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Richard (RJ) Eskow

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If These Politicians Think Teachers Have It So Easy, Why Did They Become Bankers?

Posted: 09/13/2012 2:40 am

This week a lot of Democrats and "liberals" are attacking Chicago teachers for what they tell us are their extravagant and "unreasonable" demands. It's funny: If they think teaching's such a gravy train, why have they all become bankers instead?

These banker/politicians are usually spotted in the plush and well-appointed board rooms of America's richest corporations, not the overheated, overcrowded and poorly maintained class rooms of its public schools. But that doesn't stop them from passing judgment on those who labor there. In fact, to hear these politicians talk, you'd think that public school teachers -- not their fellow bankers -- are the pampered and privileged parasitical class that's ruining our economy.

It must be satisfying for these politico-financiers to finally have this opportunity to condemn the teaching profession. From the stockyards of Chicago to the storied streets of Philadelphia, it's given them a chance to wash down the fruits of non-productive wealth with the fine wine of moral certitude.

As another ambitious ex-progressive liked to say, "How good it is to be us!"

Bankers' Ed

Consider former Pennsylvania Governor Ed Rendell, who said today that the Chicago strike is "an important issue, because Rahm Emanuel is showing again that Democrats can stand up to unions when their demands are unreasonable."

Banker/Democrats always need to show they're tough, since they're not willing to be do it where it's really needed -- by prosecuting their colleagues. Who makes a better scapegoat than the teachers who educate our kids? And if teachers don't like the public bashing, hey -- it serves 'em right for causing the financial crisis with all those toxic derivatives.

Banker/Democrats are always practicing their "tough" lines in the mirror. I can see them now asking their advisors, How's this for tough? "Hey, kids! Ask your homeroom teacher if she's better off now than she was four years ago!"

Rendell's a folksy sounding guy with a flair for feisty, if nonspecific, leftish rhetoric. He came to the Governor's office by way of a Philadelphia law firm called Ballard Spahr. The firm was first established in 1885, right around the time that the phrase "Philadelphia lawyer" became a synonym for "moneyed elite" -- and for good reason. It continues to specialize in real estate, mergers and acquisitions, municipal bonds, and other forms of high-finance law.

Ballard Spahr received $22 million in legal fees from the state of Pennsylvania while Rendell was Governor. And when he left office, our "Man of the People" went right back to Ballard Spahr. It's nice when things work out, isn't it?

There's no indication that Rendell ever applied for a job with the Philadelphia School District upon leaving the Governor's office. In addition to his post-gubernatorial Ballard Spahr partnership, however, Rendell is now a "Senior Advisor" with the investment banking firm of Greenhill & Co.

He is also a regular commentator for MSNBC -- the "liberal" alternative to Fox News.

Qualified

Teachers in the Chicago School District need a four-year degree in their discipline. They also need a postgraduate teaching certificate, and in some cases are expected to be bilingual or have additional graduate training.

This was Rahm Emanuel's preparation for the mayoralty: He was a fundraiser and then an advisor to Bill Clinton. Then he got hired as a partner in an investment banking firm, where he made $16 million in two and half years despite having no background in banking or finance. Clinton then named him to the Board of Directors of Freddie Mac, where the Chicago Tribune reports he "made at least $320,000 for a 14-month stint ... that required little effort." During his tenure Freddie Mac's management practices became so abusive and corrupt that a government agency concluded that the Board which included Emanuel "failed in its duty" because it didn't "follow up on matters brought to its attention."

In Rahm's world teachers are graded for performance -- but overpaid board members aren't.

Emanuel was elected to Congress on a strongly pro-Iraq War platform, calling for - we kid you not - a "muscular projection of force" into the region. (Paging Spinal Tap!) Later he culled many progressives from the House as the head of Democratic Congressional Campaign Committee, fighting Howard Dean's fifty-state strategy and then taking credit for it when it succeeded. He was also the House's top recipient of hedge fund contributions in 2008 -- after the financial crisis was well underway. Emanuel became Chief of Staff in the Obama White House and was then granted the Democratic mayoral nomination in baronial, machine-politics fashion.

