The Forum Press, 2010)Moreover, Neo‐Liberalism, which was put into place in the 1970’s and the 1980’s, is a return to nineteenth century “Classical Liberalism” —based on

TheAssaultonPublicWorkerUnionPensionsandNeo‐Liberalism:Greenhut’sPlunder!BroadsidesPublicWorkerUnionsfromtheLibertarian‐Right—ReviewEssay:StevenGreenhut,Plunder!:HowPublicEmployeeUnionsareRaidingTreasuriesControllingOurLivesandBankruptingtheNation(SantaAna,California:TheForumPress,2010)GeorgeWrightEditorialBoardUnitedPublicWorkersforAction(www.UPWA.info)

“YetanypersonwouldtradetheirpaltrySocialSecuritypromiseforthegenerouspublicpensionguaranteesenjoyedbygovernmentworkers.”1—StevenGreenhut“Withtheannualgrossfigure…dividedby12months,[the]averageCalPERSschoolsystemretireeat$1,192isnotonlylivingatpovertylevel,theyarenotachievingaCaliforniaornationalminimumwagefigureafteryearsofretirementcontributions,whichwouldreachanannualminimumwagelevelwitha$1,386.67monthlygrossretirementbenefit,beforetaxes.”2—CatherineD.Alexander“YetnoamountofsophistryorbrainwashingcandisguisethefactthatanysuchattempttoundothesocialgainsmadeintheindustrialWestoverthelasthundredyearswouldgocompletelyagainstthegrainofhistory.”3—HarryShutt

IntroductionThisreviewwillexamineStevenGreenhut’sPlunder!:HowPublicEmployeeUnionsareRaidingTreasuriesControllingOurLivesandBankruptingtheNation.4ThebookisaRight‐wing‐Libertarianattackonpublicworkerunions,withparticularemphasisonpublicworkerpensionplans,claimingthat:1)publicworkersarea“governmentelite”becausetheyearnmoreinsalaryandbenefitsthanprivate1StevenGreenhut,Plunder!:HowPublicEmployeeUnionsareRaidingTreasuriesControllingOurLivesandBankruptingtheNation(SantaAna,California:TheForumPress,2010)p.98.2CatherineD.Alexander,“DefinedBenefitPensions:AModestModelforEconomicGrowthandStability,”(November17,2010).InternetSource.3HarryShutt,TheTroublewithCapitalism:AnInquiryintotheCausesofGlobalEconomicFailure(London:ZedPress,2009)p.230.4Greenhut(2010).

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sectorworkers;2)publicworkerunionscontroltheDemocraticParty,whichinturncarriesoutthepoliticalinterestsofpublicworkerunions;and,3)publicworkersalariesandbenefitpackages,particularlypensions,arethecauseofstateandlocalgovernmentbudgetdeficits.Thepremiseofthebookisthatpublicworkerunionsare“plundering”stateandlocalbudgets,whichwillleadtothosegovernmentsbecomingbankrupt.However,examiningGreenhut’sargumentinrelationtotherealitiesoftheUnitedStates’political‐economy,theconclusionthatshouldbedrawnisthatitiscorporationsandWallStreet,facilitatedbytheUnitedStatesGovernment,thatare“plundering”stateandlocalgovernmentsaswellaspublicandprivatesectorworkers.ThisreviewarguesthatGreenhut’sbookisapropagandatoolinthecurrentcorporate‐WallStreet‐Right‐wing‐Libertarianassaultonpublicworkerunionpensions.Moreover,sincethe2007‐2008financial‐economiccrisispublicworkerpensionshavebeenmadeacentralissueonthenationalpoliticalagenda.Inaddressingthistopicthepaperwill:1)discusstherecenthistorical‐politicalcontextoftheassaultonpublicworkerunionpensions;2)outlinethecentralpointsofGreenhut’sargument;3)assessGreenhut’sassumptions,method‐ology,andconclusions;and,4)discussthecurrentpoliticalassaultonpublicworkerpensionsinCalifornia.I.)Historical­PoliticalContextoftheAssaultonPublicWorkerPensionsThehistorical‐politicalcontextforGreenhut’scallforanassaultonpublicworkerunionpensionsisbasedonNeo‐Liberalpolicies.5Neo‐Liberalismisthecurrent“hegemonicideology”whichdefinespolicyoutcomesandshapestheparametersforpolicyformulation,debates,andimplementation.6ThepolicyoutlineofNeo‐Liberalismincludes:1)cuttingtaxesforthewealthy;2)eliminatingsocialwelfareprograms;3)privatizingthepublicsector;4)deregulatingtheeconomy,and,5)bustingunions.Thesepolicyguidelinesunderscore,andareintegralto,MonetaristandSupply‐sidemacro‐economicpolicytoolsthathavebeenusedbytheFederal

5TheacademicarchitectsofNeo‐Liberalisminclude:MiltonFriedman,CapitalismandFreedom(Chicago:UniversityofChicagoPress,1962);GeorgeGilder,WealthandPoverty(NewYork:BasicBooks,1981);FrederickHayek,TheRoadtoSerfdom(Chicago:TheUniversityofChicagoPress,1944).6Amongmanysee:RichardCrockett,ThinkingtheUnthinkable:Think­tanksandtheEconomicCounter­Revolution(London:Harper‐Collins,1994);GerardDumeilandDominiqueLevy,“TheNatureandContradictionsofNeo‐Liberalism,”LeoPanitchandColinLeys,eds.,SocialistRegister,2002,(London:TheMerlinPress,2001)pp.43‐72;SusanGeorge,“AShortHistoryofNeoliberalism,”PaperpresentedattheConferenceonEconomicSovereigntyinaGlobalisingWorld,Bangkok(March24‐26,1999).InternetSource.;DavidHarvey,Neo­Liberalism:ABriefHistory(Oxford:OxfordUniversityPress,2005);GaryTeeple,GlobalizationandtheDeclineofSocialReform(Toronto:GarmondPress,1995);RachelTurner,Neo­liberalIdeology:History,Concepts,andPolitics(Manchester:UniversityofManchesterPress,2008).

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governmentsincetheCarteradministration.7Accordingtothelate‐ItalianPoliticalTheoristAntonioGramsci,a“hegemonicideology”aimstoformadominant‐classdefined‐“collectivewill”or“consensus”insupportofthatpoliticalagendaamongthecompetingandconflictingsocialclasses.8Moreover,Neo‐Liberalism,whichwasputintoplaceinthe1970’sandthe1980’s,isareturntonineteenthcentury“ClassicalLiberalism”—basedonlimitedgovernment.9TheobjectiveofNeo‐Liberalismistofacilitatetheaccumulationofprofitsforthedomi‐nanteconomicinterestsinresponsetotheinherent,andongoing,contradictionsofcapitalismsincethelate‐1960’s. TheimpetustoconstructtheNeo‐Liberalpoliticalagendaemergedinthemid‐1960’swhenUnitedStatescorporationsbegantoexperiencea“fallingrateofprofit.”Bythemid‐1970’s,theeconomicsituationwasmoreacuteastheUnitedStatesfacedstagnantgrowth,inflation,andhighratesofunemployment—referredtoas“stagflation.”10Simultaneously,WestEuropeanandJapaneseeconomiesrevivedfromthedestructionofWorldWarIItowheretheywerecarvingintotheUnitedStatespost‐warmonopolyoverglobalmarkets,challengingUnitedStatescoreindustries.Thiseconomiccompetitionwaslargelyresponsibleforincreasedbalanceoftradedeficits.TheeconomiccrisisbecameevenmoreurgentfortheUnitedStatesduringthe1973‐1975recession,acrisiswhichalsowitnessedtheOrganizationofPetroleumExportingCountriesquadruplingthepriceofabarrelofoil.Thisactionsignificantlyaddedtoanincreaseincommodityprices.PoliticalScientistsThomasFergusonandJoelRodgers,explain,“Bythemid‐1970’sthecumulativeweight…[of]falteringdomesticperformance,lagginginternational7Amongmanysee:Friedman(1962);MiltonFriedmanandAnnaSchwartz,AMonetaryHistoryoftheUnitedStates,1867­1960(Princeton:PrincetonUniversityPress,1963);Gilder(1981);NaomiKlein,TheShockDoctrine:TheRiseofDisasterCapitalism(NewYork:Picador,2007),KevinPhillips,ThePoliticsofRichandPoor:WealthandtheAmericanElectorateintheReaganAftermath(NewYork:HarperPerennial,1991).8Amongmanysee:MartinCarnoy,TheStateandPoliticalTheory(Princeton:PrincetonUniversityPress,1984)pp.65‐88;ChantalMouffe,ed.,GramsciandMarxistTheory(London:Routledge&KeganPaul,1979).9See:ThomasFergusonandJoelRodgers,inRightTurn:TheDeclineoftheDemocratsandtheFutureofAmericanPolitics(NewYork:HillandWang,1986)p.88.;Harvey(2005)pp.39‐63.Asanexampleofthis“advocacyfinancing”attheearlystagesofthedemandforNeo‐Liberalsolutions,FergusonandRodgersexplain,“Bythemid‐1970’s,[UnitedStates]firmswerespendingmorethan$400millionayearon“advocacyadverti‐sing,”muchofitdirectedagainstgovernmentconstraintsonbusiness.10Amongmanysee:ManuelCastells,TheEconomicCrisisandAmericanSociety(Oxford:BasilBlackwell,1980);DouglasDowd,CapitalismanditsEconomics:ACriticalHistory(London:PlutoBooks,2004);JoyceKolko,AmericaandtheCrisisofWorldCapitalism(Boston:BeaconPress,1974);JamesO’Connor,TheFiscalCrisisoftheState(NewYork:St.Martin’s,1973);RodgersandFerguson(1986).

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competitiveness,theexplosionofenergyandothercommodityprices,andthepressuresforincreasingmilitaryspending,alongwithacostcuttinginlabor,regulation,socialprograms,andtaxes—wasimmense.”11Therefore,bytheearly‐1970’s,corporate,WallStreet,andSunBelt‐wealthinterestsbegantofinance(andencourage)theRepublicanandDemocraticparties,Right‐wingforces,Libertarians,aswellastheLiberal‐Establishmenttoworkseparately,andoccasionallytogether,tosystematicallysmashNewDeal‐GreatSocietypoliciesandinstitutions,whileimplementingNeo‐Liberalpolicies.BecauseanumberofNewDeal‐GreatSocietypoliciesandinstitutionspersisteffortstorollthembackcontinues.Moreover,withtheadventofthe2007‐2008financial‐economiccrisis,thatpoliticalimperativehasbeenintensified.Therollbackisgenerallycarriedoutthrough“single‐issue“consensusbuilding”campaignsaimedtoerode,andpossiblyeliminate,specificNewDeal‐GreatSocietypolicesand/orinstitutions.Thepoliciesandinstitutionsthathavebeentargetedincludewelfare,unions,taxes,regulation,affirmativeaction,occupationalsafety,SocialSecurity,publicworkerpensions,andpubliceducation.Ineachcase,acoordinatedcorporateand/orfoundation‐financedcampaignwasformedtocreateapoliticalclimatetolegitimizetheattackonthespecificissue.Simultaneously,thespecificissuewasintroducedintothepoliticalprocess,withtheintentofimplementingNeo‐Liberalpolicyoutcomes.Thepolicyoutcomesaregenerallyincremental,therefore,thesingle‐issue“consensusbuilding”campaignisperpetual.Moreover,the“consensusbuilding”campaignsconsistofamyriadofseparate,andinter‐related,mediatedinterventions.Thoseinterventionsincludemediainterviewswithsingle‐issue“consensusbuilding”campaignadvocates;newsreportsprovidingfavorablecoveragetothecampaigns;speakingtoursbyissueadvocatesatCentrist,Center‐Right,Right‐wing,andLibertarianevents;Right‐wingChristianpoliticaladvocacy;“consensusbuilding”atpoliticalandassociationconferences,work‐shops,andseminars;policy‐planningorganizationsformulatingNeo‐Liberal‐orientedpolicyprograms;foundationfundedNeo‐Liberalsingle‐issueresearchprojects;financingandcultivatingpoliticalcandidatesforelectiveoffice;and,campaigncontributionstoelectedofficials.Thesingle‐issue“consensusbuilding”campaignsarealsoreinforcedbythepublic‐cationofone,ormore,“scholarly”booksand/orreportswhichaimtolegitimizetheassault.Theobjectiveofthe“scholarly”workispolitical.Therefore,thoseworksgenerally:1)discussthespecificissuewithouthistoricaland/orintellectualcontext;2)exaggerateanecdotalorisolatedinformationthatback‐uptheargumentpresent‐ed,whileclaimingittobeuniversal;3)makeallegationswithoutsubstantial,oraccurate,factualsupport;4)catertotheracialprejudicesandeconomicfearsofsusceptibleworkingclasswhiteswhoarethetargetedpopulation;and,5)advocateimplementationofNeo‐Liberal‐orientedapproaches.Theseworksgenerally

11FergusonandRodgers(1986)p.103.

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produceasetofrhetoricalcode‐wordsorphrases,thatframetheissuethatisbeingpromoted.12Thecurrentassaultonorganizedlaborcommencedinthemid‐1970’s,initiatinganewstageintheoverone‐hundredyearcapitalist‐offensiveagainstlabor.13Between1870and1932corporationswerehostiletowardsthelabormovement,whilegovernmentcarriedoutlargelyrepressionandoccasionallyco‐optation.14However,inthe1930’sgovernmentswitchedtoapolicyofregulation.Forexample,theRooseveltadministrationpassedtheNationalLaborRelationsAct,whichestablishedguidelinesprovidinglabortherighttoorganizeandbargaincollectively.Thislegislationwaslargelyinresponsetothemilitancyofthelabormovementatthetime.DuringWorldWarIIorganizedlaborwasstaunchlybehindthewareffort.However,immediatelyafterthewararoundoflaborstrikesbegan,demandingbetterwages,benefits,andworkingconditions.Inresponse,businessinterests,Republicans,andSouthernDemocratsmobilizedtobringlaborinline.ThiswasachievedwiththepassageoftheTaft‐HartleyActin1947,whichamendedtheNationalLaborRelationsActbyestablishing“unfairlaborpractices”appliedtolaborunions.TheleadershipoforganizedlaboralsopurgedProgressivesandCommunistsfromitsranksincomplicitywiththeTruman‐McCarthyColdWar‐anti‐communisthysteriaofthelate‐1940’sandearly1950’s.Bythelate‐1940’s,anunwritten“limitedcapital‐labor‐accord”betweencorporationsandorganizedlaborwasformedwhereemployersrecognizedunionsandtheirrighttobargaincollectively,andunionleadershipadheredtomanagerialcontroloftheworkplaceinexchangeforwageincreasesandretirementbenefitsandjob

12See:GeorgeLakoff,ThePoliticalMind:YouCan’tUnderstand21stCenturyPoliticswithan18thCenturyBrain(NewYork:Viking,2008).13Amongmanysee:KateBronfenbrenner,OrganizingtoWin:NewResearchonUnionStrategies(Ithaca:ILRPress,1998);DebjasBanerjeeandMichaelGoldfield,eds.,Labor,GlobalizationandtheState:Workers,womenandmigrantsconfrontneoliberalism(London:Routledge,2007);TaylorDark,TheUnionsandtheDemocrats:AnEnduringAlliance(Ithaca:ILRPress,1999);JeffGoodwinandJamesM.Jasper,eds.TheSocialMovementsReader:CasesandConcepts(Malden,Mass:BlackwellPress,2003);andPatriciaCayoSexton,TheWaronLaborandtheLeft:UnderstandingAmerica’sUniqueConservatism(Boulder:WestviewPress,1991).14Amongmanysee:SteveBabson,TheUnfinishedStruggle:TurningPointsinAmericanLabor,1877­Present(Lanham,Maryland:RowmanLittlefieldPublishers,1999);DavidMontgomery,TheFallofUnionPowerintheProgressiveEra(NewYork:PressSyndicateoftheUniversityofCambridge,1987);MichaelNash,ConflictandAccommodation:CoalMiners,SteelWorkers,andSocialism,1890­1920(West‐port,Connecticut:GreenwoodPress,1982);Sexton,(1991).

