: Bureaucracy, Science, Space, Technology, USA — Tags: , , , — Nicholas @ 09:30

I’m just as eager to see more manned exploration of the solar system as the next person, but Newt Gingrich’s announcement the other day is just so much moonshine:

The basic idea is not actually as far-fetched as it sounds. NASA in 2006 announced plans to set up a colony on the south pole of the moon, in around 2020, as a base for further manned exploration of the solar system.

The problem for Gingrich, a space enthusiast with ideas dating back decades for zero-gravity honeymoons and lunar greenhouses, is that the 2008 financial crisis came along and turned feasible projects into pipe dreams.

“A lunar base by 2020 is a total fantasy,” John Logsdon, professor emeritus at George Washington University’s Space Policy Institute, told AFP.

“We got to the moon in the 1960s by spending over 4% of the federal budget on Apollo. NASA’s now at one-tenth of that level.”

The initial problem is both financial and organizational: for all the money being poured into NASA, each dollar is producing much less in the way of science and technology because of the calcified bureaucracy. NASA achieved great things during the Apollo program, but the bureausclerosis was setting in even before the first shuttle flew. To get the kind of results that the “old” NASA achieved, you’d have to blow it up and start from scratch — or better yet, privatize the whole shebang and get the bureaucracy out of the way of the entrepreneurs.

As Robert Zubrin pointed out in the February issue of Reason magazine, NASA has become far too concerned about safety — less out of genuine concern about the astronauts and other employees, but more because of the negative effects of bad PR on the next year’s budget. Under the current NASA management, none of the pre-shuttle launches would have been allowed because they were too dangerous (and we know how dangerous the shuttle was, in hindsight).

January 23, 2012

The EU culture war against Hungary

Filed under: Europe, Government, Media — Tags: , , , , , — Nicholas @ 10:07

Frank Furedi on the confused situation between the European Union bureaucracy and the government of Hungary:

Thirty or 40 years ago, the way that the EU and the IMF are behaving towards Hungary would have been described as a classic example of neo-colonial pressure. Unlike Greece, Hungary is not simply being lectured about the need to sort out its economy — it has also been subjected to a veritable culture war. As far as the EU and the Western media are concerned, the real crime of the Hungarian government is not so much its inept economic strategy as its promotion of cultural and political values that run counter to what is deemed correct in Brussels.

The Brussels bureaucracy has long regarded Hungary as a society in danger of being engulfed by white savages. In 2006, when people in Budapest rioted against their corrupt government, the EU and sections of the Western media described the demonstrators as right-wing mobs posing a threat to democratic values. At the time, Brussels weighed in to support its man in Budapest, Ferenc Gyurcsany, the Socialist prime minister. The fact that Gyurcsany had lied to cover up the scale of Hungary’s massive budget deficit, and that he had admitted his dishonesty to some of his close colleagues, did not stop his mates in the EU from singing his praises. Poul Nyrup Rasmussen, president of the Party of European Socialists, was quick to rush to Gyurcsany’s defence, claiming he was the ‘best man to make the reforms that Hungary needs’.

What the Western media overlooked was that the corrupt Gyurcsany government was complicit in creating the conditions for mass demoralisation and cynicism. It was this EU-backed regime that did much to unravel and damage public life in Hungary. Gyurcsany’s humiliating electoral defeat in 2010, and the triumph of Viktor Orban and his Fidesz party, meant that the EU’s placeman was replaced by an autocratic nationalist and populist prime minister.

[. . .]

But then, the EU itself has no inhibitions about imposing its values on to its target audiences. It, too, does not want its constitutional proposals held up to public scrutiny. Sometimes it rules by decree and refuses people’s requests to hold any referenda on EU-related matters, on the basis that the issues are far too complex for ordinary people to understand. Evidently, the EU commissioners have read their Voltaire. To recall — it was Voltaire who praised the Russian absolute monarch Catherine the Great’s invasion of Poland and celebrated her ability ‘to make fifty thousand men march into Poland to establish there toleration and liberty of conscience’. The EU does not have 50,000 men but it does have many other resources for executing its culture war. Voltaire was tragically mistaken in his belief that deploying coercion was a legitimate tool for forcing people to change their beliefs — but at least he actually believed in tolerance and freedom of conscience. In contrast, the EU technocracy has little time for genuine tolerance.

January 19, 2012

In spite of the large number of petitioners, recalling Wisconsin’s governor may not be a done deal

Filed under: Economics, Government, Politics, USA — Tags: , , , , — Nicholas @ 12:33

Christian Schneider in City Journal on the efforts underway in Wisconsin to recall Governor Scott Walker:

One morning last February, Wisconsin governor Scott Walker called his staff into his office. “Guys,” he warned, “it’s going to be a tough week.” Walker had recently sent a letter to state employees proposing steps — ranging from restricting collective bargaining to requiring workers to start contributing to their own pension accounts — to eliminate the state’s $3.6 billion deficit. That day in February was when Walker would announce his plan publicly.

It turned out to be a tough year. The state immediately erupted into a national spectacle, with tens of thousands of citizens, led by Wisconsin’s public-employee unions, seizing control of the capitol for weeks to protest the reforms. By early March, the crowds grew as big as 100,000, police estimated. Protesters set up encampments in the statehouse, openly drinking and engaging in drug use beneath the marble dome. Democratic state senators fled Wisconsin to prevent a vote on Walker’s plan. Eventually, the Senate did manage to pass the reforms, which survived a legal challenge and became law in July.

The unions aren’t done yet: they’re now trying to recall Walker from office. To do so, they will try to convince Wisconsin voters that Walker’s reforms have rendered the state ungovernable. But the evidence, so far, contradicts that claim—and Wisconsinites seem to realize it.

The fight between the Governor and the public unions matters more than it may seem: Wisconsin was the first state to allow civil service workers to unionize and has traditionally been seen as a strong union (and therefore also Democratic) state ever since. If unions can have some of their power trimmed back there, it will hearten the efforts of other state governments to follow suit.

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