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Gary Shapiro

Gary Shapiro

Posted: February 22, 2011 04:19 PM

From watching the news or reading the AFL-CIO blog, it seems the growing government-worker demonstrations in state capitols have all the zeal and righteousness of the recent pro-democracy Egypt protests. Their passion is understandable -- after all, they are seeking to protect hard-fought benefits packages obtained in earlier negotiations. Moreover, government workers justifiably feel like scapegoats for politicians eager to balance budgets.

But these are hardly pro-democracy protests. In fact, they are anti-democracy protests. Protest leaders are seeking to thwart the will of voters and a public increasingly upset that government workers are taking advantage of their already generous entitlement packages to the disadvantage of taxpayers.

Americans are fed up that teachers unions protect bad teachers and block reform. We're frustrated that government workers spike their final-year salary and over-time pay to obtain a high life-time payout, effectively gaming the system. We wonder why large pockets of government workers retire early with a "disability." We chafe at government health-care policies and pensions in which state and local employees contribute little, if anything, while benefiting from generous payouts that squeeze government budgets.

Meanwhile, the union leadership approaches every cut as an attack that must be defended as a last stand. Last week, several Wisconsin districts closed schools as teachers went to protest a proposal seeking to eliminate collective bargaining rights for public employees. Wisconsin Gov. Scott Walker, a Republican, introduced the proposal as a way to deal with the state's $3.6 billion budget shortfall without laying off government workers.

It's not only Republican leaders making these decisions to balance state budgets. Democratic governors including New York's Andrew Cuomo and California's Jerry Brown are making tough decisions to deal with the reality that revenue is no longer there to pay the salary, benefits and post-retirement pay and healthcare of government workers.

But like petulant children, union leaders are urging their members to demand the status quo rather than deal with the new reality of state and local governments teetering on bankruptcy. Rather than advocating governments ignore the deficit problem, union leaders could do some good by being part of the solution.

Union leaders could propose ways to consolidate and cut government spending to save money. No one has better knowledge than the government workers themselves what is excessive spending. Politicians are eager to hear how to cut waste, and the unionized government leadership can present itself as part of the solution rather than simply adding to the problem.

It's time we all make difficult choices and cut back on entitlement spending and government programs -- we can no longer afford the status quo, and staying wedded to our old ways disadvantages future generations. It's no longer feasible to just suggest all of our budget problems can be fixed by raising taxes on Americans making more than $250,000 a year. Instead, unions should be creative and think about how else to ease financial problems. Adding jobs is one way -- employed people pay income tax. Unions can help by encouraging a state to be business friendly. Virginia is a great example of this: it has a low unemployment rate because the state has found a way to be bipartisan in its approach to business without kowtowing to unions.

Unions should use their political power to be creative. States are hurting due to declining tax revenue. Some of this revenue is sales tax revenue being lost as consumers buy from Internet retailers. Meanwhile, local retailers such as Borders, Tweeter and Ultimate are closing stores and further eroding not only sales tax revenue but also jobs and thus state income tax revenue. Rather than focus on just union jobs, savvy union leaders should focus on the health of the overall state economy and tax revenue.

Unions can no longer supersede the popular will of state and local voters to get their way. Yet, in the case of the Wisconsin protests, the unions reached out to a higher power for help trumping local concerns. The Daily Caller reports that the organizing arm of the Democratic National Convention, "Organizing for America," which helped elect President Obama, is behind much of the energy of the Wisconsin protests. Reportedly the campaign is filling buses and running phone banks, and even President Obama accused Gov. Walker of running "an assault on unions."

Now is the time for unions to elevate the discourse and show the leadership our nation needs. Rather than organizing massive protests at state capitals, they should join the rest of us in grappling with our nation's budget problems. There has never been a better time for unions to be part of the solution.

Gary Shapiro is the president and CEO of the Consumer Electronics Association, which represents more than 2,000 technology companies and owns and produces the International CES. Shapiro is the author of The Comeback: How Innovation Will Restore the American Dream.