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security.15Therefore,aslongastheNationalLaborRelationsAct/Taft‐Hartleyguidelinescontainedorganizedlabor,andunionsdidnotchallengedUnitedStatesColdWar‐militaristpolicies,that“limitedcapital‐laboraccord”held.TheNeo‐Liberal‐orientedanti‐unionoffensivewaspartoftheresponsetothestructuraleconomiccrisisinlate‐1960andearly‐1970’s.16Duringthatperiod,theUnitedStatesbegantoberestructuredfromanindustrial‐basedeconomytoaservice‐basedeconomy.Theresultwastheoutsourcingofindustrialandmanu‐facturingjobs,mainlytotheThirdWorld,whileinstallinglow‐wage‐non‐unionservicesectoremployment.Furthermore,thecomputerizationandautomationofmanufacturingalsocontributedtothelossofunionjobs.FernandoE.GapasinandMichaelD.Yatesexplainthatcorporate‐financialwealthunderstood“thatthebestwaytomaintainandincreaseprofitmarginsinaperiodofslowandsporadiceconomicgrowthwastocutlaborcosts.”17TheCarteradministrationresuscitatedtheattackonorganizedlabor,whiletheReaganadministrationinstitutionalizedthatapproach.18ThelatterdevelopmentcanbeobservedwhenReaganfirednearly12,000membersoftheProfessionalAirTrafficControllersOrganization(PATCO)aircontrollersin1981.Reagan’sactionemboldenedprivatesectoremployersandpublicsectormanagementtonegotiatecontractsfirmly,weakenexistingunions,andrepresstheformationofunions.19Moreover,eachPresidentsinceReaganhascontinuedtheassaultonunions.Thisagendahasmeantthesystematicerosionofthe“limitedlabor‐capitalaccord.”EconomicHistorianMichaelWachterexplainsthe,“Unionmembership,...,hasbeeninunrelentingdeclinefornearlyahalfacen‐tury.Thereisasinglecauseforthisdecline:theUnitedStates’changefromacorporatist‐regulatedeconomytoaneconomybasedonfreecompetition.Unionsarecentraltoacorporatistregimeandareperipheralinaliberalpluralistregime.”20

15AlejandroReussexplainsthatthe“capital‐laboraccord”waslimitedbecausethearrangementdidnotincludethemajorityofUnitedStatesworkersbecausetheywerenotunionized.See:AlejandroReuss,“WhatcanthecrisisofUnitedStatescapitalisminthe1970’steachusaboutthecurrentcrisisanditspossibleoutcomes,”DollarsandSense,(November/December,2009).InternetSource.16See:FergusonandRodgers(1986)pp.130‐137.17See:FernandoE.GapasinandMichaelD.Yates,LaborMovements:IsThereHope?,”MonthlyReview,57(2)2005.InternetSource.18LaborHistorianPatriciaCayoSextonobserved,“bythemid‐1970’s,withunionsunderfirefromemployers,Democraticofficialshadbackedofffromlabor.EvenduringtheCarteradministration,withaDemocratasPresidentandaDemocraticmajorityinbothhouses,labor’sagendawasstilllargelyneglected,orrejected,andCarterprovedtobe,atbest,analooffriendoflabor.”See:Sexton(1991)p.198.19See:RodgersandFerguson(1986)pp.135‐137.20MichaelWachter,“TheRiseandDeclineofLaborUnions,”TheWashingtonPost,(July18,2007).InternetSource.

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Theresultsoftheanti‐unionoffensivehavebeenveryeffective.Thiscanbeseeninthechangingpercentageofunionworkerssincethe1940’s.21Forexample,in2009,accordingtotheUnitedStatesDepartmentofLabor’sBureauofLaborStatistics,only12.3percentoftheworkforcewasunionized;comparedto35.5percentin1945;31.5percentin1950;33.2percentin1955;31.4percentin1960;28.4percentin1965;27.3in1970.Moreover,thepercentoftheworkforceunionizeddeclineprecipitouswhentherevivedanti‐unionassaultcommenced.Forexample,in1975,25.5percentofworkerswereunionized;in1980,21.9percent;in1985,18percent;in1990,16.1percent;in1995,14.9percent;in2000,13.5percent;andin2005,12.5percent.Furthermore,by2009only7.2percentoftheprivatesectorworkforcewasunionized,comparedto35percentattheendofWorldWarII.TheNewYorkTimes’StevenGreenhousestatesthatthe2009figureisthe“lowestpercentageofprivatesectorworkersinunionssince1900.”22Theeffectivenessoftheassaultonunionscanalsobeseeninthenumberofstrikesandlockoutssincetheearly‐1950’s.In1950,therewere424workstoppages;363in1955;222in1960;268in1965;381in1970;and,235in1970.However,in1980therewere187workstoppages;54in1985;44in1990;31in1995;39in2000;22in2005;and,only15in2008.PhyllisCayoSextonexplains,“uniondeclineinAmericaislargelyexplainedbyaggressiveemployeroppositiontounions,whichisinturnfacilitatedbylawsandpoliciesthatfavoremployersoverworkers.”23Furthermore,RichardFreeman,whoisco‐DirectoroftheLaborandWorklifeProgramatHarvardLawSchool,adds,“theroleofrepressiveemployerstrategiesinreducingunionization,andhighlightsthewayinwhichastateideologyofanti‐unionismtacitlyacceptedthesestrategies.”24Despitethefactthatorganizedlaborhasbeenunderassaultsincethemid‐1970’s,publicsectorunionsstillhaveaprominentplaceinthecountry’spolitical‐economy.Thisrealityisowingtothefactthat,in2009,36.4percentofthepublicsectorworkforcewasunionized.Furthermore,theBureauofLaborStatisticsreportsthat43.3percentoflocalgovernmentworkers(mainlyteachers,police,andfirefighters)areunionized.25Infact,theBureauofLaborStatisticsreportedthatin2009,forthefirsttime,thereweremoreunionizedpublicworkersinthecountry(7.9million),thanprivatesectorworkers(7.4million).HistorianKevinC.Brown,elaborates,“Inhistoricalterms,public‐sectorworkersaremoredenselyunionized

21Thepercentageofunionmembersandthenumberofworkstoppagesweretakenfrom:TheWorldAlmanacandBookofFacts,2010(NewYork:WorldAlmanacBooks,2010)p.115.22StevenGreenhouse,“MostU.S.UnionMembersAreWorkingfortheGovernment,NewDataShows,”TheNewYorkTimes,(January23,2010).InternetSource.23SextoninGoodwinandJasper,eds.(2003)p.374.24See:“LaborUnionsintheUnitedStates,”Wikipedia.InternetSource.25TheWorldAlmanacandBookofFacts(2010)p.115.

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todaythanprivate‐sectorworkerswereattheirpeakin1953.”26Thisrealityisbecausethepublicsector,includingpubliceducation,begantoexpanddramaticallyinthe1950’sand1960’s.Priortothe1950’s,publicworkerscouldnotorganize,bargaincollectively,orstrike.However,inthelate‐1950’sstateandlocalgovern‐mentsbegantoallowpublicworkersthesamerightsthatprivatesectorworkershad.Bytheearly1960’s,13percentofthepublicsectorwasunionized.In1962,PresidentKennedygavefurtherimpetustothepublicworkerunionmovement,whenheissuedanExecutiveOrdergivingFederalemployeestherighttojoinlabororganizationsandbargaincollectively,althoughnottostrike.Bythe1970’s,stateandlocalgovernmentswereputtingintoplacecodifiedlawsprovidingpublicemployeesworkerrights,thusgivingimpetusforpublicworkerstojoinunions.InCalifornia,the1977DillsActgavestatepublicworkerscollectivebargainingrightsandcivilserviceprotections;whilethe1979HigherEducationEmployeeRelationsActgavehighereducationpublicworkersthesamerights.27KevinC.Brownelaborates,“Essentially,governedbyseparatelaws,andsubjectlessimmediatelytothewhimsofthemarket,publicworkershad‘successwhileothersfailed.’Ironically,comingintopowerasNeo‐liberalismgatheredcoherenceideologicallyandforcepolitically.”28Theassaultonunionshasintensifiedsincethebeginningofthefinancial‐economiccrisisin2007‐2008.Theassaultonlaborcanbeseenintheproliferation(andpervasiveness)ofanti‐unionpropaganda.Itisalsoseenintheactiveroleofcorporatemanagersandstateandlocalpoliticians,assistedbytheObamaadmin‐istration,demandingevermoreconcessionsfromlabor.29Thecrisisisrootedinthefactthatthebankingandfinancialsectorhadexploitednearly40yearsofgovernmentderegulationofthatsector.30Themajorreasonfortheintensified26KevinC.Brown,Public‐SectorUnions,”MonthlyReview61(12)2010.InternetSource.27TheDillsActgrant[ed]“stateemployeestherighttobelongtoorganizationsthatserveastheirexclusiverepresentativesincontractualnegotiationsoverwages,hours,andothertermsandconditionsofemployment.Theactrequire[ed]thestateandemployeerepresentativesto‘meetandconferingoodfaith’andendeavortoreachagreementonthesematters.”See:“CollectiveBargaining:TheRalphC.DillsAct,”StateofCaliforniaLegislativeAnalyst’sOffice,Sacramento(January,1995).InternetSource.;Alsosee:“Higher‐EducationEmployer‐EmployeeRelationsAct.”InternetSource.28Brown(2010).29Amongmanysee:JerryWhite,“Obamaadministrationspearheadsattackonautoworkers,”WorldSocialistWebSite(February17,2009).InternetSource.30Amongmanysee:RobinBlackburn,AgeShock:HowFinanceinFailingUs(London:Verso,2006);RobertBrenner,TheEconomicsofGlobalTurbulence(London:Verso,2006);JohnBellamyFoster,“TheFinancializationofCapitalism,”MonthlyReview,58(11)2007,pp.1‐12;AndrewGamble,TheSpectreattheFeast:CapitalistCrisisandthePoliticsofRecession(London:Palgrave,2009);PeterGowan,

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offensiveagainstunionswasthatthecorporate‐interests,ledbytheWallStreetbankingandinvestorsector,havetakenadvantageofahistoric‐political“opening”thatthe2007‐2008financial‐economiccrisisprovided.The“opening”hasallowedthedominanteconomicinterestsandthepoliticalestablishmentthe“politicalspace”toacceleratetheimplementationofNeo‐Liberalpolicies.Thosepoliciesinclude:rollingbacksocialservices;privatizingthepublicsector;and,unionbusting.Theobjectivesare:1)toforceprivateandpublicsectorworkersandtheunemployedtopayforthenational,state,andlocalgovernmentdeficitsanddebtscausedbyWallStreetspeculationbyslashingwagesandrollingbackpublicexpenditures;2)totransferpublicrevenuestothecorporateeliteandinvestorclass;and,3)tobreak,onceandforall,thepoliticalleverageofpublicsectorunions.TheaccelerationofNeo‐Liberalpoliciescanbeenobservedonthenationalandthestateandlocallevels.OnthenationallevelthisintensifiedoffensivehasincludedtrilliondollarbailoutsforWallStreet;increasedmilitaryspending,includingincreasedprivatizationofthemilitary;privatizingpublicservices,suchaseducation;extendingPresidentGeorgeW.Bush’staxcutsforthewealthy;and,raidingpublicworkerunionpensions.Whiletheprospectsformuchdeepercutsinnational,state,andlocalsocialspending,includingcuttingintoentitlementslikeSocialSecurityandMedicare,loomoverthenearfuture.Onstateandlocallevelstherehavebeenmassivelay‐offsofpublicemployees;publicserviceshavebeenseverelyreduced;wagesforpublicworkershavebeenreduced,frozen,orrolled‐back;publicemployeepensionshavebeentargeted;andthecostofpublichighereducationhasbeenincreased.Furthermore,thisacceleratedoffensivehasbeensuccessfulsofarbecause:1)organizedlaborisfragmentedwhereeachunitgenerallybargainsforitself;2)theleadershipofmanylaborunionsarewillingtocomplywiththeconcessionsdemandedbycapital;3)thedisconnectbetweentheinterestsofunionofficialsandtheunionrank‐and‐file;4)thepublicworkerunionleadershiphasasymbioticrelationwiththeDemocraticParty,which,however,iscommittedtodeepeningtheNeo‐Liberaloffensive;and,5)thedisarray,economicimpotency,andgeneraltheoreticaldisorientationoftheLiberal‐left,Progressive,andRadicalactivistsandorganizations.Theassaultonorganizedlaborhasbeencarriedoutbya“consensusbuilding”campaignaimedtodisparagedunions,whileworkingtoimplementanti‐unionpolicies.Theattackshavefocusedonpublicunions,ingeneral,andspecificlaborTheGlobalGamble:Washington’sFaustianBidforWorldDomination(London:Verso,1999);PeterGowan,“CrisisintheHeartland,”NewLeftReview,55(2009)pp.5‐30;GabrielKolko,“WhyaGlobalEconomicDelugeLooms,”Counterpunch.org(June15,2006)InternetSource.;KevinPhillips,BadMoney:RecklessFinance,FailedPolitics,andtheGlobalCrisisofAmericanCapitalism(NewYork:Viking,2008);JackRasmus,EpicRecession:PreludetoGlobalDepression(London:PlutoPress,2010);RobertScheer,TheGreatAmericanStickup:HowReaganRepublicansandClintonDemocratsEnrichedWallStreetwhilemuggingMainStreet(NewYork:NationBooks,2010);RobertWade,“FinancialRegimeChange,”NewLeftReview,53(2008)pp.5‐22.