At no point during the accumulation of his millions did Emanuel apply for a job teaching packed classrooms of lower-income kids in the now-demolished Cabrini-Green projects -- or in any other struggling Chicago neighborhood, for that matter.

Friends With Benefits

From the Chicago Sun-Times: "A clout-heavy contractor who made millions from former Mayor Richard M. Daley's affinity for wrought-iron fences has been awarded a $2.7 million airport contract by Mayor Rahm Emanuel for which the company was the lone bidder."

From local news station WGN: "Emanuel ally's client to get speed camera contract."

As the Wall Street Journal reports, Emanuel is privatizing the city's finances by turning to banking firms:

To pay for (new) projects, Mr. Emanuel is turning in part to private firms including Citibank and Citi Infrastructure Investors, Macquarie Infrastructure and Real Assets Inc., J.P. Morgan Asset Management Infrastructure Investment Group, and union-held Ullico. These firms say they are ready to provide at least $1.7 billion to help build the "new Chicago." (Though the details are not yet set, the likely arrangement would have the private firms putting up capital and then recouping their investments through user fees over a set period of years or decades.)
Yes, crime-ridden JPMorgan Chase is doing well under Mayor Emanuel. But why not? Bill Daley, son of one Mayor Daley and brother of another, was a JPMorgan Chase executive. That was before he went to the White House -- to take Rahm's old job.

Emanuel's been giving waste disposal contracts to private firms like Waste Management Inc. instead of using city employees. And if Waste Management Inc. has been accused of antitrust violations and accounting improprieties, that just makes them appropriate bedfellows for fellow city contractors like JPMorgan Chase. (And like Chase and many other banks, the decidedly non-financial Waste Management Inc. was also allowed to settle that suit without criminal indictments.)

Breaking the Contract

What does all of this have to do with the teacher's strike? This:

Mayor Emanuel unilaterally voided a contract agreement between the teachers' union and the city which would have given teachers a pay increase of 4 percent. How would the politicos and their allies feel if he retroactively broke corporate contracts instead?

The Mayor expresses grave concerns for the fiscal health of the Chicago School District when the teachers' concerns are raised. But when the Mayor's often-abused "TIF" funds are mentioned, that concern seems to disappear. And when it comes to corporations ... well, imagine if the situation was reversed:

Think how much money could be saved if Mayor Emanuel told that "clout-heavy" airport contractor, "Thanks for the fence. Now we're cutting your payment by 4 percent." Or if he said, "Thanks for the stoplight cameras, client of my ally, but you're not getting what we promised you." Or "Here's your money, Waste Management -- 96 percent of it. Now go trash yourself."

The entire city of Chicago would leap for joy if Emanuel told that parking meter company that there were now new rules in effect, and lower fees too - contract or no contract. And imagine how good it wold be for the city's economy if he wrote a letter like this: "Dear Citibank and Citi Infrastructure Investors, Macquarie Infrastructure and Real Assets Inc., and JP Morgan Chase: Shove your contract. The people of Chicago are not paying you nearly as much in user fees as we originally agreed to pay. We don't think it's in the best interests of our kids."

Wouldn't Ed Rendell be thrilled? "It's an important issue," he could say, "because Rahm Emanuel is showing again that Democrats can stand up to bankers when their demands are unreasonable."

Oh, wait ...

Reuters reported this week that as a result of the strike, "Emanuel canceled a trip to New York on Friday to speak to a group of bankers."

We're pretty sure it'll be rescheduled.

The Agenda

Emanuel wants to give standardized testing the lion's share of weighting in evaluating teachers. But teachers don't control most of the factors influencing test results. This change would let the city fire teachers at will, whenever they began to gain seniority and earn pay raises, and the union could do nothing to stop it.

That's the point.

Besides, why is $71,000 - an average which apparently also includes administrators - considered extravagant pay for a teaching job? It requires four years of college and calls for additional training too. It includes long hours of grading papers and other non-classroom work. The work is sometimes dangerous, often highly stressful, and always demanding.