 
 
 

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02:50 PM on 03/12/2011
"It's time we all make difficult choices and cut back on entitlement spending and government programs -- we can no longer afford the status quo, and staying wedded to our old ways disadvantages future generations. It's no longer feasible to just suggest all of our budget problems can be fixed by raising taxes on Americans making more than $250,000 a year." SO TRUE. Let's stop the real entitlement programs...not the ones supporting grannies using walkers but the ones that say we should "socialize" the recklessly incurred losses of the corporate "financial services industry" with their blatant scams. Let's stop the entitlements that say multinational corporations shouldn't pay ANY taxes but also get refunds and rewards for building companies in China. Let's stop the entitlements that have somehow crafted laws and tax regulations so unique that they practically have monograms on them...you know the ones...the ones that allowed 400 individual human beings to wind up with 50% of this country's assets...and just think, they did it the old fashioned way, not by collective bargaining but by buying off a few complicit and compliant politicians and facilitating the appointment of "regulators" who don't regulate and bureaucrats who help legalize theft. That's the entitlement reform we need and deserve. Oh and while we're at it let's stop declaring wars that only benefit war profiteers and the "oil bidness", end the energy subsidies that artifically keep the carbon based monopolies in place. That what you really meant to say, buddy?
01:33 AM on 03/10/2011
Your argument is hallow Sir. I am not concerned about teachers gaming the system, I am concerned about millionaires gaming the system with impunity, I am worried about Wall Street 's reckless, greed based behavior that threw the world into a tail spin, I am worried that the system of one person one vote has been effectively crushed by a politicized Supreme Court. I could go on. And I thank the great dedicated teachers that I gave me the necessary tools to cut through your hallow argument (like trying to convince me that collective bargaining has anything to do with the budget, ask Texas) and understand what you are really saying. My great teachers gave me those tools. And education is one of the things certain republicans want to destroy; can't have an intelligent citizenry can we. Education is indeed dangerous.
04:55 AM on 02/27/2011
The collapse of the financial markets and slide of the entire economy got us into this fix, not the bloated compensation of public workers. Plunging revenues not soaring salaries were the problem. (Harley Shaiken SFGate)
The billionaire Koch Brothers are under the illusion that America is their 'promised land.' They fund 'Americans for Prosperity' and the 'Tea Party' which are synonymous with ignorance, racism and a lack of patriotism and are the architects of the elimination of collective bargaining rights (as in Wisconsin). It is time for real Americans to stand up to these thugs and defend the Democracy for which we sacrificed so much.
02:56 PM on 03/12/2011
Unfortunately, our complacency and apathy and ignorance of what was happening did make this great country one grand "promised land" for folks like the Kochs. And they saw their opportunities and took them. Funny thing is as long as there was even a semblance of a middle class....even one that saw its wages stagnate for 30 years...as long as there was a middle class we paid for everyone, rich and poor alike. Here's hoping that finally their greed has taken them "a bridge too far" and that they've finally exposed themselves for a much needed and overdue comeuppance. Seems to me we should all remember and remind these folks about the nursery school parable about the goose that laid the golden egg. Once we have no middle class, no one will prosper...even those who'll take their show on the road (along with their ill gotten wealth) and move on to the "emerging markets" of the world. A pox on all their houses. Now let's get busy and fix this thing.
11:00 AM on 02/26/2011
So your expertise on unions is from reading a few blogs? Weak.
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Gary Shapiro
10:46 PM on 02/24/2011
Thanks again to all commenters - but I am disappointed. I have not seen the attackers respond to any points in the article - but rather have been slimed simply as a "greedy CEO".

First, my organization is principled and does not seek government funding for ourselves. We are focused on the long term health of the US economy and have embraced the bipartisan Deficit Commission's findings. I have worked scores of factory, restaurant and other jobs and still work 70 hour weeks and have delayed gratification my entire working life - so I did not grow up rich and certainly do not feel greedy.