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relatedissues.Recently,themostprominentissuestargetedhaveincludedpubliceducationundertheguiseofBush’sNoChildLeftBehindandObama’sRacetotheTop.ThatattackonpublicteacherunionsgainedmomentuminFebruary,2010,whenObamaendorsedtheCentralFalls,RhodeIslandschooldistrictfiringof93unionizedteachers,allegingthattheywereresponsiblefor“failing”standardizedtestscores.InwhatmightbeconsideredObama’sPATCOMoment,hestated:“ifaschoolcontinuestofailitsstudentsyearafteryearafteryear,ifitdoesn’tshowsignsofimprovement,thenthere’sgottobeasenseofaccountability.”31JustlikewhenPresidentRonaldReaganopenedthedoorfortheattackonunionswhenhefiredthePATCOaircontrollersin1981,Obama’sstatementwasasignalthatunionizedteachersareincreasinglyvulnerable.Moreover,theassaultonpublicworkerunionpensionshasalsoreachedcenterstageonthenational,state,andlocalpoliticallevels.(Seebelow)Acentralcomponentofthe“consensusbuilding”campaignagainstpublicworkerunionshasbeenmediapropagandablitz.AnexampleofthisapproachwasmadeonAugust19,2009byRight‐wingIndependentWomen’sForumCEO,MichelleBernard,onMSNBC’sMorningMeeting.Shestated,

Thelaborunionsrightnowexistforonereason:Toself‐perpetuate,receivinguniondues,andhavingpoliticalinfluence….AndmyanswertothiswouldbetheyareshowingthemselvestobeasridiculousasmanymembersoftheAmericanpublicthinktheyare.Whathappenedtopragmatism,whathappenedtocompetition,andwhatactuallyhappenedtowinning?MaybeitwouldbegreatfortheDemocraticPartytolosethesupportoflaborunionsbecausequitehonestlyalotoflaborunionsarewhatholdsAmericanbackandkeepsusfrombeingasgoodaswecanbe.32

Moreover,Right‐wingradiopersonalityRushLimbaughdeclaredonOctober19,2009,“Untilwegetridoftheunions,we’renotgoingtohaveanychangeinpublicschools.Ifyouwanttocleanuptheschoolsgetridoftheunions.”33

ThecommentsabovearereflectiveofRight‐wingactivists,butCentrist‐journalistsalsoexpressthesamepointofview.PeterHart,whoistheDirectorofActivismat

31MichaelA.Fletcher,“Obamaseeksaccountabilityinunderachievingschools,”BostonGlobe(March2,2010).InternetSource.32“Unionbusting:Right‐wingmediarelentlesslyattackworkerrepresentation,”MediaMattersforAmerica(August5,2009).InternetSource.33“UnionBustings:Right‐wingMediaRelentlesslyAttackWorkerOrganizations,”UENewsUpdate(August12,2010).InternetSource.

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FairnessandAccuracyinReporting,elaborates,

Unionsofanysortaregoingtoprovokeirefromconservativespundits.ButsomeofthemostvocaloppositiontoteachersunionscomesfromCenter‐Leftpundits.PartoftheexplanationmightbethatcorporatemediacoverageofAmericanpoliticsinvariablycounselstheDemocratstomovetotheright,andaneasywaytodemonstratelackofallegiancetotheleftistoattackteachers,whoareanimportantpartoftheDemocrats’progressiveelectoralbase.34

AsanexampleofwhatHartdescribes,onJuly21,2008,Newsweek’sJonathanAltersuggestedthatPresidential‐candidateObamashouldtellteacherunions“theymustchangetheirfocusfromjobsecurityandtheprotectionofineffectiveteacherstohigherpayandtrueaccountabilityforperformance—orfaceextinction.”35Further,afterObamawaselectedandhehadintroducedRacetotheTop,TheNewYorkTimes’columnistandPBSNewsHouranalystDavidBrooksopined:“ObamahastakenonaDemocraticconstituency,theteachersunions,withacouragenotseensinceGeorgeW.Bushtookonanti‐immigrationforcesinhisownparty.”36Moreover,onJanuary28,2010Newsweek’sJoeKleindeclared,“unionsandtheirminionsintheDemocraticParty,havebeenareactionaryforceineducationreformfortoolong.”37Theeducational“reforms”Kleinreferredtoisthemovementtoprivatizeeducationandeliminateteacherunions.38Therefore,itisnotaccidentalthatpublicworkerunionsarethetargetinStevenGreenhut’sPlunder!:HowPublicEmployeeUnionsareRaidingTreasuriesControllingOurLivesandBankruptingtheNation.II.)Greenhut’sPlunder!:Background,Premise,andArgumentsStevenGreenhut’sbook,Plunder!,canbeexaminedwithinthecontextoftheNeo‐Liberalanti‐union“consensusbuilding”campaignstrategydiscussedabove.There‐fore,Plunder!isintegraltoathree‐and‐a‐halfdecadelong,butrecentlyintensified,34PeterHart,“First,BashTeachers:Mediafindascapegoatforeducationalfailure,”Commondreams.org(September10,2010).InternetSource.35Hart(2010).InternetSource.36DavidBooks,“GettingObamaRight:WhoisBarackObama,”TheNewYorkTimes(March11,2010).InternetSource.37JoeKlein,WhyWe’reFailingOurSchools,”Time(January28,2010).InternetSource.38Thisauthordoesnotconsidertheprivatizationofeducation“reform;”insteaditrepresentsa“counter‐revolution”aimedtodismantlethepublicsectorwhichcameaboutlargelyasaresultoftheradicalandprogressivedemandsandprotestsoftheworkingclassesoverthepast140years.Moreover,inhistoricalterms“reform”meanstheexpansionofpoliticalandeconomicopportunitiesandaccessfortheworkingclass,women,minorities,youth.See:Shutt(2009)p.230.

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assaultaimedtobustpublicworkerunions.Furthermore,Greenhutisaparticipantinacorporate‐Right‐wing‐Libertariannetworkthatiscommittedtotheroll‐backofNewDeal‐GreatSocietypoliciesandthedeepeningofNeo‐Liberalpolicies.Thatpoliticalagendaincludes:deregulation;cuttingtaxes;rollingbackthepublicsector;privatizinggovernmentservices;andbustingunions.Forexample,GreenhutwasdeputyeditorandcolumnistfortheLibertarian‐TheOrangeCountyRegister,whichisownedbytheIrvine,California‐basedFreedomCommunications.Thatcompany,whichisthetwelfthlargestmediaorganizationintheUnitedStates,statesasitsgoala“commitmenttotheidealsofindividualfreedom.”39TheRight‐wing‐Libertariananti‐unionnetworkcomplements,andoverlapswith,organizedcorporate‐WallStreetanti‐unionactivism.Greenhut’sinvolvementinthatnetworkexposeshowsingle‐issue“consensusbuilding”campaignsareorganized,financed,andoperate.GreenhutcurrentlyservesasdirectoroftheSanFrancisco‐basedPacificResearchInstitute’sJournalismCenter.ThePacificResearchInstitutestatesasitsgoalsthefollowing:1)“tostrikedownbarrierstoeconomicgrowthandinnovation;”and,2)“toidentifyandlimitharmfulgovernmentregulationsinthetechnologysector.”40Thatinstitutealsoproposesthat“theseprinciplesarebestencouragedthroughpoliciesthatemphasizeafreeeconomy,privateinitiative,andlimitedgovern‐ment.”41ThePacificResearchInstitute,whichwasfoundedin1979,alsoprofessesthat,“Nowmorethanever,itisvitalthatourpolicyresponsesareguidedbytheprinciplesthatbestpreservetheessenceofAmerica—itsentrepreneurialspirit,beliefinthedignityofindividuals,andvigilantdefenseofliberty.”42Between1985and2005,thatinstitutereceived$8,909,880incontributionsfromcorporations,foundations,andindividuals.43Thecorporatecontributorsincluded:Chevron‐Texaco,Exxon‐Mobile,FreedomCommunications,Microsoft,Pfizer,AT&T,andVerizon;whilethefoundationcontributorswere:CharlesKoch,LillyEndowment,SarahScaife,WaltonFamily,WilliamE.Simon,DeanWitter,andAnschultz.More‐over,membersofPRI’sBoardofDirectorsincludeventurecapitalist,high‐techsectorexecutives,realestatedevelopers,andbio‐medicalexecutives.ThatinstituteisalsoaffiliatedwiththeRight‐wingAmericanEnterpriseInstituteandtheLibertarianCatoInstitute.Greenhutisalsoeditor‐in‐chieffortheCalWatchdog.org,whichisaprojectofthePRIJournalismCenter.44Thatweb‐sitestatesthatitsgoalis“toholdthegovernmentaccountableforspendingandregulatoryprogramsbyexposinggovernmentwaste,fraud,andabusesofpower.”45TheBoardofDirectorsforCalwatchdog.comincludeindividualsfromTheOrangeCountyRegister,Eagle39See:“PreservingLiberty,”CompanyInformation,FreedomCommunications,Inc.InternetSource.40See:“AboutPacificResearchInstitute,”PacificResearchInstitute.InternetSource.41Ibid.42Ibid.43Ibid.44Ibid.45See:Calwatchdog.org.InternetSource.

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Publishers,theForumPress,andtheHooverInstitute.46Therefore,basedonGreenhut’sconnectionsitcanbesurmisedthathehasanideologicalandfinancialinterestintheassaultonpublicworkerunions.ThepremiseofGreenhut’sPlunder!isthatpublicworkerunionsareresponsibleforstateandlocalgovernmentbudgetdeficits,andthatcontinuingtopaythosesalariesandbenefitswillcausefurthercutsinsocialservicesandeventuallybankruptstateandlocalgovernments.Moreover,writinginthecontextofthecurrentstageoftheeconomiccrisisandtheinterwovenCaliforniabudgetcrisis,Greenhutclaims,“We’veseenamassivetransferinwealthfromtheprivatesectortothepublicsector,fromtaxpayerstotaxconsumers.Theresultisaclassofcoddled,overpaidandunder‐workedpublic‘servants’whosepayandretirementlevelscannotbesustainedwithoutcutbacksinpublicservicesandhighertaxes.”47Furthermore,Greenhutadds,“Thisuncontrolledspending,mostlytothebenefitofgovernmentworkersandnotforthebenefitofthepublic,istherealcauseofthefiscalproblemsfacingstateandlocalgovernment.”48Theauthoralsostates,“Insteadofofferingaccoladesandhonorsthepublicshouldbemadatthecurrentsituationandoughttoquestionwhatthesituationsaysaboutthenatureofoursociety.Weshouldbeoutragedthatthepublic’sservantshaveturnedintoourmasters.”49TheorganizationofPlunder!setsouttosubstantiateGreenhut’spremise.Inthefirstthreechapterstheauthorfocusesonpublicworkersalariesandbenefits,includingemployer‐employeefunded“defined‐benefit”pensions.50Greenhut’sviewisthatpublicworkersmake,onaverage,moreinsalarythanworkersintheprivatesector.Therearenumerousallegationsladenthroughoutthebook.Forexample,Greenhutpurportsthat,“InCalifornia,communitycollegestypicallypaytheirprofessors$100,000andmoreandtheseprofessionalsgetallsortsofextrapayforthingsthatprivatesectorprofessionalswouldassumeofthejob—suchasholdingofficehoursandteachingextraclasses.51Further,GreenhutallegesthatCalifornialeadsthenationwith“extremelyhighgovernmentsalaries.”52Reporting46Ibid.47Ibid.,p.99.48Ibid.49Ibid.,p.12.50A“defined‐benefit”pensionisbasedonemployersandemployeesmakingfinancialcontributionstoapublicpensionsystem,andtheemployeeisguaranteedaspecificpensionamountbasedonaformulawhichincludesyearsinservice,ageatretirement,andtheaverageofthefinalyearsofsalary.The“defined‐benefit”planisincontrasttoa“define‐contribution”401(k)accountwheretheemployeecon‐tributestoaprivateaccountandtheretirementpensionisdependentoninvest‐mentreturns.See:“Pensions,”Wikipedia.org.InternetSource.51Ibid.,pp.55‐56.52Ibid.,p.56.

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thattheaveragehouseholdincomeinthenationis$50,000,heposesthat,“Localgovernmentofficials,includingofficialsofallcategories…inCaliforniaarepaidonaverage$58,365peryear.”53Also,listingtheaveragesalariesforthenextninestates,allabove$50,000,Greenhut,comments,“Moreover,usingabasesalaryof$80,000forVallejo(California)firefighters,hestatesthat21outof190earnmorethan$200,000peryear,while77earnmorethan$170,000.”54HealsomakestheclaimthatmanypoliceinCaliforniaearnmorethan$200,000annually,ifovertimeisincluded.55Havingestablishedwhatheclaimspublicworkersearn,Greenhutallegesthat,withbenefits(healthinsurance,pensions,etc.),whathereferstoas“government‐workerelites”earnasignificantamountmorethanprivatesectorworkers.56Forexample,heclaimsthat“government‐workerelites”oftenearnmorethandouble[theamountprivatesectorworkersmake]intheirretirementyear.57[Inmanyunioncontractsthefinalyearofpublicworkeremploymentispivotalinestablishingtheamountpublicworkersearnfortheirpension.]Greenhutstressesthatis“perhapsthemoststrikingsymbolofanout‐of‐controlsystemthatisbankruptingcitiesandleadingtothecreationofatwo‐tieredsocietywherethegovernmentelitelivefarbetterthanthepublic.”58Healsoclaimsthatpublicworkershavenumerous,whathecalls,“scams”(or“spiking”)toboost“alreadygenerousbenefits.”Hecitesthefollowingasexamples:overtime;GoldenHandshakes—whereworkerscanretireearlywithadditionalyears‐in‐serviceofferedbythedistrictadministration;moveforlastyearofemploymenttoabetterpayingjob;and,receivetaxpayerfundedhealthinsuranceholidayspayandpensionbenefitsforseveralweeksafterbeingterminated.59Furthermore,theauthorquotesaDecember,2008theDepartmentofLabor’sBureauofLaborStatisticsreportthatstated,“Publicemployeesearnbenefitsworthanaverageof$13.38anhour…,[while]privatesectorworkersgot$7.98anhour—$11.90morethaninprivatebusiness.”60Focusingonthestatusofpoliceandfirefighters,Greenhutstates,“Iftheyworkfor30years,policiesandfirefighterscanretireintheirearly50’swith90percentoftheirlastyear’ssalary.”61HealsoemphasizesaLibertarian‐basedReasonPublicPolicyInstitutereportthatallegedthatmanyworkersearnwellabove$100,000(annually)inpensionsaftertheyretire,whilemanypolicehave$175,000ayearretirementpackagesandthatmostcanretireintheir50’s.HealsoreferstoaCaliforniaFoundationforFiscalRespon‐53Ibid.54Ibid.,p.8.55Ibid.,p.56.56Ibid.,p.9.57Ibid.,p.8.58Ibid.,p.9.59Ibid.,pp.60‐71.Alsosee:pp.24‐70.60Ibid.,p.54.61Ibid.,p.9.