Some observers have used local-area wage data to suggest that Chicago's teachers are overpaid compared to other college-educated workers. That argument ignores teachers' additional training requirements and their challenging working conditions. And the real message behind that logic is that teachers should be satisfied with the wage stagnation, financial insecurity, and dying way of life which has become the norm for the college-educated middle class.

Why won't these teachers accept the fate that's been decreed for them by their betters? Why aren't they willing to wallow in a mire of stagnant income like the rest of the middle class? They're trying to rise above their station. But then, that's why bankers hate unions. They encourage that sort of thing.

Matt Yglesias argues that the anti-teacher fight is not inherently anti-union or anti-middle class, because teachers work for the government. "if Chicago public school teachers get a better deal for themselves," he writes, "that may well mean a worse deal for Chicago taxpayers."

That argument creates a false zero-sum divide between the interests of "taxpayers" and the interests of teachers. It ignores the social benefit of placing well-paid teachers in safe and hospitable classrooms, where they're likely to produce better-educated and more productive graduates. It ignores the effect of added economic incentive for talented people to enter and stay in the teaching profession. It ignores the stimulus effect on the local economy when middle-class people receive decent wages.

And it ignores the fact that salary demands are not at the heart of the Chicago strike, which is centered around benefits and working conditions. Strikers also want to reinstate the terms of that already agreed-upon contract.

Which gets us back to the question: Why is a union contract considered any less binding in a banker/politician's eyes than a corporate one? That's a rhetorical question, of course: It's because their agenda is union-busting, not corporation-busting.

Both Sides Now

And all of this seems just fine with Rahm Emanuel, Ed Rendell, and all of the other Democratic banker/politicians who learned at the feet of the master -- by which we mean President-turned-hedge-fund-millionaire Bill Clinton. When it comes to banking interests, nobody fetches like the Big Dog.

It's certainly fine with Mitt Romney, who was in full Eddie Haskell mode as he slammed the teachers in a bipartisan show of solidarity with his fellow bankers. Romney, who spoke of "the hundreds of thousands of children relying on the city's public schools to provide them a safe place to receive a strong education," is running on a platform which includes drastic cuts to education, child safety, and children's health programs.

"You look lovely today, Mrs. Cleaver," added the Republican Presidential hopeful.

That's how it's done, peons! Drinks in hand, the banker/politicians rise up to attack the strikers and defend their own way of life. On golf courses and in country clubs, their tans glistening in the early autumn sun, they sing out as if with one voice: How good it is to be us!

And if it sucks to be you -- to spend your lives on the firing line, to go home each night with hours of homework to grade, to spend overheated fall days or freezing winter days in grim classrooms with a parsimonious nation's struggling schoolchildren, to try to do your job without supplies, support, safety, or respect -- well, say the banker/politicians, that's not our problem.

Sure, it's a drag, say the hedge-fund politicos, but c'mon, teachers: it's no reason to be unreasonable. Besides, you're not our end game. You're just the first step in our long-term plan to rescue the nation from a much more dangerous predator class:

Bus drivers.

(There's been some great commentary on the strike from Digby, Doug Henwood, Corey Robin, Mike Elk, and many others.)

 

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02:29 AM on 10/24/2012
Teacher unions MUST and WILL end. Taxpayers only have so much money. You get raises, we get nothing because of the economy. If we do get a tiny raise, it's immediately taken up in a raise in property taxes to cover YOUR raise. You think that is fair? I work hard all day too, I am a parent, a taxpayer. I would also like to have all of the benefits you have. I don't get to spend all summer with my kids. Or 2 weeks at Christmas. Or spring break, every holiday, etc. They have to stay with a sitter while I go into work for 40 hours, often having to bring work home with me. I have to pay $800 a month towards my health insurance, plus the co-pays and deductibles - which I don't mind because the thought of going back to government healthcare gives me nightmares. We ALL need to work together to heal this economy. Can't you step away from your greed and forgo your bonuses and raises like the rest of us? We're not all "banksters", some of us are hard working people like you. We're your neighbors. We also went to college and are just trying to get by.
02:10 AM on 10/24/2012
$75,000 a year plus platinum benefits package (fully funded health insurance, dental, vision, prescription, retirement) which equal closer to $100,000+ for 4 years of schooling and a work day of 8-3 is a very good salary in many parts of the country. Teachers in our district make closer to $116,000 a year for 9 months of work.

