Unions unloading on Prop. 32

Oct. 25, 2012

By John Seiler

The latest report shows California’s ultra-powerful government-worker unions surpassing $60 million in donations to stop Proposition 32, which would curb their clout. They obviously have shifted their focus from Proposition 30, Gov. Jerry Brown’s $8.5 billion tax increase, to focus on Prop. 32.

Sure, they would like to get that money to fund their lucrative pay, perks and pensions. But more important is keeping their power. Prop. 30 looks like a loser anyway. That will mean budget cuts, mostly to new union members. But power is the real game, and keeping it must be maintained at all costs.

But the unions’ power already peaked in 2010 when they got Brown elected. Eventually, probably in 2014, they will gain two-thirds’ Democratic control of both houses of the California Legislature. The unions then could impose tax increases without finagling any Republican support.

But California at this point is taxed-out. Even if tax rates are raised, the tax revenues won’t follow. More businesses and jobs will just leave the state. Because there’s no more money, that means the next recession, when it hits, will slam state budgets again, forcing cuts in the state and local government work forces.

Recession

I suspect that the next recession will hit in 2013, regardless of who wins the presidency. Recessions and depressions strike every four to six years. The last one started in 2007, five years ago. So we’re about due.

The “fiscal cliff” is about to hit on Jan. 1, with taxes going up almost no matter what, including on the middle class. So a lot of economic activity is taking place this year, in 2012, in the lower tax climate, providing a modest boost just before the election (that’s a coincidence!). But that favorable tax climate expires in 2013.

The Federal Reserve Board also is going to have to start increasing interest rates, if not in 2013, then in 2014. You can’t keep interest rates forever at close to 0 percent. A jump in interest rates will slam the housing market, sparking another recession.

The public sector in America, and especially in California, has grown rapidly for 80 years, since the New Deal. But America now faces leaner competition from China, Brazil, India, etc.

The productive, private part of the U.S. economy no longer can sustain the parasitic, government part at such high levels.

The unions likely will win by defeating Prop. 32 on election day, but they will lose in the end because uninhibited power eventually is brought down.

6 comments

Write a comment
  1. Dyspeptic
    Dyspeptic 25 October, 2012, 10:42

    How is it that even in a deep blue state like Wisconsin the libtards can be thwarted, but here in Crazyfornia they seem invincible? Is their something in the water here? Too much sunshine on the brain maybe?

    Reply this comment
  2. Hondo
    Hondo 25 October, 2012, 12:23

    No matter if 30 passes or not, there is simply no more money left to steal. The wall of debt Moonbeam talked about is here, which is why he is pushing for a tax increase, knowing that so many tax increases before have failed.
    The unions can defeat 32, but weather or not 30 passes, there is simply no more money to pay the idiotic public union wages and pensions. Huge cuts in services are coming. Services in a welfare state. There is no Republican in that cat fight. If the voters turn down the tax increases, expect to see a brawl at the left, between the hugely over paid public unions, and the poor and the welfare class, the illegal aliens and the truly needy who are going to be facing gigantic cuts, but none to the unions. Schools will be cut by two weeks, but union pay will be not.
    It doesn’t matter if 32 fails, there is no more money to fund the unions and the schools and the welfare state.
    Hondo…….

    Reply this comment
  3. Dyspeptic
    Dyspeptic 25 October, 2012, 14:00

    “If the voters turn down the tax increases, expect to see a brawl at the left”

    That will be fun to watch. But be forewarned, we can also expect to see a rapid decline in infrastructure maintenance, public safety and skyrocketing fees for stuff we have already paid for with taxes. Jerry & Co. will empty out the prisons, close state parks, cut back on vital services and claim they had to do it because of budget constraints.

    While we the people are fighting the crime wave caused by Jerry’s Kids, Jerry will be sipping Dom Perignon at the grand opening of the Train To Nowhere. The Overlords will take it out on us in a very spiteful way ’cause it’s how they roll.

    Reply this comment
  4. Ulysses Uhaul
    Ulysses Uhaul 25 October, 2012, 16:47

    CWD posters worried…..but to no avail….you’ll get used to shucking out a few bucks for quality government services!

    Reply this comment
  5. SkippingDog
    SkippingDog 25 October, 2012, 23:54

    The point of Prop 32 was always to divert the funds and efforts of the public employee unions and labor organizations from supporting Prop 30. Whether it passes or not, it has been successful in that mission.

    Reply this comment
  6. a frequent reader
    a frequent reader 26 October, 2012, 21:34

    quality coming out of Sacramento is comparable to the excrement of elephants…the latter being tolerable

    Reply this comment

Write a Comment

Leave a Reply


Tags assigned to this article:
Jerry BrownJohn SeilerProp. 32unions

Related Articles

Despite Caltrans boondoggles, acting director to be confirmed

April 11, 2013 By Katy Grimes Today, it appears the California Senate will confirm Malcolm Dougherty as director of Caltrans.

Business Meets The Legislature

JAN. 17, 2011 By KATY GRIMES The era of big-government Republican legislators appears to be changing. In the November election,

KFI’s John & Ken talk about CalWatchDog.com report

Feb. 20, 2013 By Chris Reed John & Ken of KFI 640 AM Los Angeles had me on Tuesday to