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sibilityreportthatstatesintheCaliforniaPublicEmployeeRetirementSystem(CalPERS)thereare24retireeswhoearnmorethat$200,000annually,while5115earnmorethan$100,000.62Greenhutadds,thatifallCaliforniaretirementsystemsareincluded,8,205retireesearnmorethan$100,000annually.63Moreover,inachapterentitled,“ThePensionTsunami,”Greenhutwarnsthatbecauseofpublicworkerbenefits,stateandlocalgovernmentbudgetdeficits“willsoonimplode.”64Heexplains,“Thetermtsunamiistheappropriateonetodescribethepotentialdisasterloomingbecauseofthemassivepensionandotherbenefitincreasesgrantedtothepublicemployeesinthelastdecade.”65Inaddition,heposesthat“thecurrenttsunamiistheresultof‘overgenerousbenefits,chronicunderfundingandnowtrilliondollarstockmarketloses.’”66Forexample,hestates“somelocalitiesarefacingbankruptcytodealwithunfundedliabilityproblemsrelatedtogovernmentemployeepensions.”67Further,Greenhutproposesthat“thesituationwillleadtounsustainabledebtlevelsandanunsustainablelevelofunfundedliabilities.Thiswillburdenfuturegenerations,actually,italreadyisintolerablyburdeningandwillrestricteconomicopportunity.”68Acknowledgingtheurgencyofthefall‐outfromtheFall,2008financial‐economiccrisis,Greenhutaskshisreaders,“Dowereallywantasituation,wherecitieshavenoroomtomaneuverbecausetheymustspendthebulkoftheirbudgetsonpensionobligations?Dowereallywantallservicestosuffersothatanentirecasteof50‐somethingformeremployeescanlivelikeroyaltyonsalariesthatoftentopwhattheyearnedattheirpeakworkingyears?”69

62TheCaliforniaFoundationforFiscalResponsibility,formedin2009,iscommittedto“reformingCalifornia'spublicemployeeretirementbenefitsystem.”Itsmissionstatementdeclares:“TheCaliforniaFoundationforFiscalResponsibilityisa501(c)(3)organizationcommittedtoeducatingthepublicandkeydecisionmakersaboutCaliforniapublicemployeeretirementbenefitissuesanddevelopingfiscallyresponsiblesolutionsthatarefairtoemployees,employersandtaxpayers.CFFRbelievesmanagingthepensionandretireehealthcareobligationspromisedtopublicemployeesisthemostcriticalpublicfinanceissuefacingthestate.”Theadvisoryboardincludes:ScottBaugh,formerRepublicanmemberoftheStateAssembly;JonCoupal,memberoftheHowardJarvisTaxpayersAssociation;JohnMoorlach,memberoftheOrangeCountyBoardofSupervisors;RichardRider,memberSanDiegoTaxFighters;ReedRoyalty,memberoftheOrangeCountyTaxpayersAssociation;and,LewUhler,memberoftheNationalTaxLimitationCommittee.63Greenhut(2010)p.9.64Ibid.,p.9.65Ibid.,p.71.66Ibid.67Ibid.,p.26.68Ibid.,p.72.69Ibid.,p.98.

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Inchapterfive,theauthorputsparticularfocusonpublicworkerunionsandpoliticsinCalifornia.HeclaimsthatpublicemployeeunionsinCaliforniacontroltheDemocraticParty,whichinturn,heargues,providesincreasedsalariesandbenefitsandprotectionsforthoseworkers.Hestatesthatthestate“legislature…merely[carry]waterforCalifornia’sgovernmentunionsbosses,thepeoplewiththerealpowerinthestate.”70Heproposesthatpartofthereasonforthisisthatpublic“unionshavealmostunlimitedmoneytooutspendrivals.”71Hediscussesseveralexampleswhereheclaimsunionsoutspenttheoppositionattemptingtoback‐upthisallegation.Theyincludethedefeatofthe1998Proposition226,whichwouldhave“…requiredunionstogetpermissionfrommembersbeforeusingunionduesforpoliticalpurposes;”72andthedefeatofRepublicanGovernorArnoldSchwarzenegger’sfourbudget“reform”initiativespresentedtotheCaliforniavotersin2005.73Simultaneously,GreenhutclaimedthatRepublicansarenot“asbeholdento,say,bigbusinessorpharmaceuticalcompaniesastheDemocratsaretoorganizedlabor.”74Hefurtherallegesthat“business…rarelycanunifyonanything,exceptperhaps,stoppingsomeofthemostnoxiousjob‐killerbillsthatmightbeintroducedinthelegislature.”75GreenhutalsoemphasizesthatpublicunionsareresponsibleforCalifornia’sbudgetcrisis.Forexample,hestates,“Beforewelookatsolutionslet’srememberthesourceoftheproblem.Thisisnotcausedbytheeconomicconditions,badastheymightbe.Itisarevenueproblem.”76Headds,“Thisuncontrolledspendingtothebenefitofgovernmentworkersandnotforthebenefitofthepublic,istherealcauseofthefiscalproblemsfacingstateandlocalgovernments.”77TheauthoralsowarnshisreadersthatthepoliticalleverageofpublicunionswillonlyincreaseinCalifor‐niaowingtowhatheallegestobeagrowingpublicsectorinthestate.Tosupportthatpoint,hecitesstatisticsthatindicatedthat,in1998,16.1percentofworkersinCaliforniawereunionized,themajoritybeingpublicworkers,whilein2002thenumberhadincreasedto17.8percent.78Healsogivesasanexample,that,in1999,theServicesEmployeeInternationalUnionadded74,000healthcareworkerstoitsrolls.Heclaimsthatowingtounionencouragement,thestatelegislaturepassedpoliciesthatencouragedtheexpansionofpublicsectorhealth‐carejobs.Greenhutelaborates,“Noticethatthesegainscamethroughthecoerciveworldofpolitics,

70Ibid.,p.136.71Ibid.,pp.137‐138.72Ibid.,p.138.73Ibid.,pp.148‐156.74Ibid.,p.140.75Ibid.76Ibid.,p.99.77Ibid.78Ibid.,p.140.

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wherelegislatorsapprovednewmandatesthatforcedhomehealthcareworkersintounions.”79Greenhutalsotakesaimatpublicschoolteacherunions.Inachapterentitled“TheEducationRacket”hearguesthatpubliceducationisa“governmentmonopoly”whichiscontrolledbypublicunions.80AccordingtoGreenhut,notonlydotheseunionsexploittaxpayers,causinghighertaxesandincreasinggovernmentdebt,theyalsoblockthepossibilityforeducationalreformandbudgetaryreform.81Theso‐called“reforms”heisreferringtoarebasedonwhathecallsa“competitive‐market”model,whichinvolvesschoolvouchers,charterschools,tuitiontax‐credits,andhome‐schooling.WhatGreenhutproposesis“schoolsoughttobeproducedinatruefreemarket.Thenmostofthemoneywouldgototheclassroomundersuchasystem,studentsandparentswouldbecustomerswhowouldshoparoundforthebestdeal.”82Greenhut,infact,claimsthat“inthepublic‐schoolsystem,unioncontrolhascreatedanalmostcriminallevelofmismanagementandabusethathasledtoafarlowerstandardofachievementforthe90percentofchildrenwhoareeducatedinthegovernment‐operatedpublicschools.”83Moreover,theauthorgoesevenfurtherwhenheblamesteacherunionsforthe“nation’sinnercityschools[that]arefailing[,]leadingtoonegenerationafteranotherofpovertyandothersocialills.”Greenhutsurmises,“Essentiallythelunaticsarerunningtheasylum,andtheyappeartoberunningitfortheirownbenefit.”84Inthefinalchapter,whichisentitled“It’sTimeformorethanOutrage,”GreenhutproposesapoliticalprogramaimedtomobilizeConservative,Right‐wing,andLibertarianforcestochallengetheallegedinfluenceofpublicunions.85Heconcedesthattherearenoquickfixestotheeconomiccrisis,butaddsthat“Americadoesneedtostartbyrecognizingthatthecurrent[budgetdeficit]situation[onthestatelevel]isunsustainable.”86Heproposes“reforms”inthefollowingareas:PensionandPayReform;SchoolReform;UnionReform;LawEnforcementReform;andTaxandBudgetReform.Thethrustofthese“reforms”isaimedatdestroyingpublicworkerunions,privatizingpublicservices,raidingthepensionsofpublicemployees,andreducingtaxesandsocialservices.Forexample,relatedtoreformingpublicunionpensionsGreenhutborrowedanagendafromtheCaliforniaFoundationforFiscalResponsibility.MarciaFritz,thePresidentofthatorganization,arguedthat“thecoreofanyreformoughttobepoliciesthatbenefittaxpayersandtheemployer/agency,notwhatbenefitstheunionanditsmem‐

79Ibid.80Ibid.,pp.100‐136.81Ibid.,p.164.82Ibid.,p.8.83Ibid.,p.166.84Ibid.,p.173.85Ibid.,pp.224‐241.86Ibid.,pp.222.

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bers.”87AmongthemanyproposalsGreenhutendorsesinclude:1)temporarilysuspensionoftheearningsofserviceyearsforpensionbenefitsorrequireemployeestopayemployerpensioncosts;2)getrideof“airtime”creditsthatallowemployeesto“purchaserisk‐freeannuitiesforfiveserviceyearstotackontotheir‘yearsworked’formula;”3)areductioninthecompensationtimeoff(sickdays,holidays,vacationdays);and,4)creatingasecondretirementtierfornewemployeesbasedon“defined‐contributionplans;and,5)endso‐called“spiking”options.88Furthermore,despiteclaimingthatthereformsheproposesarereasonable,Greenhutdeclares,

Publicunionsshouldbeoutlawed.Thereisabsolutelynopublicgoodservedbyit,especiallyinaworldofcivilserviceprotections.Infact,suchunionizationisarelativelyrecentphenomenon.Weneedtorunbacktheclockhere.Legislaturesshouldimposetighterrestrictionsonunionpoliticalcontributions.Statesshouldalsopasspaycheckprotectionmeasuresthatallowunionmemberstowithholdduespaymentsthatareusedforpoliticalpurposes….Unionpoweriswhatleadstotheseabsurdbenefitlevelsandworkrules,soreducingunionpowerisessentialinordertoreformanyofthesegovernmentsystems.89

Heconcludeshisargumentmakingacallforaction.Hedeclared,“It’stimeforthegrassroots—andnotjustconservativesorlibertarians,buteveryonewhoiscon‐cernedaboutthemisuseofresourcesandabuseofpowertobenefitaspecialgroupofpowerfulAmericanstogetagitatedandtodecrytheplunderingofAmerica.”90III.)Greenhut’sPlunder!:ACritiqueStevenGreenhut’sPlunder!hasplayedaroleinlegitimizingtheattackonpublicworkerpensions.ThiscanbeobservedowingtothefavorableConservative‐Right‐wing‐Libertarianreviewsthebookhasreceived.Forexample,Libertarian‐CatoInstitutereviewerChrisEdwardshaswritten,“Greenhut’sbookprovidesatimelyguidetothechallengesaheadinreforminggovernment’sandrestrainingtheself‐servingappetitesofgovernmentunions.”91TheWashingtonTimes’JeremyLottstates,“[Greenhut]knowswherethebodiesareburiedandcamepreparedwithpick

87Ibid.,p.225.88Ibid.,pp.224‐225.89Ibid.,p.223.90Ibid.,p.240.91See:TheForumPress.com./ThePressRoom—Plunder.html.InternetSource.

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andshovel.”92WhileMike“Mish”Shedrockstates,“Plundertakesalookattheperverseincentivesthatbringtogethercorruptpoliticalandpublicunionstorapetaxpayers.”93Hecontinues,“Plunderisabookyouneedtoread,becauseuntilyoudo,youcannotpossiblyfathomhowyouarebeingplayedforsuckersbygreedyunionsandpoliticiansinbedwiththoseunions.”SincethepublicationofhisbookGreenhuthaswrittenscoresofnewspapercolumnsandparticipatedinscoresofradioandtelevisioninterterviews.94Thesetypesofinterventionsarecentraltoa“consensusbuilding”campaign.Furthermore,candidatesrunningforelectiveofficeinCaliforniaintheFall,2010alsoparrotedthesameargumentsandproposalsthatGreenhuthaspresented.ThemajorityofthosecandidateswereRepublicans,likebillionaireMegWhitman,whoranforGovernorofCalifornia,butmanyDemocraticcandidatesalsoutilizedsomeofthesamepoints.(Seebelow)WhetherthesecandidatestookideasdirectlyfromGreenhut,ornot,thereisnodoubthisbookhashadinfluenceinthe“consensus‐building”campaignattackingpublicworkerunionpensions.Nonetheless,Greenhut’sbookcanbeheldupforcriticalscrutiny.Thebookaimstoinformandlegitimizetheanti‐publicworker“consensus‐building”campaign,withafocusonpublicworkerpensions.TheintentofGreenhut’s“scholarly”workispolitical:Itcontributestothedecades‐longassaultaimedtorollbackandprivatizethepublicsector.Also,Greenhut’sproposedsolutionsareintegraltotheNeo‐Liberalprojecttobustunionsandraidpublicworkerpensions.Moreover,thebookaimstomobilizedoppositiontopublicworkerpensions.Therearefivecharac‐teristics,asnotedabove,thata“scholarly”ideological‐orientedbookusestomakeitsargument.Thoseworksgenerally:1)discussthespecificissuewithouthistoricaland/orintellectualcontext;2)exaggeratesanecdotalorisolatedinformationthatback‐uptheargumentpresented,whileclaimingittobeuniversal;3)makeallegationswithoutsubstantial,oraccurate,factualsupport;4)catertotheracialprejudicesandeconomicfearsofsusceptibleworkingclasswhiteswhoarethetargetedpopulation;and,5)advocateimplementationofrelevantNeo‐Liberalorientedapproaches.ThefollowingcritiquewillshowhowGreenhutworkemployeesthosefivecharacteristics.1.)Discussingthespecificissuewithouthistoricaland/orintellectualcontext.Theauthoriscorrectaboutthesignificanceofthestateandlocalgovernmentbudgetcrises.Forexample,thebudgetsituationCaliforniafacesisnotsustainablewithinthecurrentideological‐political‐economicorder.Nevertheless,Greenhutlaystheblameinthewrongplace.Heblamespublicemployeeunionsalariesandbenefitpackagesforthestateandlocalgovernmentbudgetcrises.However,publicworkerunionsarenotthecauseofthosebudgetdeficits.Thecauseisrootedinthe92See:JeremyLott,“BookReview:Plunder!,”TheWashingtonTimes(March7,2010).93Mike“Mish”Shedrock,“FiveThumbsUpforStevenGreenhut’sPlunder!,”Mish’sGlobalEconomicTrendAnalysis(May10,2010).InternetSource.94See:TheForumPress.com./ThePressRoom—Plunder.html.