But it is not about me. it is about the simple fact that our nation is heading towards a fiscal cliff and we need to focus on that. And I did call for shared sacrifice. And if anyone cares I advocated against the Obama tax cut deal with the Republicans. We are in serious trouble and that means taxes must be raised, government spending must be cut and we need a growth, innovation-oriented economy. Again - the numbers do not lie! If American soldiers are risking life and limb - why is it so difficult to have other Americans agree on shared sacrifice? Have we no shared national purpose any more? Are HP commenters unable to understand the concept of unsustainable deficits?
01:51 AM on 03/10/2011
There's absolutely no problem with sharing sacrifice in a time of fiscal crisis. But the unions in WI agreed to make the concessions the Governor wanted on their benefits. Meanwhile the corporate tax rate was already cut in the state, thus exacerbating any fiscal problems in the state. That's excellent if you oppose Obama's deal on tax cuts nationally, but this is an issue in Wisconsin as well. The bill that was passed late Wednesday stripped all the fiscal elements of the originally proposed bill, thus this was only about doing away with workers' rights to organize.

Of course unions are largely behind organizing most of the protests in Wisconsin, Ohio, Michigan & Indiana. That's actually what this issue is really about, Unions organize middle class workers and are main contributers to the Democratic Party. Getting rid of them significantly weakens the base of the Democrats for future elections. With all due respect, there are countless groups, such as Americans for Prosperity and Crossroads GPS organizing and running ads in support of Governor Walker and the Republicans the same way unions are, only the funding comes from far fewer, mostly out-of-state people with economic & political interests in doing away with unions.

Lastly collective barganing has been law in WI for 50 years, it's not undemocratic and if you look at any poll, even Rasmussen, people overwhelmingly support those rights.
02:21 AM on 03/10/2011
Also one other issue related to your comments that we need a growth, innovation-oriented economy. I could not agree more and maybe there is some common ground to be had there. Our country has lost most of our manufacturing base due largely to our trade policies. If we are going to have an economy based on having a highly skilled, educated workforce, the business community needs a workforce that meets those needs to drive technology and innovation. By drastically cutting the education budget (in addition to the unions) and doing away with salary and benefits for teachers in states like Wisconsin, Ohio, Michigan, etc., the teaching profession becomes less attractive to those who would be the best candidates and students are provided with less resources to help reach their full potential. Thus states may gain tax advantages to attract businesses in comparison to other states, but their citizens become less skilled and able to help drive innovation. Furthermore consumers drive economic growth and by weakening the middle class, companies have fewer buyers for their products & services. Building a strong economy is not a zero sum game where the less employees get paid and the fewer services government provides, the better the private sector does.
03:17 PM on 03/12/2011
"You speak truth, young one...the force is strong within you." You're so right. It isn't just workers who are robbed by the unbalance in our current economy. We've destroyed our capacity (because we've left individuals without assets and bankrupted our country) to undertake really monumental things like updating the electricity grids, investing in sustainable/alternative energy and creating medical breakthroughs that focus on cures instead of ever more complex and expensive "cures" that keep the pharmacecutical execs so proud and happy and rich. We've given over the care of our environment who don't regulate toxic processes like deep shore drilling and hydrofracking and we've seemingly given up on the idea that an economy should reflect a balance in the exchanges between labor and commerce. And now we've even got some union reps chastizing us for not being more "business friendly"....which all too often translates into wanting more of the same. Small businesses and those that treat employees well should be the ones receiving our support, not every business. Let McDonald's and Walmart hire people for less than full time jobs and no benefits. Let food processing plants literally import illegal immigrants. And everyone turns a blind eye to the "costs" to the rest of us. An orgnization here used to call itself "Citizens for Business and Industry". They cut out the subtrefuge/re-christened themselves Chamber of Commerce. We're overdue for a new group..."Business and Industry for Citizens" I won't hold my breath waiting for it.
05:09 PM on 02/24/2011
Again yet another attack on the little people by someone of power and privilege. He spins is out as really an attack on irresponsible union leaders but make no mistake, it's an attack on members. Funny how guys like Shapiro never seem to get around to attacking the banksters, greedy hedge fund managers, a lapdog press and bought-and-paid-for politicians for burning our country's economy to the waterline. Oh and btw, the pubic service unions of WI were willing to make concessions before the protests even started. Walker's moves were all about power not a small deficit that he himself helped manufacture.
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zuzuzpetals
08:22 PM on 02/23/2011
The budget crisis is Wisconsin was falsely created by Walker giving tax breaks to the people who funded his campaign so please stop the false narrative of blaming teachers.