I don't think people realize that EVERYONE works outside of office hours. Teachers might be grading papers on the weekend, but there are workers all over the country who are taking conference calls, calling in to check on patients or clients, doing meetings in the middle of the night to accomodate a different time zone, etc. etc. etc. And these hard working people don't get summers off. Teachers still get paid in the summer, the $100,000 a year salary they get is divided into 12 months. So while they're lounging by the pool or on the golf course, you are sitting in your artificially lighted cubical.
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worldlyhick
09:07 PM on 09/13/2012
Thank you for the perfect summary of Ed Rendell, Rahm Emanuel and their ilk. Wish they would just go ahead and plague the Republican party for a while by just joining up with them.
06:40 PM on 09/13/2012
This article has a lot to say for teachers. My husband has been a teacher for the past 20 years and is very good at what he does. It can be very hard and stressful at times, actually more times than not. He always tells me that like with most other occupations one usually reports to one supervisor or boss. He has 30+ every year (principal, students and parents). I have volunteered in the classroom many times over the past 15 years for any one of our 5 kids and I can tell you from personal experience kids are not what they used to be. I would be scared to death to know that my raise would be based on the performance of kids who don't give a damn. Not all kids are like that but depending on the school district, it could be a lot of kids. In my husband's district there are no fancy holiday parties put on by their employers, they do potluck. One might argue, but the taxpayer does not want to pay the bill. But don't fool yourself everyone pays for the big corporate bashes in some way. It also makes me wonder what $70,000 represents in pay for a teacher. That for my husband is 20 years of service, not entry level. I would just like to invite every individual who is throwing a stink about teachers having it easy to volunteer for a month in the classroom and see what it is like.
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janmB
loves life
04:03 PM on 09/13/2012
Teachers don't have it easier or any harder than most any other working person. Although they are apt to be able to retire earlier in that vocation.
04:22 PM on 09/13/2012
Thank goodness you pulled that made up set of truthiness out of your ...
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janmB
loves life
11:40 AM on 09/14/2012
Why would I have to gain by lying ? duh... I'm friends with a couple teachers one who retired at 55 and another at around 60. When I travel, there are always teachers in the crowd...who retired young....that's how I know.
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04:50 PM on 09/13/2012
... and they have a huge responsibility for the future.
02:21 AM on 10/24/2012
A future of what? Children who can't read, spell, write or do basic math even after being schooled from K-6 in a wealthy, suburban "blue ribbon" district ? Because of some great invention called "social promotion" where they promote the kid on to the next grade even if they fail EVERY test, EVER standardized test and score "below proficient" on every required test. And why? Because the teachers don't want to have this failing child on their record. So they push them through. And this isn't just happening here, it's happening everywhere. Kids going through public schools today are not taught to think, to reason, to question, to discover or even to read, write & do math. They're taught to comply, obey, sit down, shut up, watch movies, have day after day of "pajama party" and "movie day" and all sorts of silly things while the teachers surf facebook and text. America is falling further and further behind because no-one is willing to question the "sacred cows" of teaching. THAT is why kids are unruly - they're bored and they know the teachers don't care. Teachers know they can't be fired, so they do pretty much whatever they want. Don't let them fool you, we parents (and former teachers) know the score - your gravy train is about to run off the tracks.
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Anon Ymouse
03:05 PM on 09/13/2012
Your story is very good, but it does not address one of the key points in the teachers strike - an objective evaluation process. I would like to compare the evaluation process for both the banker and the teacher.
The banker:
The bankers' bonuses (prior to the bailout) are based on the bank's performance of investments.
If the bank's investment vehicles perform well so does the banker performance evaluation. The bank does not control market performance, so this is an objective evaluation process.
The teacher:
The teachers' bonuses are based on student performance. The proposed student's performance will be scored on nationally sanctioned tests - an objective evaluation process.
The current evaluation is based on whether the students are promoted to the next grade level at the end of the year - a subjective process. To insure the student is promoted to the next grade the pass/fail grade was lowered from 70% to 60% More students would pass to the next grade and more teachers would recieve bonuses. The teachers control the evaluation process - a subjective process.
Bankers performance is based on market fluctuations, something they do not control. Teachers evaluations should also be based on an objective process they do not control.