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financial‐economiccrisiswhichmanifestedin2007‐2008andabettedbyfourdecadesofUnitedStatesNeo‐Liberalpoliciescombinedwithgeneralized(andspecific)economicandpoliticalconditionsatthestateandlocallevels.TheNeo‐Liberalpoliciesthatprecipitatedtheeconomiccrashin2007‐2008include:1)thederegulationofthebankingsectorcreatingtheconditionsforaspeculativeprofitaccumulationmodelbasedonFinancialization;2)aregressivetaxstructureinvolvingmassivetaxcutsforthewealthy;3)hugecutsinsocialwelfareandeducation,whilecarryingoutprivatizationofthoseservices.Thesepolicieshavebeenunderscoredbyalackofinvestmentindomesticproductionbythedominantcorporateandinvestorclass.Further,relatedtoCalifornia,owingtospecificconstitutionalimpedimentsandtaxpolicies,thestatehashadachronicbudgetdeficitfordecades,exacerbatedbythe2007‐2008financialmeltdown.Thesub‐primemortgagecrisisthateruptedin2008greatlyintensifiedthefinancial‐economiccrisisinCalifornia.95Forexample,Californiahadthesecondhighestnumberofhomeforeclosuresinthenationby2010.96In2008,thestateexperi‐enced236,000foreclosures,morethanthepreviousnineyearscombined;whilebetween2007and2010therewere1.1millionforeclosures.Thepriceforahousealsodeclinedsignificantlyduringthatperiod.Forexample,themedianpriceforahousein2006was$594,800,whilein2009themedianpricedroppedto$271,000.Thesedevelopmentshaveunderminedconsumerdemand,andledtoevenmorejoblossesandforeclosures.Forexample,betweenJuly,2007andDecember,2009thestatelostonemillionnon‐farmjobs.97Therefore,thestateunemploymentrateincreasedfrom5.4percentin2007to7.2percentin2008;andto12.4percentin2009.InMay,2010theunemploymentratewas12.4percent.98ThiswasthelargestunemploymentrateinCaliforniain26years.Thesenumbersarerespon‐sibleforadownwardcyclecausingtaxrevenuestoseverelydecline,addingtothestateandlocalgovernmentdeficits.Forexample,thestatebudgetdeficitwas$26.3billionfor2008‐2009;$19.1billionfor2009‐2010;andisexpectedtobeover$25.4

95See:RichardWalker,“TheGoldenStateAdrift,”NewLeftReview,66(November‐December,2010).InternetSource.Walkerexplains,“WhenthehousingbubbleburstCaliforniaendedupwithmorebadloansandforeclosuresthananywhereelse,anditsmortgagebankers[CountrywideFinancial,AmeriquestMortgageBank,NewCenturyFinancial,FirstFranklinBank,etc.]wereamongthemostprominentfailureinthefinancialmeltdown.”Headds,“TheprinciplefountofmortgageoriginationwasCalifornia…..Californiawasresponsibleforastunning56percentofthe$1.38trillioninsub‐primesissuednationallyin05‐07.”96“Californiahasnation’s2ndhighestforeclosurerate;Sacramento14th,”SacramentoBusinessJournal(July29,2010).InternetSource.97“FastFactsonCalifornia’sEconomy,”CalChamber2010.InternetSource.98Ibid.

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billionfor2011‐2012.TheCaliforniatotalrepresentsapproximately20percentoftotalforallstates.99Thefinancial‐economiccrisisinCaliforniahasbeenintensifiedbyconstitutionalimpediments.ThissituationiscausedbyNeo‐Liberalpoliciesandconstitutionalprocedures,suchastherequirementfora2/3rdsvoteforpassageofbudgetsandtaxincreases.TheNeo‐Liberaltaxpoliciesarelargelyresponsibleforlong‐termstructuralimbalancesinthetaxstructure.ThemostsignificantexampleisProposition13,whichwaspassedin1978.Thatproposition,whichcappedlocalpropertytaxes,haspreventedpropertytaxesfromreflectingtheincreasevalueofpropertyoverthepastthreedecades,significantlylimitingtaxrevenues.PoliticalScientistAlanJ.Auerbachelaborates,“propertytaxesraiseasmallershareofincomeinCaliforniathantheydofortheUnitedStatesasawhole.ThisisallthemoreremarkablegiventheveryhighpropertyvaluesinCalifornia;iftaxeswereleviedatthesameeffectiveratesinCaliforniaandtheUnitedStatesasawhole,thenthepropertytax‐incomeratiowouldbehigherinCaliforniathanintheUnitedStates.”100Therefore,owingtoProposition13,thestatehasbeenforcedtorelyonpersonalincometaxesandsalestaxesforasignificantportionofitsrevenue.Thishasprovedtobeproblematicbecauseoftherecurringeconomicdownturns.Forexample,statetaxrevenuesdroppedfrom$54billionin2007‐2008to$45billionin2008‐2009asadirectresultofthe2007‐2008crash.TheironyoftheeconomicrealityinCaliforniaisthatthestateistheworld’seighthlargesteconomy,withaGrossNationalProductof$1.9trillion;registeredthehighesteconomicoutputinthecountryin2009;andtwentypercent(80)oftheUnitedStates’billionairesliveinthestate.101Moreover,thetopone‐percentofincomeearnershavedoubledtheirshareofincomeoverthepast20yearsfrom13to25percent.10299See:KateRandall,“USstatebudgetdeficitscouldtop$140billion,”WorldSocialistWebSite(January24,2011).InternetSource.100AlanJ.Auerbach,“California’sFutureTaxSystem,”TheCaliforniaJournalofPoliticsandPolicy,2(3)2010,p.10.InternetSource.101TimRedmond,“80billionaires—andCaliforniabroke?,”SanFranciscoBayGuardian(December15,2010).InternetSource.102JimMiller,“FundingCalifornia’sFuture,”HuffingtonPost(April13,2010).InternetSource.TimRedmondwrote:“Ataxincreaseofabout$20billionwouldsecureourpublicservicesforyearstocomewithaverytinyimpactonoureconomicactivity.Surely1%ofourGDPcanbeharnessedtofundtheservicesthatwemusthaveforbroadlysharedprosperityinthisstate.Letmetakeitastepfurther.IjustwentthroughtheForbes400listoftherichestAmericansandstartedcounting,andguesswhat?Afull80ofthe400liveinCalifornia.That'soneoutofeveryfivebillionairesinAmerica,livingrighthereinastatethatcan'taffordtoeducateitskids.ThenItookoutmycalculatorandaddedupalongrowofnumbersandgotabigone:ThetotalnetworthofthebillionairesinCaliforniais$231.8billion.Tenpercentofthatwipesoutthebudgetdeficit.Andthatdoesn'tevencountthefolksworth$900millionorless;theydidn'tmakethelist.”See:Redmond(December15,2010).

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Themainconstitutionalimpedimentisthe2/3rdsrequirement.The2/3rdsvoterequiresthatabudgetcanonlybepassedbya“supermajority”inthestatelegislature.Proposition13addeda2/3rdsrequirementtoincreasetaxes.The2/3rdsrequirementforpassingthebudgetwaspassedin1933inthemidstoftheGreatDepression.Therequirementwouldonlybeutilizediftherewasafive‐percentincreaseinthebudgetfromone‐yeartothenext.In1962,thevotersdecidedtherequirementwouldbeusedeveryyear.The2/3rdrequirementisusedinonlytwootherstates,andnolocalgovernmentinthestateusesitasameanstopassbudgets.Thepoliticalimplicationofthe2/3rdsrequirementisthattheRepublicanminorityinthestatelegislaturecanholdthepassageofthebudgethostageandpreventtaxincreases.Asanindicationofthesignificanceofthisleverage,themarginaltaxrateforthetoptaxbracketwas11in1980percent,whileitis9.3percenttoday.103Ifthatratewasrestoredthestatewouldgenerateanadditional$5billionannually.Furthermore,thecorporatetaxrateis11percenttoday,whileitwas15percentin1980.Ironically,whenthevotersendorsedthe2/3rdrequirementin1962,thestatetreasurywasalways“flush”becauseofagrowingeconomy,andRepublicanlegislatorsweregenerallyfiscal“moderates.”The2/3rdsrequirementtopassabudgetwasrescindedtoa“simplemajority”bythevotersintheNovember,2010election;however,the2/3rdsrequirementstillholdsfortaxbills.104Thevotersalsopassedapropositionrequiringa2/3rdsvotetoraisefees.Despiteoverturningtherequirementforpassageofabudget,therestrictionsonrevenueraisingwillcontinuetobeproblematic.2.)Exaggerateanecdotalorisolatedinformationthatback­uptheargumentpresented,whileclaimingittobeuniversal.InattemptingtomakehiscaseGreenhutusesahighlyselectivemethodology.Thepremiseofhisargumentstartswithanassessmentofpublicworkersalariesandbenefits.Hecommentsonsalaryfiguresasifallpublicworkersmadethesameamount.Forexample,heclaimsthatCaliforniaCommunityCollegeprofessorsearnmorethan$100,000annually.Heignoresthespecificcontractualsalaryschedulesthateachcollegedistrictadherestowithitsemployees.Infact,mostcommunitycollegeteachersearnmuchlessthanthatamount.Forexample,assessingthesalaryschedulesoffiveregionallydiversecommunitycollegedistrictsinCalifornia—Shasta‐Tehama‐Trinity,Yosemite,Cerritos,Peralta,andSanMateo—exposesGreenhut’sdistortion.InthosefivedistrictstheaveragestartingsalaryforregularfacultywithonlyaMaster’sdegreewas$47,154;withthesalaryincreasingto$68,487aftertenyearsofteaching;$85,274after20yearsofteaching,and$91,958beingthetopstepupto30yearsofservice.Thestartingsalaryforfacultywithadoctorateaveraged$56,836;withthesalaryincreasingto$78,003aftertenyearsof103Ibid.104See:GeorgeLakoff,“ThePollDemocratsNeedtoKnowAbout:Framing,ValueShifting,theCaliforniaBudgetCrisis,andWhyDemocratsSoOftenActLikeRepublicans,”TheCaliforniaJournalofPoliticsandPolicy,2(1)2010.InternetSource.

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teaching;$91,256after20yearsteaching;andthetopstepwas$98,103.Moreover,manycommunitycollegeteachersdonotteachformorethan20years,becausetheyprobablyworkedasanadjunct(part‐timer)formanyyearsbeforetheywerehiredfull‐time.Furthermore,30percentofcommunitycollegefacultyarehourly‐wagedpart‐timers,makingonlyathirdofwhatfull‐timeteachersearn.Itistruethatpublicsectorexecutives,managers,andadministratorsgenerallymakemorethan$100,000,buttheyrepresentasmallpercentageofpublicemployees.Greenhutpurportsthatthereare24retireeswhoearnmorethat$200,000annually,while5115earnmorethan$100,000fromtheCalPERSretirementsystem.105GreenhutaddsthatifallCaliforniaretirementsystemsareincluded,8,205retireesearnmorethan$100,000annually.106Nonetheless,accordingtotheNovember,2010issueofCalPERSFactsataGlacecurrentlythereare492,513CalPERSretirees,whilethereare1,134,397membersareeitheractivelyworking,orinactive,butnotdrawingapension.107ThenumberofretireesreceivingapensionfromCALStrsis203,649.Therefore,Greenhut’sfigureof24retireesearningover$200,000annuallyfromCalPERSrepresents.0000487percentofallCalPERSretirees,whilethe8,205earningover$100,000represents.01131percentofallpublicworkerretirees.Asthesepercentagesindicatetherearepublicsectorexecutivesandmanagerswhomakemorethan$100,000inpensionsannually,buttheyrepresentaninfinitesimalnumberofpublicemployeesreceivingpensions.108Furthermore,

105TheCaliforniaFoundationforFiscalResponsibilitywasformedin2009com‐mittedto“reformingCalifornia'spublicemployeeretirementbenefitsystem.”Itsmissionstatementdeclares:TheCaliforniaFoundationforFiscalResponsibilityisa501(c)(3)organizationcommittedtoeducatingthepublicandkeydecisionmakersaboutCaliforniapublicemployeeretirementbenefitissuesanddevelopingfiscallyresponsiblesolutionsthatarefairtoemployees,employersandtaxpayers.CFFRbelievesmanagingthepensionandretireehealthcareobligationspromisedtopublicemployeesisthemostcriticalpublicfinanceissuefacingthestate.Theadvisoryboardincludes:ScottBaugh,formerRepublicanmemberoftheStateAssembly;JonCoupal,memberoftheHowardJarvisTaxpayersAssociation;JohnMoorlach,memberoftheOrangeCountyBoardofSupervisors;RichardRider,memberSanDiegoTaxFighters;ReedRoyalty,memberoftheOrangeCountyTaxpayersAssociation;and,LewUhler,memberoftheNationalTaxLimitationCommittee.106Greenhut(2010)p.9.107“RetirementandMembership,”CalPERSFactsataGlace,(December,2010).InternetSource.108JournalistChrisPrevattelaborates,“Therankandfileemployeesdonotreceiveexcessiveorbloatedpensionbenefits.Infact,seniorexecutivesarethepeoplegettingbloatedpensionpayouts.Thesemanagerscontributenothingtotheemployeeshareoftheirpensionbenefits,andtheygetthehighestpayouts.Andevenwiththeexcessiveretirementpayoutsformanagersfactoredin,theaverage

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CalPERSretireestakehomeonaverageof$2,188permonthafter19.6yearsofemployment;retiredschoolemployeeshaveanaveragemonthlyincomeof$1,192afteranaverageof16.8yearsofemployment;andretiredstateemployeesaverageamonthlypensionof$2,499basedon23.1yearsofemployment.109Also,78percentofCalPERSretireeshaveanannualpensionof$36,000,orless.Significantly,$36,000isconsideredbelowthepovertylevelforafamilyoftwo.PoliticalObserverCatherineD.Alexander,elaborates,“Withtheannualgrossfigure…dividedby12months,[the]averageCalPERSschoolsystemretireeat$1,192isnotonlylivingatpovertylevel,theyarenotachievingaCaliforniaornationalminimumwagefigureafteryearsofretirementcontributions,whichwouldreachanannualminimumwagelevelwitha$1,386.67monthlygrossretirementbenefit,beforetaxes.”110

Greenhut’sallegationthatpublicworkersmakeonaveragemorethanprivatesectorworkersisalsofalse.111Ajointreport,issuedin2009byTheCenterforWageandEmploymentDynamicsattheUniversityofCalifornia,BerkeleyinconjunctionwithProfessorJefferyKeefeatRutgersUniversityin2009,concludedthatpublicworkersearnsevenpercentlessthatprivatesectorworkers,butmakeaboutthesameamountafterbenefitsandcompensationarefactoredin.112Thereport,whichfocusesoneducationlevels,alsostatesthat55percentofpublicemployeessurveyedhadacollegedegree,while35percentoftheprivatesectorworkershadacollegedegree.Therefore,co‐authorSylviaAllegretto,observers,“publicemployeesdonotgetthesamereturnfortheireducationlevelasprivatesectoremployees.”113Thereport,whichexcludedself‐employed,part‐time,agricultural,anddomestic

annualpayoutforGeneralMembersintheentire[OrangeCountyEmployee’sRetirementSystem]was$30,108in2009.”See:ChrisPrevatt,“TimetoStopdemonizingpublicemployees;theirpay,andpensions,”TheLiberalOC.com(August9,2010).InternetSource.109Alexander(November17,2010).InternetSource.110Ibid.111AreportissuedbytheCaliforniaCenterforPublicPolicyonOctober6,2010makesthesameassertion.Infact,thereportparallelsthesameargumentsthatGreenhutmakesinPlunder!MaterialsforthereportwereprovidedbyStevenGreenhut,theCaliforniaBudgetProject,thePacificResearchInstitute,theCaliforniaFoundationforFiscalResponsibility,andtheEvergreenFreedomFoundation.See:LannyEbenstein,“ReformingPublicEmployeeCompensationandpensions,”CaliforniaCenterforPublicPolicy(October6,2010).InternetSource.112MarisaLopez,“Publicworkershighlypaid?Notexactly,”SFGate.com(October19,2010).InternetSource.See:SylviaA.AllegrettoandJefferyKeefe,“TheTruthaboutPublicEmployeesinCalifornia:TheyareNeitherOverpaidnorOvercompensated,”PolicyBrief,CenteronWageandEmploymentDynamics,UniversityofCalifornia,Berkeley(October,2010).InternetSource.113Ibid.

