Excerpts:
“‘What has the country so angry,” says Fred Siegel, “is the sense that crony capitalism has produced a population that lives off the rest of us without contributing. They’re right. It’s not paranoid.”
“”They’re on the same side of the street politically,” he says. “They’re both in favor of big government. The Wall Street people I talk to, they get it completely.” What he means is that the Bush and Obama administrations bailed out the large banks, and that economic stimulus and near-zero interest rates kept them flush. “Obama’s crony capitalism has been very good for New York’s crony capitalism,”
“The Great Society put the state on growth hormones. Less widely appreciated, the era gave birth to a powerful new political force, the public-sector union. For the first time in American history there was an interest dedicated wholly to lobbying for a larger government and the taxes and debt to pay for it.”
“”Spending is never ratcheted down. It’s unconnected to productivity. That can only be sustained by a boom or these extraordinary subsidies we’re getting now from the Federal Reserve. But that’s gonna stop at some point. And then what happens?”
“Many American localities are already at the crisis point. Rhode Island’s legislature last week sharply cut retirement benefits for current and retired public workers. “A 300% Democratic state!”
“On his first day in the governor’s mansion in 2005, Indiana’s Mitch Daniels also stopped deducting dues automatically; most workers chose not to pay. “The union has a guaranteed flow of income, which they then use to lobby the government,” says Mr. Siegel. This reform, he adds, “evens the playing field.”
“Dues money is the coin of political influence for organized labor. So not surprisingly, it is bankrolling the pushback.”
“Franklin Delano Roosevelt called the idea of strikes by government workers “unthinkable and intolerable.” New York Mayor Fiorello La Guardia said, “I do not want any of the pinochle club atmosphere to take hold among city workers.”
“”public sector unions are displacing political machines as the turnout mechanism for the Democratic Party. They are the new Tammany Hall.”
” the growing claims on the public purse by those who make little to no contribution to the economy have driven up taxes and the costs of doing business. The city creates jobs in tourism, hotels and restaurants at the lower end of the scale. “What we don’t create are private-sector middle-class jobs,” says Mr. Siegel. “We have a ladder with the middle rungs missing.”
“His feelings about Mayor Mike Bloomberg come unfiltered. He chose to court rather than confront the teacher unions and “the race racketeers” (in Mr. Siegel’s phrase) like Rev. Al Sharpton. “[Bloomberg] had the leverage. He didn’t have the guts. Instead of being influenced by interest groups, he buys the interest groups. The outcome is the same. The interest groups get what they want.”
“The Working Families Party, founded in 1998, is the political arm of government unions and a driver of turnout in local elections. Though little known outside New York, the influence of this third party can be seen on the City Council, which has come to tilt heavily left. So far, says Mr. Siegel, the party has a better political track record than Tammany. “With the exception of Giuliani, they’ve never lost an election. No matter who wins, they’re OK.”
” “We are what the tea party fears for the rest of the country. Crony capitalism, and low-end work, and the loss of mobility, and no place to do business if you’re a small business.”
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