Your story did mention politicians and the bribing of public officials for financial gain or campaign contributions. I could not introduce the politician into this comparison as the politician has no objectives other than to get elected and the evaluation process is totally biased and subjective.
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jsgaetano
Legum servi sumus ut liberi esse possimus
01:19 PM on 09/13/2012
Working class America stands with the Teachers. It's truly shameful how much conservatives hate working class people.
12:53 PM on 09/13/2012
I agree that we elect people who have spent most of their lives as politicians, many from a very young age, and then expect them to somehow do sensible things when in office. I don’t think having a political class is good for the country. Folks should do a stint and then go back to being a regular citizen. It is also concerning that so many politicians enter office of modest means, but seem to help themselves to giant helpings of public wealth when no one is looking and leave able to set up foundations. That being said, the teacher's union hasn't been at the forefront of improving the education of students for quite a while and folks have begun to notice.
11:33 AM on 09/13/2012
I'm glad I'm not the only one who sees the double dealing the New Democratic Party has begun doing. How can you be so hard lined on freaking teachers, when our government has pretty much dropped (never started) any cases in the crash of 2008?

As I have been saying for years now, these parties are one in the same. Putting on the same circus show fooling half of America.
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SocratesSiddhartha
"Poverty is the worst form of violence." Gandhi
11:11 AM on 09/13/2012
Never liked Rahm,and I always appreciated teachers!
10:33 AM on 09/13/2012
As a retired teacher, never was the truth more told.

In addition, money is not the issue in Chicago. It's issues like providing services for impoverished children and funding music and arts programs. It's about educating children rather than preparing them for some stupid test that most kids don't care about.

Again, I'd invite critics to walk in my shoes. Maybe with luck they'll wind up in my former home away from home, Bungalow 32 - with its leaky roof and dysfunctional heating system
09:01 PM on 09/15/2012
The critics would be whimpering cutled up in the corner of the classroom within a week.
10:26 AM on 09/13/2012
Sure, its not easy being a public school teacher. But you still can't say that the government run schools are working well for local communities. The public schools in cities are run like any large government program. Here in Seattle entire school system is run from one office all the way down in the southern part of the city. If you want to deal with the school everyone has to go there and get in line. Does that make any sense? We run public schools like factories.

The private school we attend is all located in one building. The administrators are right there in the school. Which model would you want for your kids?

The consolidation of the public schools into mega schools has been a disaster. Why aren't you talking about that? Why aren't the big schools being broken apart into smaller accountable districts? What is wrong with community control of schools?
10:12 AM on 09/13/2012
Thanks for SUPER analysis! I keep hearing the corporate supporters advising teachers & unions to come into the "real world," where they can expect accountability, as it operates in "reality." I hope that teachers have the sense to get the same test-writers as the bankers. These are the tests which reward corporate board members lots of money for having the acumen to hire employees adept at ignoring numbers while talking profit. The best evaluations for teachers would be the ones like those used to score Biggie Bankers who lose $Billions or $Trillions as achievers who EARN their $100+Million annual salaries/options/benefits.

Now, THAT'S reality!
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09:17 AM on 09/13/2012
It's ironic that the union-hating elites are trying to set this up as a struggle between teachers and "taxpayers." Unlike the banksters, teachers ARE taxpayers.
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Romeover
Civilization is for weaklings.
09:13 AM on 09/13/2012
Thank you, Mr. Eskow, for a fiery defense of the working class (and yes, teachers are working-class).