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workersintheprivatesector,challengesthenotionpromotedbyGreenhutthatpublicworkershavehighersalariesandretirementcompensationthanprivatesectorworkers.Thereportfurtherstates“thatpublicemployeesarenotoverpaidwhenyoumakeanapples‐to‐apples”comparisonofemployees’education,experienceandotherfactorsthatmightinfluencepay.”114ProfessorAllegrettoconcludes,“ItisimportanttokeepinmindthatahugestatelikeCalifornianeedsalotofworkerstokeepgoing—andbyandlargetheyarehighlyeducated,skilledworkerswhoneedtobefairlycompensated.ThistellsmethattheproblemsinCaliforniacertainlycouldnothavebeencausedbypensionsandcannotbecuredbypensions.”115

3.)Makeallegationswithoutsubstantial,oraccurate,factualsupport.GreenhutmiscaststhepoliticalinfluencepublicworkerunionshavewiththeDemocraticPartyinCaliforniawhenheclaimsthatthatparty“carrieswater”forpublicworkerunions.Onthenationalandstatelevels,publicworkerunionsdoprovideDemocraticPartycandidatesandpoliticiansfinancialcontributions,alongwithmanyothereconomicandsocialinterests.Also,unionsoftenmobilizerank‐and‐filememberstocampaignforDemocraticcandidatesrunningforelectiveofficeorfor/oragainstlaborrelatedstateballotpropositions.Publicunionsalsoproposeandadvocatespecificpoliticalagendasand/orissuesthataredesignedtobenefitorganizedlabor.Whythatsupportwouldbeaproblemtoanyoneinasupposed“pluralist‐democracy”iscurious.Pluralism,whichwaspopularizedbyPoliticalScientistRobertDahl,isbasedonthepremisethatnon‐governmentalgroups,ororganizations,mobilizeresourcestolobbythesupposed“neutral”politicalsystemwiththeintentofgainingfavorablepolicyoutcomes.116Furthermore,theDemo‐craticandRepublicanpartiesrelyonhistoricallyspecific“electoralcoalitions”forpoliticalsupport.Thosecoalitionsconsistofblocs,orgroups,whichprovidepoliticalsupport,includingcampaigncontributions,votercanvassing,andvotes,while,inturn,thepartiesand/orcandidaciesareexpectedtoprovidethosegroupswithaquidproquo.Therefore,unions,whichhavebeenamajorcomponentoftheDemocraticParty’selectoralcoalitionsincethe1930’s,alsoshouldcorrectlyexpectthatpartytorespondtoitspoliticalagenda.

Moreover,toassumethattheDemocraticParty“carr[ies]thewater”forpublicunionsignorespoliticalreality.Onthenationallevel,sincethemid‐1970’s,thecorporate‐WallStreetdrivenhegemonicprojecthasbeenNeo‐Liberalism,which,asnotedabove,iscommittedtobustingunions.That“hegemonicideology”establishestheparametersforpolicyformulation,policyoutcomes,andimplementation.Thus,thetwo‐partysystemoperateswithinthoseparameters.Assuggested,thatproject114Ibid.115Ibid.116See:RobertDahl,APrefacetoDemocraticTheory(Chicago:UniversityofChicagoPress,1956).

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hasamassedenormousresourcestopromoteandimplementthatagenda.Further‐more,theUnitedStateseconomyhasbeenrestructuredtowhereitnolongerrequiresalargewell‐paidworkingclass.Putanotherway,thecapitalistclass(inconcertwiththeFederalGovernment)increasinglymakeitclearthat“profits”aremoreimportanttothemthancreating“consumerdemand.”Moreover,theFinancializationprofitaccumulationmodelhascausedrecurringfinancial“bubbles”(dot.com,sub‐primemortgage,etc.),whichhavecollapsed,furthererodingthenationaleconomy.

Therefore,theDemocratsoperatewithinthecontextoftheNeo‐Liberalpoliticalparameters.ThiscanbeseenwithallthreeDemocraticPresidentialadminis‐trations,includingCarter,Clinton,andObama,sincethe1970’s.Thoseadminis‐tration’shavetakenmassivecontributionsfromunions,havepaidlip‐servicetounioninitiativesanddemands,andhaveselectivelysupportedsomepro‐unionissues,allthewhileimplementing(and/orcomplyingwith)policieswhichstructurallyunderminetheconditionsfororganizedlabor,inthisinstancebustingthepoliticalpowerofunionsandreducingtheirshareofthenation’ssurplus.BillClinton’ssupportfortheNorthAmericanFreeTradeAgreementin1994isanexample.HistoriansRoyRosenzweigandhisco‐authorsexplainedthat“NAFTAprovedapowerfulweaponinthehandsofemployers,whousedthespecterofafactoryshutdowntoforestallemployeedrivesforhigherpayandunionization.”117Moreover,“Someeconomistsestimatethatnearlyone‐quarterofallrecentgrowthinwageinequality(upto2008)derivedfromthisdownwardpressureofUnitedStateswages.”118BarackObama’ssupportfortheRacetotheTopeducationalrestructuringisanotherexample.

Theoverallresult,asnotedabove,hasbeenthedismantlementofprivatesectorunions,towheretodayonly7.4percentofprivatesectorworkersareunionized.Because36percentofpublicsectorworkersarestillunionized,itshouldnotbesurprisingthatsincethe2007‐2008financial‐economiccrisistherehasbeenanintensifiedeffortbydominateeconomicinterestsanditspoliticalcollaborators,includingtheleadershipoftheDemocraticParty,toweakenfurther,andpossibly,destroypublicunions.Furthermore,despitethisreality,onthenationalandstatelevels,privatesectorandpublicsectorunionleadershiphavecontinuedtosupporttheDemocraticParty,evenwhilethatpartyopenlyunderminesorganizedlabor,ingeneral,andtheinterestsofthe“rankandfile,”specifically.Moreover,unionleadership,byimplication,can(andgenerallydo)complywiththeconcessionsdemandedbythedominanteconomicandpoliticalinterests;policiesaimedagainsttheinterestsoftherank‐and‐file.

117RoyRosenzweig,NelsonLichtenstein,JoshuaBrown,DavidJaffee,WhoBuiltAmerica?:WorkingPeopleandtheNation’sHistory,VolumeII,ThirdEdition(NewYork:Bedford/St.Martins,2008)p.766.118Ibid.

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SpecificallyrelatedtoCalifornia,overthepastfourdecadestheDemocraticPartyandprivateandpublicsectorunionshavefollowedthesamepatternasthenationalleadership,withsomevariationsspecifictoCalifornia.ThepoliticalcenterinCaliforniahasbeenmovedtotheRightasithasonthenationallevel,evenwhileitappearsCaliforniaisprominentlya“Liberal”‐Democraticstate.TheunionshavecontributedtoDemocraticcandidatesfornationalandstatewideofficesandthestatelegislature.Moreover,Democraticelectedofficialshaveselectivelysupportedpro‐unioninitiatives.Forexample,DemocratGrayDavis,whowasGovernorbetween1998and2003,providedwageandbenefitincreasestotheprisonguardunionandincreasedthemultiplierforcalculatingpublicteacherpensions.However,thosefiscalpolicieshavebeenframedbyNeo‐Liberalism.Thus,GovernorsJerryBrown(1974‐1982)andDaviswerefiscallyconservative,whilemostDemocratsinthestatelegislature,havebeenforcedtoact,atbest,tominimizethecutstosocialwelfarespendingandeducationandchallengestolabor.Thispoliticalconundrumhasintensifiedsincethe2008financialcollapse.ThispartlyexplainswhyrecentlyDemocraticelectedofficialshavesoreadilyendorsedtheprivatizationofpubliceducationandjoinedtheattackonpublicworkerpensions.(Seebelow)Further,unionshavealsomobilizedresourcesandmanpowertosupport,ordefeat,specificstatewideballotpropositions.Thiswasthecasein1998whenunionsdefeatedthestate‐wideanti‐union“cardcheck”proposition,andin2005,whenteacher,publicsafety,andnurses’unionsorganizedtodefeatGovernorArnoldSchwarzenneger’sfouranti‐unionpropositions.But,asstatedabove,thatisnotsurprisinginasupposed“pluralist‐democracy.”However,thoseeffortsbyunionshavealsobeendefensiveinnatureinthewakeoftheRight‐wardthrustoftheNeo‐Liberaloffensive.4.)Catertotheracialprejudicesandeconomicfearsofsusceptibleworkingclasswhitesthatarethetargetedpopulation.TheoverallintentoftheGreenhutbookistomobilizeConservative,Right‐wing,andLibertarianforcestochallengetheallegedpoliticalpowerofpublicworkerunions.Thebookalsoaimstodivideanalreadyfragmentedworkingclassbyprovokingangeramongprivatesectornon‐unionworkersandtheunemployedagainstem‐ployed,orretired,unionizedpublicworkers.119Greenhut’stacticisintegraltowhatthedominanteconomicinterests,theRepublicanParty,theRight‐wing,andtheDemocraticPartyleadershiparecarryingouttodisorientanddistracttheworkingclasswhiletheyimplementthemassivetransferofwealthtothedominanteconomicinterests.Owingtothecurrentlevelofunemployment—whetheritistheofficialfigure,approximatelytenpercent,ortheactualfigure,somethingover20percent—andeconomicinsecuritythereisatremendousamountofunderstandableanxietyandangeramongtheworkingclassandtheunemployed.Furthermore,inthecontextofaso‐called“recovery”whichisnotgeneratingjobs,highratesof119See:“Labor’sComingClassWar:Private‐SectorUnionWorkersbegintonoticethattheirjobprospectsareatriskfromPublicEmployeeUnioncontracts,”TheWallStreetJournal(January4,2011).InternetSource.

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permanentstructuralunemploymenthavebecomeobvious.Certainly,thiscondi‐tioncreatesasituationwhereprivatesectorworkersandtheunemployedarevulnerabletothedemonizationoffellowpublicworkers,aswellasundocumentedMexicanimmigrants,orpeopleofMiddleEasterndescent,orwhomeverthedomi‐nantinterestschoosetotargetnext.JournalistMatthewRothschild,summarizes,“Thosewhorigthesystemandrewardthemselveswouldratherthatworkersfoughtamongthemselvesthanfocustheirangerupwards.”120

PrivatesectorworkersandtheunemployedaresusceptibletothisstrategybecauseofthecodelanguageGreenhut’susesinPlunder!Thatlanguagestressesthatunionizedpublicworkersareprivilegedowingtotheirsalariesandretirementbenefitsandtheircomfortablejobs.Thebookconstantlydrawsadistinctionbetweenpublicworkersandthetargetedpopulation.Forexample,theauthorcallspublicworkers“government‐elites,”implyingthattheyareinnotworkers,whichtheyare,butprivilegedindividualslivingoffofthelaborofothers.Healsoconstantlyseparatespublicworkersfrom“tax‐payers,”asifpublicworkersdon’tpaytaxes.Greenhutalsoconsistentlydistorts,orexaggerate,salariesandbenefitsthatpublicworkersearn.ToamplifyGreenhut’sploy,theauthorquotesaReasonmagazinearticle,whichdeclared,“Whydowework12to14hourdays,whilegovernmentemployeeswork9to5?Whyshouldweslaveawayatworkuntilthedaywedie,sowecanpayfortheearlyretirementsatage50oryoungerofpublicemployeeswhogettoplaygolffortherestoftheirlives?”121Infact,arecentPewCenterforthePeopleandthePeopleandthePresspolldeterminedthatsincethe2007‐2008financial‐economiccrisispublicopinionhasshiftedawayfromsupportingunions.122Thepollstatesthatpublicopiniongenerallyviewunionsfavorablyataround60percent,however,since2008thatratinghasdroppedto41percent.Thepollalsostatesthatthatpositionfallsamong“virtuallyeverydemographicandpoliticalgroup.”123Thepolldoesstatethatthatfiguregenerallydoesdropduringarecession.However,whethertheanti‐union“consensusbuilding”campaignhashelpedtocreatethiscurrentopinion,thatfiguredoesindicatethatthepublicissusceptibletotheassaultonpublicworkerpensions.

5.)AdvocateimplementationofrelevantNeo­Liberalorientedapproaches.TheproposalsthatGreenhutmakesinthechapterentitled“It’sTimeformorethanOutrage”arestrictlyoutoftheNeo‐Liberalplaybook.TheNeo‐Liberalpoliticalagendaincludes:1)eliminatingsocialprograms;2)cuttingtaxes;3)privatizingthepublicsector;4)deregulatingtheeconomy,and,5)smashingunions.Amongthe

120MatthewRothschild,“TheCynicalWaronPublicSectorWorkers,”TheProgressive(January3,2011).InternetSource.121Greenhut(2010)p.15.122“WhyisthePublicSuddenlydownonUnions?,CenterforAmericanProgress(July20,2010).InternetSource.123Ibid.

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proposalsGreenhutendorsesinclude:1)temporarilysuspensionoftheearningsofserviceyearsforpensionbenefitsorrequireemployeestopayemployerpensioncosts;2)getrideof“airtime”creditsthatallowemployeesto“purchaserisk‐freeannuitiesforfiveserviceyearstotackontotheir‘yearsworked’formula;”3)areductioninthecompensationtimeoff(sickdays,holidays,vacationdays);and,4)creatingasecondretirementtierfornewemployeesbasedon“defined‐contri‐butionplans;and,5)endso‐called“spiking”options.124Heposesthatpublicworkerpensionsarethecauseofstateandlocalgovernmentbudgetdeficits,andthattheyshouldbeeliminated.Healsoallegesthat“unfundedliabilities”area“tsunami”whichwillimplodedthosegovernments.However,asthispaperargues,thecauseofthecurrentstateandlocalgovernmentsbudgetdeficitsislargelybasedonthesameNeo‐Liberalassumptionsheproposes,andnotpublicworkerpensions.Specificallyrelatedto“unfundedliabilities,”whileagreeingthattherearesomepublicworkerpensionprogramsthatare“unfunded”becauseofthecurrentfinancial‐economiccrisis,PoliticalObserverJamesW.Russellexplains,“Somepublicpensionfundsarefullyfunded,othersoverfunded—yes,over‐funded—andothersunder‐funded,theonesthatselectivelyreceiveallthepressattentionandire.I’mstillwaitingtoseeanewspaperarticleaboutthemanypublicpensionfundsthatareinverygoodshapedespitetherecession.”125Further,Russellproposesthat“Reformsareonlyneededforthosepensionfundswhosebalancesofunfundedliabilitiesaregrowingonalongtermbasis.Intheworstofthosecases,slightchangesincontributionratesdeliverdramaticrevenueincreases.”126Moreover,iftheauthorandhisanti‐unionpoliticalassociateswereseriousaboutaddressingthebudgetdeficitstheywouldfirstcallforaprogressiveoverhaulofthehighlyregressivetaxstructuresatallgovernmentlevels.Onthenationallevel,theywouldimmediatelycallforare‐regulationofthefinancialsystem,whichwasthelynchpinforthe2007‐2008financial‐economiccrisis.Further,theywouldbeopposedtotheBush/ObamabailoutsofWallStreet;callformassivebudgetcutsforthemilitary;and,advocatetheterminationoftheBushtaxcutsforthewealthy.Also,explicitinGreenhut’sargumentiscallingforcuttingpublicworkersalaries.However,whatisnotacknowledgedbyGreenhutandhiscolleaguesisthatthosesalariesrepresents“purchasingpower,”which,inturn,creates“demand”foraneconomiccrisisthatisstarvingforconsumers.127Onthesurface,slashing“purchasingpower”seemsirrationalinacapitalistsociety,however,whatitexposesisthat“profits”aremoreimportanttothedominanteconomicintereststhan“markets,”whicharenotnearlyasprofitable.DespiteGreenhut’sallegedconcernfor“taxpayers,”therealagendaoftheassaultonpublicworkerpensionsisto:1)124Greenhut(2010)pp.224‐225.125JamesW.Russell,“UnfundedLiabilities:ARedHerring,”Portside,January6,2011.InternetSource.126Ibid.127Ibid.