Tell you what--let's trade 1000 mediocre teachers for every corrupt banker/financier we taxpayers bailed out, or for every bought off congressman, or for every Supreme Court Judge who gives closed door speeches at political fundraisers for folks who have cases in front of them, or for every corporate head Walker gave a tax break to. A thousand to one in terms of harmfulness--is it a deal?

Our dire, national financial straits were created by one thing: corruption in the financial industry. Quit trying to strip working people of their constitutional rights to meet and or in any way blame them for trying to earn a decent wage with security in old age.

Without unions, there are no livable wages for the rest of the middle class, even if they aren't in a union. The unions are the ground under the feet of working people.
02:50 PM on 02/23/2011
I'm assuming you're referring to Social Security and Medicare when you talk about "entitlement" spending. First of all, benefits we contribute to over a working lifetime are EARNED not gifted to us. Secondly, I have to pay social security taxes on every nickel I make but you don't. The cap should be raised so that self-proclaimed "reformers" like yourself contribute your FAIR share. Medicare could be reformed in 15 minutes if the corrupt insurance monopoly were cast aside. We have the most expensive, yet among the most ineffective health care systems in the world (check infant mortality, life expectancy, etc. against the rest of the world). As far as union membership goes, there IS none. Outside the public sector, unions have been effectively busted by stateless CEO's like yourself, who'd have us compete with 3rd world coolies for subsistence wages while you get ever fatter on an ever larger share of the pie. Once again, your self-serving arguments are given a podium although they've been discredited by decades of actual history. We've tried it your way, it's failed miserably and you should consider yourself lucky you're not hiding out like Kaddafi in some rubble-strewn board room plotting your escape from the subordinates you've screwed over. There’s always hope …
01:06 PM on 02/23/2011
"We're frustrated that government workers spike their final-year salary and over-time pay to obtain a high life-time payout, effectively gaming the system. We wonder why large pockets of government workers retire early with a "disability."
Wow, what a statement, considering a large number of Gov. Employees are retired military, and a very large number of those have one or more "disabilities" that come from protecting and serving this country. Anyway, I thought this article was supposed to be about teachers and their enomous salaries and the golden parachutes they receive upon retirement. LOL!!!!!!!!!!!!!!! When you talk about government service, it was designed for those that served, and I've yet to see any retiree abuse that by serving their tour of duty and then claiming to be hurt, just to claim a disability check. And you'll have to explain that " high life-time payout" that you claim they recieve, because I've yet to see a government worker that drives a Bentley.
03:24 PM on 03/12/2011
The abuses he mentions are not the norm in most public pension programs and where there are abuses they should be addressed. But before we heed the call for more 'shared sacrifice' there's got to be a leveling of the playing field with a little more 'shared accountability'. Most workers in this country have already sacrificed their futures and their jobs and their wages to the onslaught from corporate malfeasance and corruption (aided and abetted by complicit politicians). IT may have started with President Reagan but let's call what we've just gone through what it really was-The Bush Depression, triggered by the greed of a few at the expense of the entire country and it's time for a little economic justice and corporate responsibility.
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01:03 PM on 02/23/2011
Excellent article. I am surprised it actually made it into the Huff Post.
12:17 PM on 02/23/2011
trickle down economics in action folks! Manuafcturing investment goes to the cheapest and most subsidized markets whcih drives down domestic labor costs. we cant get out of the 2001 recession so we blow another bubble which for a moment hides the fact that we've lost the ability to create any exportable value. when the bubble pops and revenues dry up for the local economies we blame......................wait for it..............wait for it...........unions!

so the answer to all our problems is make less money, have less collective labor rights (the counter balance to capital formation) and pay more for our benefits and those end up in the wall street casino.

Great! Lets make a bumpersticker. Im on foodstamps and i make 10x more than Ming
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Gary Shapiro
11:26 AM on 02/23/2011
Thanks for all the comments: pro and con. I am still puzzled why union leaders are not constructive in their approach and unwilling to take on issues like sales tax revenue and cuts in government and efficiencies. Our nation is heading towards Greek like trouble, we are all in this together and we are all going to have to sacrifice. The math does not lie.
01:53 PM on 02/23/2011
the governor isnt interested in constructive solutions. we're not all in this together. 75% are in or live in towns that are in deep kimchi. if you have one of those jobs where you make nothing of value yet take home a billion dollars a year taxed at 15% you're probably pretty happy. the lobbyist you paid is doing his job and any constructive changes that might cut into the lifestyle of the gated community you live in arent going to happen. meanwhile my police force and fire department are getting pink slips because the cut taxes regime of the last 30 years forgot to put the pension liability on the books and told everyone there was a surplus. whoooops! but as the saying goes it rolls downhill. my home is worth half what it was. I went from a 75K to a 60K job but so thats less going to the local govt. Junior is doing his tour in Iraq and afghanistan paid for by a loan from the chinese which is where my 75k job went. so you're right. we havent sacrificed enough
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BeckyJustice
Stop the frickin Fracking. NOW!
03:03 PM on 02/23/2011
What are YOU willing to sacrifice? Why not one word on the fact that Walker himself created this mess by giving all those tax cuts to Corporations?

Oh sorry, my bad. You run one of those Corporations.
President & CEO of the Consumer Electronics Association
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Gary Shapiro
06:56 PM on 03/06/2011
The Consumer Elecronics Association has little if any business in Wisconsin and certainly has no tax benefits from Wisconsin of which I am aware,
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bd7769
I am so often right, that I am a progressive
11:04 AM on 02/23/2011
I think you raise some valid points
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Robert SF
10:36 AM on 02/23/2011
"Protest leaders are seeking to thwart the will of voters and a public increasingly upset that government workers are taking advantage of their already generous entitlement packages to the disadvantage of taxpayers."
===

You are perpetuating old lies and hiding behind half truths. Indeed there are excesses in public worker unions, but the excesses are concentrated in certain areas. Meanwhile, the right wing is trying to make it sound as if ALL public workers are excessively compensated. The irony is that the public workers who really are compensated excessively have been promised by the right wing that they won't have to give anything up.

I'm talking about law enforcement, of course. In every town, city, and state, when you look at who has the truly golden pensions and benefits, it's always law enforcement. It's not the gardeners that keep the City Hall landscaping neat. It's not the people stuck behind counters and long lines of people at government offices. No, the cream always goes to law enforcement, and politicians always assure law enforcement that they have nothing to worry about.

In SF, the last Chief of Police retired with a cash-out payment of almost $500,000 PLUS a yearly pension worth more than $250,000. That goes for the Fire Chief and just about every single city department head. Meanwhile, teachers make $50k and gardeners make $24k.

Yes, unions could stand some reform. Our democracy could too, but there's no reason to perpetuate lies.
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BeckyJustice
Stop the frickin Fracking. NOW!
03:08 PM on 02/23/2011
Yes but certain groups were eliminated for the time being in an attempt to fool them into thinking they won't be next. Their mind set is, squash he first groups and it's easier to squash the next, and the next, and the next. trouble is, they couldn't even get the first group to play their game, so now they have to employ Robo Posters to make it look like they are winning. Trouble with that is, Americans aren't buying.
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Sean Laney
04:46 AM on 03/13/2011
Don't forget prison guards (oh, are we supposed to call them correctional officers now?). Look at the abuses the CCPOA has perpetrated.
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06:07 AM on 02/23/2011
What are insightful analysis! This blogger hit all right points concerning the publics view of how unions have rob the taxpayers.
10:47 AM on 02/23/2011
He happens to be wrong on each and every point.
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BeckyJustice
Stop the frickin Fracking. NOW!
03:26 PM on 02/23/2011
Gallup has a poll out that completely refutes Rasmussens' bogus poll. Since Google has been overrun by multiple hits on "Polls on Wisconsin disputes" with page after page of Rasmussen's Poll. Everyone needs to Google "Gallup poll on Wisconsin disputes".

The first Google has a bit of a problem though. Almost every one of the links on those pages also contains the following, Rasmussen Poll on Wisconsin Dispute May Be Biased. You can see why they want to get rid of education in America. Can't have the general public be more educated than they are. They just don't understand why we aren't swayed in the least by a poll that we have already been told is biased. Especially after we read the idiotic questions Rasmussen asked and see just how biased the questions were.
03:25 PM on 03/12/2011
Oh but that's such a minor thing!