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raidpublicworkersbenefitstohelppaythebanksofthefinancialcrash;2)feedthebankingindustrywithNeo‐Liberal401(k)defined‐contributionpensionplans;and,3)smashingthebargainingpowerofpublicworkers,whilesystematicallydestroyingthoseunions.128V.)California,theAssaultonPublicWorkerUnionPensions,andPolitics.Theassaultonpublicworkerdefined‐benefitpensionshasbecomefront‐and‐centerontheCaliforniapoliticalagendasincethe2007‐2008financial‐economiccrisis.129Thisissuehasemergedlargelybecausestateandlocalgovernmentsarefacinglarge(andgrowing)budgetdeficits,andpoliticianshavebeenlookingforwaystoreducethosedeficitswithoutraisingtaxes.Asdiscussedabove,thedeficitsarecausedbytherecentlyintensifiedstructuraleconomiccrisisofcapitalismabettedby35yearsofNeo‐Liberalpoliciesandcombinedwithspecificstateandlocalpoliticalandeconomicfactors.Furthermore,theBushandObamaadministrationshaverefusedtoprovidedirectbailoutstocoverstatebudgetdeficits.130Theresultingbudgetdeficitshaveledtolayoffsofpublicworkers,slashingsocialservices,andincreasinghighereducationtuition.Moreover,Californiahasloserevenuebecauseofprivateandpublicsectorlayoffs,structuralunemployment,housingforeclosures,deflatedhousingprices,andaregressivetaxbase.Sincestateandlocalgovernmentsprovidecontributionsforpublicworkerdefined‐benefitpensionsandmanyface“unfundedliabilities”intotheforeseeablefuture,publicworkerpensionshavebeenaddedtothelistofitemsslatedforcuts.Furthermore,theanti‐publicworkerunionpension“consensusbuilding”campaign—spurredbyGreenhut’sPlunder!—hasalsovigorouslyhelpedtopushthatissuetotheforefrontofCaliforniapolitics.

TherewereseverallegislativeeffortstorestructurepublicworkerpensionsrequirementscarriedoutbythestategovernmentintheSpringandSummer,2010.TakingupRepublicanGovernorArnoldSchwarzeneger’sprioritytodismantlepublicworkerpensionplans,StateSenatorDennisHollingsworth(R.‐Murietta)submittedabill(SB919)callingforpublicworkerpensionrestructuring.131The

128Ibid.Russellstates,thatreformisnottherealmotive,“Therealmotiveoftheenemiesofpublicpensions,thoughisnotprudentstewardshipofthefunds.Itistoeliminatethementirelyandreplacethem129JenniferBakerandDavidEarlCarpenter,“Attackondefined‐benefitretirementplansincreasing,”Education(May10,2010).InternetSource.130See:BarryGrey,“USFederalReservechiefrulesoutloanstostates,”WorldSocialistWebSite(January13,2011).InternetSource.131RepublicanGovernorArnoldSchwarzeneggerhadpushedforpublicworkerunionstoswitchfromdefined‐benefitretirementplanstodefined‐contribution401(k)planssince2005.Thatyearheplacedapropositiononthestateballottorestructurepensionplansfornewpublicsectorhires.However,theGovernordroppedthepropositionwhenhe[supposedly]realizeditwouldeliminatedeath

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billcalledfornewlyhiredworkerstobeplacedindefined‐contribution(401)kplans,therefore,creatingatwo‐tieredretirementsystem.Thelatterproposalwouldthrownewhiresintothevolatile(andunreliable)stockmarket.Also,thebillcalledfornewpublicworkerhiresworkinganadditionaltenyears,toage65,beforetheycouldretire,whilenewpublicsafetyworkerhireswouldberequiredtoworkanadditionsevenyears,toage57,beforetheycouldretire.Hollingsworthallegedthat,ifpassed,thebillwouldsave$110billionover30years.132

TheHollingsworthbillreceivedagreatdealpubliclyinthecorporateandRight‐wingprintmedia.133Forexample,theSanDiegoUnion­Tribuneeditorialized,“Thereissimplynoreasonthatnewstateemployeesshouldbeguaranteedretire‐mentbenefitsthatarefarmoregenerousthanthosetypicallyprovidedtoworkersintheprivatesector.”134Moreover,SchwarzeneggersolicitedaStanfordUniver‐sityInstituteforEconomicPolicyResearchanalysiswhichreportedinAprilthatpublicworkerpensionstateobligationsforthethreelargeretirementsystems(CalPERS,CalSTRS,andtheUniversityofCaliforniaRetirementSystem)hadover$400billionin(future)“unfundedliabilities.”Thereportclaimedthattheestimated“unfundedliabilities”forpublicemployeeworkerswas$240billion,andthefigureforteachersunionswas$157billion.Thisinformation,whichhadanalarmisttenor,wasusedprominentlyinbuildingthecaseforHollingsworth’sbill.Forexample,DavidCrane,SchwarzeneggerspecialassistantforJobsandEconomicGrowth,wroteinanop‐edpieceinTheLosAngelesTimesinearlyApril,“WhyshouldCalifornianscare?Becausethisyear’sunfundedpensionliabilityisnextyear’sbudgetcuttoimportantprograms.”135Craneadded,“Simplyput,thesinglemostimportantstepalegislatorcantaketoprotectprogramsandtaxpayersistoembracereform.”136

Moreover,whilepromotingSB919inJuneSchwarzeneggerdeclared,“Everyyearwearedivertingmoreandmoremoneyawayfromhighereducation,healthandhumanservices,publicsafety,parksandenvironmentalprotectiontopayforbenefitstowidowsofpoliceandfirefighterswhodiedinthelineofduty.”Acoalitionofpublicworkerunionswerealsopreparedtochallengethatproposition.See:CaliforniaSpecialElection‐2005,”Wikipedia.InternetSource.132DonThompson,“CaliforniaCommitteeeffectspensionreformbill,”BloomsbergBusinessweek(June15,2010).InternetSource133Forexamplesee:“CaliforniaPensionReform:AfairdealfortaxpayersandstateworkersinCalifornia,”NationalReviewOnline(April23,2010).InternetSource.134“Leveltheplayingfield:Hollingsworth’sbenefitsreformplannotnearlysweepingenough,”TheSanDiegoUnion­Tribune(April30,2010).InternetSource.135DavidCrane,“California’s$500billionpensiontimebomb,”TheLosAngelesTimes(April6,2010).InternetSource.Alsosee:“PensionBombTicksLouder,”TheWallStreetJournal(April27,2010).InternetSource.;EdDerman,“TheSkyisNotFallingatCalSTRS,”HuffPost(April15,2010).InternetSource.136Ibid.

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unsustainableretirementcosts,andwithoutaction,thosecostswillskyrocket.”137However,inlateJune,thebilldidnotgetoutoftheSenatePublicEmploymentandRetirementCommittee,owingtoaunanimousDemocraticPartyvoteof4‐2.AfterthatvotecommitteechairLouisCorrea(D.‐Anaheim)emphasizedthat“pensionchangesshouldbenegotiatedthroughcollectivebargainingagreementratherthanbythelawmakers.”138Healsostated,“Thesechangesshouldalreadybenegotiatedwithstateandlocalemployeeunions.”139

SanFranciscoAssemblypersonDemocratFionaMaintroducedanotherbillaimedtoaddressallegedpublicworkerpensionabusesintheStateAssembly.Thebill(SB1987)wasdesignedtoabolishtheuseofsickleaveandunusedvacationtimetofactorintothefinalpensioncalculation.140Thebillalsocurtailedso‐called“doubledipping,”wherepublicworkerswhoretiredfromajobinapublicretire‐mentsystemwouldhavetowaitsixmonthsbeforetheycouldtakeagovernmentjobinvolvedinthesameretirementsystem.However,severalunionsponsoredamendmentswereaddedtothebilltomakethetermsforretirementsettlements“bargainable”duringcontractnegotiations.141AssemblywomanMaagreedtotheamendments.ReflectinganunusualDemocratic‐Republicanconsensus,itpassedtheStateSenate28‐1andtheAssembly70‐0.Inresponsetothesuccessfulvote,backersofthebillwithdrewsupport,includingStateControllerJohnChiangandtheCaliforniaStateCountiesAssociation.MarciaFritzoftheCaliforniaFoundationforFiscalResponsibilitystated,“ThisbillwouldbeoneofthelastimportantactsoftheSchwarzeneggeradministration—anditappearsthegovernoragrees.”142OnOctober1,Schwarzennegger,whowasopposedtotheunionsponsoredamendments,vetoedthebill,stating,“Whilethisbillpurportstoaddressthisissuebysegregatingoutsomeofthefactorsthathaveallowedpensionspiking,insomeinstancesitstillallowslocalpensionboardstodeterminewhatisultimatelycountedinanemployee’spensioncalculator.Thisdoesnotprovideaconsistenttreatmenttoallemployees.”143AssemblypersonMareactedbysaying,“Sadly,contrarytohissupposedcommitmenttopensionreform,theGovernor’svetoofAB1987sendsamessagethatpension‘spiking’and‘doubledipping’isacceptable.”144

Whilethelegislativeeffortstorestructureunionpensionsweregoingon,stateandlocalgovernmentagencieswereactivelynegotiatingwithunionofficialsnew137Thompson(2010).InternetSource.138Ibid.139Ibid.140AparallelbillwassubmittedintheCaliforniaStateSenatebyDemocratJoeSimitian,whoservespartsofSanMateo,SantaClara,andSantaCruzcounties.141Derman(2010).142“Schwarzeneggeronkeypensionbell:Taxpayersdeservebetter,”SacramentoBee:CapitolAlert(October1,2010).InternetSource.143Ibid.144Ibid.

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contractswhichincludepensionrestructuring.Thisprocesshasleadtounionsmakingconcessionsallegedlytoaddressthestatebudgetcrisis.Forexample,inJune,theGovernor’scollectivebargainingrepresentativeandthebargainingunitsforfourpublicworkerunions,includingHighwayPatrol,fire‐fighters,healthandsocialserviceprofessionals,andpsychiatrictechniciansreachedtentativeagree‐mentonacontractwhichincludedpension“reform.”145Thesegroupsrepresenttwelvepercentofthe170,000unionizedpublicworkersinCalifornia.Theagreementonlyeffectednewhires.The“givebacks”includedincreasingtheretirementageforHighwayPatrolandfirefightersfrom50yearsto55,andfrom55to60fortheotherunits.Also,thedefinitionoffinalcompensationwouldreplacethesinglehighestyear’saveragewiththethreehighestyears’average,whichwouldreduce,oreliminate,theso‐calledpracticeof“spiking.”Finally,theemployeemonthlyretirementcontributionswouldincreasetotenpercentofpay.TheModestoBeereportedonJune19,2010,“Thestateestimatesthesavingsfromthe…dealat$72millioninthenextfiscalyear—adropinthebucketcomparedtothe$2.2millionthatcouldbesavedifallstatepublicemployeeunionsagreetosimilarreforms.”146

ThepublicworkerpensionissuealsobecameacentraltotheCalifornia’sGovernor’sraceleadinguptotheNovember2,2010election.TheDemocraticandRepublicancandidateswereformerCaliforniaGovernorJerryBrownandformerE‐BayCEOandbillionaireMegWhitman.Bothcandidateslatchedontothepublicworkerpensionissueaspartoftheircampaignstrategy.Whitman,whopremisedhercampaignonthetheme—“Californiahasagovernmentitcannolongerafford”—introducedaplansimilartotheHollingsworthbillduringthelead‐uptotheJuneprimaryelectionfortheRepublicannominationforGovernor.Whitman,whospentan$150millionofherpersonalwealthonhercampaign,declaredthe“thenextCaliforniagovernormusthavethecouragetoconfrontthepublic‐employeeunionsandreformthestatepensionsystem.Shortofraisingtaxesorcuttingeducationtothebone,thereisnootherwaytodrayuptheredinkinthebudget.”147Furthermore,toaddressthepensionissue,sheproposedthat,“Wehaveanobligationtobothtaxpayersandgovernmentworkerstofindasolutionthatwillguaranteethesolvencyofthestate’spensionfundwithoutrequiringhighertaxes.Wemustrisetheretirementagefornon‐publicsafetyworkersfrom55to65.Wemustrequirestateemployeestocontributealargerportionoftheirsalarytohelppayfortheirretirementbenefits.Wemustextendthevestingperiod,andwemustbringnewgovernmentworkersinunderadifferentdealwheretheyreceiveadefined‐contributionretirementplan

145“Democratsblockpensionreform,”TheModestoBee,(June20,2010).InternetSource.146Ibid.147MegWhitman,“CaliforniaPensionReform:AfairdealfortaxpayersandstateworkersinCalifornia,”NationalReviewOnline(April23,2010).InternetSource.

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similartothe401(k)plansthatmosttax‐payershave.”148

Duringthelead‐uptotheelectionWhitman’scampaignfacedseveralcontroversies.Oneofthecontroversiesrelatedtothepensionissue.EarlyinhercampaignWhitmanhadstated,“Newgovernmentemployees,notpublicsafetyemployeesbeyondthepublicsafetyrealm,aregoingtohavetocomeonunderadifferentdeal.”149Whatshewasdeclaringwasthatinanystatenegotiatedcontractwithpublicsafetyworkersthedefined‐benefitpensionplanwouldbeacceptable,ratherthanthedefined‐contribution(401)kplan.InOctober,inlightofWhitman’sposition,theCaliforniaState‐wideLawEnforcementAssociation,whichrepresentsHighwayPatrolmembers,firefighters,andotherpublicsafetyworkers,endorsedhercandidacy.Whitmanclaimsshehadmadeherinitialstatementbecause“they[publicsafetyworkers]filldangerousjobs.”150CSLEAPresidentAlanBarcelona,explainedhisassociationsendorsement,

Herearlyembraceoftheanti‐public‐employeerhetoricandproposalfor401(k)sasapanaceaforailsthestate’sretirementobligationsconcernedusdeeply.Butherfamoustalentforbeingaquickstudyhastemperedthattowhereshenowunderstandsthatpublicemployeesarenotonelumpenmass,butsome,likeourmembers,pinonbadges,putoutfires,answer911calls,andinvestigateandinspecttheworstcrimes.SheinformedtheCSLEABoardthatshenowseesthevalueinkeepingdefined‐benefitsretirementforpublicemploy‐ees.151

TheCSLEAspentover$500,000insupportofWhitman.TheBrowncampaignformallyrespondedtoWhitman’sshiftbystating,“It’sapoliticalploytopandertolawenforcement.MegWhitman,fromthebeginningofthiscampaign,haswalkedintotoeverygroupandtoldthemexactlywhattheywantedtohear,nomatterwhichofherpreviousstatementsitconflictedwith.”152However,thesituationtookoncrisispurportwhenatapedprivatephonemessagefromtheBrowncampwasreleased,whereWhitemanwascalled“awhore,”forhercapitulationtotheCSLEA.TheWhitmancamptriedtousethetapeagainstBrown,whileBrownapologizedandattemptedtomoveon.Nonetheless,Whitman’sactionshowedthatpoliticalopportunismcouldstilltrumpideologicalpuritywithaRepublicanpolitical

148Ibid.149Amongseveralsee:RyanGabrielson,“PublicSafetypensionshortfallsvexcandidates,taxpayers,”CaliforniaWatch(September21,2010).InternetSource.150PoliticCal,“Whitmansayspension‐reformplansdon’tapplytopolice,firefighters,”TheLosAngelesTimes(September15,2010).InternetSource.151Ibid.152Ibid.

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candidate.153

Democratic‐nomineeJerryBrown,whowasGovernorbetween1974and1982andwasconcludingfouryearsasAttorneyGeneral,alsoproposedchangestopublicworkerpensions.154TheoutlineofhisproposalwassimilartoSchwarzeneggerandWhitman’s.Theyincludeddemandingthatpublicworkerscontributemoretotheirretirementplans,andraisingtheretirementagefornewpublicworkerhires.Brownalsoproposedendingso‐called“spiking.”MichaelJ.Mishak,writinginTheLosAngelesTimes,reportedthatthebenefitsinBrown’splan,“wouldbebasedontheaverageoftheemployee’slastthreeyearsinsteadofthefinalyear.”155Brownalsoproposedthathewouldestablishanindependentoversightofpensionfunds,requirespecialtrainingforboardmembers,andprohibittheuseofplacementagents—middlemenwhoadvisefundsoninvestmentsandreceivecom‐missionaspayment.Brown’splanalsowouldbarretroactivepaymentsifbenefitsareeverenhancedandbanpension“holidays.”WherehedifferedfromWhitmanwasthathedidnotproposeswitchingnewhirestodefined‐contribution401(k)plans.Healsowouldraisetheretirementageto60,ratherthan65.Brownelaborated,“I’mnotgoingtoblamepublicservantsforproblemsthathavebeencreatedbyWallStreethedgefundsandmortgagesellers,butatthetime,asIdidasgovernor,Iknowwhenit’stimetotightenourbelt.”156Brownalsoproposedhisadministrationwouldpursuethesereformsthroughacombinationoflegislation,regulation,andcollectivebargaining.ReactingtoBrown’sproposals,MarciaFritz,thePresidentoftheCaliforniaFoundationforFiscalResponsibility,stated,“He’srighton.He’sbulletproof.I’mveryhappyhe’sembracingpensionreform.Itremainstobeseenifhecanhandlethepressuretogivethestatusquowhatitwants.”157

DemocratJerryBrownwontheCaliforniagovernor’srace.However,withindaysafterthatelectiontheCaliforniaStateLegislativeAnalysts’officeannouncedthatithadunderestimatedthependingbudgetdeficitby$6billiondollars.Thisestablishedaclimateofurgency,leadingBrowntostressthathisadministration153See:BrianLeubitz,“WhatoftheunionthatbackedthewrongHorse?”CaliforniaProgressReport(November29,2010).InternetSource.Leubitzspeculated,“Ofcourse,the‘whore’episodeonlycomesoutbecause:a)JerryBrowndidn’tproperlyhangupthephone,and,b)CSLEAhandedthetaperecordingovertothemedia.Thishadtobeaverycalculatedandconsideredmove.Youjustdon’tdosomethingthatcreatesthatkindofpersonalattackwithoutconsideringwhatyou’redoing.Inotherwords,CSLEAmovedallinbyreleasingthattape…forthewrongside.”154See:“PensionReform,JerryBrown/Governor/2010,”jerrybrown.org.InternetSource.155MichaelJ.Mishak,“BrowndetailsplanforCaliforniastateworkerpensionreforms,”TheLosAngelesTimes(July23,2010).InternetSource.156Ibid.157Ibid.

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wouldpursueapolicyofpainfulcuts.Inthewakeofthisdevelopment,theServiceEmployeeInternationalUnionLocal1000announcedthatitsmembershiphadratifiedthenewcontract,afteryear‐longnegotiationswiththeSchwarzeneggeradministration.158Thatunionhadbeenwithoutacontractsince2008.Thatagreementmadeconcessions,similartothecontractsagreedtointhepastsixmonths.Thecontractincludedtherank‐and‐fileincreasingmonthlycontributionstothreepercentoftheirsalariesandestablishingatwo‐tieredpensionprogram,wherenewhireswouldbeonadefined‐contribution401(k)plan.Also,theretirementagefornewhireswasmovedupfromage55to60.Thecontractalsoincludedtwelveunpaiddaysoffoverthenextyear.Thelatteragreementwasinexchangeforavoidingstatemandatedfurloughs.Thecontract,whichwilllastuntilJuly1,2013,avoidedbeingsubjectedtoaminimumwageiftherewasadelayinpassingthebudget.Thecontractwasratifiedby66percentofthe95,000duespayingmembers.Thecontractwasadvertisedassavingthestate$400millionannually.SEIULocal1000PresidentYvonneWalker,whoparticipatedinthenegotiations,stated“We’vedoneourparttogetthestatethroughthisunprece‐dentedbudgetcrisis.”159Walkeralsodeclared“Thisgivesourmembersstabilityandsecurity,especiallyafter20monthsoffurloughs.”160Nonetheless,JackCody,writingontheWorldSocialistWebSite,observed,“Thecontract,whichwasapprovedjustoneweekaftertheelections,isanindicationofthetypeofausteritymeasuresthatwillbeimposed—withthecomplicityoftheunions—throughoutthestateandacrosstheUnitedStates.”’161HowsuccessfulGovernorBrownwillbeinaddressingCalifornia’sbudgetdeficitisspeculationatthistime.162Nevertheless,becauseofnational,stateandlocaleconomic,political,andideologicalrealities,California’sstateandlocalbudgetdeficitcriseswillonlypersist,andtheassaulton158TheStateWorker,“SEIULocal1000ContractRatified,”TheSacramentoBee(November9,2010).InternetSource.Alsosee:JonOrtiz,“SEIU,Schwarzeneggeragreetolaborpactwithpensionconcessions,”TheSacramentoBee(October7,2010).159Ibid.160Ibid.161JackCody,“CaliforniaStateWorkersUnionPushesthroughcutsinpayandpensions,”WorldSocialistWebSite(November9,2010).InternetSource.162Amongmanysee:WyattBuchanan,“Brownseeksdrasticcuts,taxextensions,”TheSanFranciscoChronicle(January11,2011).InternetSource.;WyattBuchanan,“Brownseekslong‐termfixes,”TheSanFranciscoChronicle(January12,2011).InternetSource;WyattBuchanan,“Gov.JerryBrown'sbudgetmayhitlegalroadblock,”TheSanFranciscoChronicle(January13,2011).InternetSource.;DanConway,“Californiagovernorbeginstermproposingmassiveausteritybudget,”WorldSocialistWebSite(January13,2011).InternetSource.;DanWalters,“Californiabudgetfixwouldtakethreesteps,”TheSacramentoBee(January13,2011).InternetSource.;DanWalters,Brownputsonbigshowonstatebudget,”TheSanLuisObispoTribune(December9,2010).InternetSource.;“Governor‐electJerryBrownAlreadyTacklingbudget,”About.comSacramento(December18,2010).InternetSource.

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publicworkerpensionswillintensify.

ConclusionTheassaultonpublicworkerunionsandpublicworkerpensionsisintegraltotheresponsebythecapitalistclassineveryWesterncountrytothe2007‐2008financial‐economiccrisis.Theoptionsthisclasshadtoaddressthefinancial‐economiccrisisincluded:1)restructuringtheeconomytoinstitutionalizesustain‐abilityandthegeneralwell‐beingofthesociety;2)nationalizethefinancialsectorforpublicneed,reinstallredistributive‐Keynesianpolicies,andcarryoutmassivegovernmentjobcreation;3)reinstateaprogressivetaxstructure,wherethewealthywouldprovideadequatetaxrevenues;4)promote“stimulus”spendingtojump‐starttherespectiveeconomies;4)implementbailoutstoWallStreetbanksinterjectingliquiditytoinsurebankprofits;and/or,5)carryout“austerity”(budgetcutting)basedonanintensificationofNeo‐Liberalpolicies.Thecapitalistcountriesinitiallypromoted“bailouts”and“stimulus,”butinthepastyearshiftedtoanemphasison“austerity.”ThelatterapproachisbeingcarriedoutbyeveryWesterncapitalistgovernment,aswellasbystateandlocalgovernmentsintheUnitedStates.Theoutlineof“austerity”includes:1)brutalcutsinsocialwelfareandpublictransportation;2)privatizationofpubliceducation;and,3)assaultonpublicworkerunionpensions.Theobjectivehasbeen:1)toforcetheworkingclasstopayforthepublicdebtownedtothebanks;2)tocompletelyprivatizethepublicsectortogenerateprofitsforcorporations;and,3)tosmashorganizedlaborandtoforceworkersintolow‐wageemployment.Sofar,despitethedeepeningintegrationoftheworldcapitalistsystemduringtheAgeofGlobalization(1990‐2008),thecrisishasprovokedeconomicnationalism.ThisistrueinEurope,wherethecrisishasseverelydisruptedthefoundationsoftheEuropeanUnion‐Eurozone.Moreover,theUnitedStateshaspursuedaunilateralprotectionistpolicyrelatedtointer‐nationalmonetaryandtradepolicy.TheUnitedStateshasalsointensifiedglobalmilitaryaggression(Iraq,Afghanistan,Somalia,Yemen,NorthKorea,China,etc.),whichhasamplifiedglobalpoliticalandeconomiccontradictions,creatingaspecterofglobalconflagration.163

163BritishSociologistAnkieHoogveltargues,“UnitedStateshegemonywassupportedbypetro‐backeddollars.Butinthepasttenyearsanincreasingnumberofoilproducingcountrieshavedecidedtoleavethedollarasthecurrencyofdenominationforoilpaymentinfavourofeithertheeuroorabasketofcurrencies.NotablyVenezuela,Iran,andmostrecentlyagroupofGulfArabstates.Iraq’sdecision,in2000,togothesamewayprovoked,accordingtosomeobservers,theUnitedStatesledaninvasionofIraq.Itwouldseem,therefore,asWilliamEngdahlpointsout,thatthereinnothingnowtobackupthisUnitedStatesstatusexceptnakedmilitarypower.Inotherworlds,thedollar’sonlyremainingroleisthatofa‘safehaven’currency.Butthisroleinvitesastrategyofmilitaryposturingandthecreationofpermanentcrisis.”

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Thedominanteconomicinterest’sclasswaragainsttheworkingclasshasassumedspecificformsineachcountryowingtothatnation’spoliticalculture.WhatstandsoutintheUnitedStatesisthebrazenbi‐partisancateringtothewealthy,particu‐larlyWallStreet,andtheattackonthepublicsector.ThisisexhibitedbynumerouspoliciesimplementedbyGeorgeW.BushandBarackObama,includingthemulti‐trilliondollarbailoutstoWallStreet;thecorporatehealthreformboondoggle;theextensionoftheBushtaxcutstothewealthy;andtheloomingthreatstoMedicareandSocialSecurity.Also,whatstandsoutisthecomplicityoftheleadershipoforganizedlabortotheDemocraticParty,whilethatpartyvigorouslycarriesouttheassaultontheworkingclass.Animplicationofthatsymbioticrelationshipisthestunningcomplacencyoftherank‐and‐fileoforganizedlabortotheattacks.ThisisinmarkedcontrasttotheworkingclassandstudentresponsetosimilarassaultsinGreece,France,England,andelsewhere.

Thediscussionabouttheassaultonpublicworkerpensionsprovidesacasestudyastohowthedominanteconomicinterests,thegovernment,andtheDemocraticandRepublicanPartieshaveorganizedtorespondtothe2007‐2008financial‐economiccrisis.Italsoexposesthepredicamenttheworkingclassfindsitselfinthefaceofthisoffensive.Theoptionsfortheworkingclassarestark:eitherrelyoftheDemocraticPartywhilethatpartyintensifiestheimplementationofNeo‐Liberalpolicies,policiesthatwillleadtoeverdeepercrises;or,reviveitsmilitanthistorybyunifyingandformulatingaradicalalternative.Thatalternativemustinclude:1)nationalizingthefinancialsectortoservetheneedsofthesociety,andnotonlythewealthy;2)massiveredistributionofincomethroughpublicinvestment,governmentjobcreation,andaprogressiveincometaxstructure;3)slashthemassivemilitarybudgetwhilegivinguptheillusionofabsoluteglobalhegemony,and,4)resuscitateandpromotepubliclifebasedonsocialjustice,tolerance,diversity,andinternationalcooperation.Moreover,theworkingclassshouldtakeheedtoPoliticalTheoristSamirAmin’swarning:“These‘leftist’economistwerenotpreparedtounderstandthatthecrisiswhichhaseruptedwasinevitable.Theyareevenlesspreparedtoconfrontthechallengeswhicharefacedbythepeopleasaresult.Liketheothervulgareconomists,theywillseektorepairthedamagewithoutunderstandingthatitisnecessarytopursueanotherrouteifthisistobesuccessful—thatisovercomingthefundamentallogicsofcapitalism.Insteadoflookingforexitsfromcapitalismincrisis,theythinktheycansimplyexitthecrisisofcapitalism.”164

January22,2011See:AnkieHoogvelt,“Globalisation,CrisisandthePoliticalEconomyoftheInternationalMonetary(Dis)order,”Globalisations,7(March‐June,2010)12,p.63.Alsosee:WilliamEngdahl,“No,theIranianoilbourseisnotacasusbelli…,”GlobalResearch(March10,2000).InternetSource.164SamirAmin,“ExitingtheCrisisofCapitalismorCapitalisminaCrisis,”Globalisations,7(March‐June,2010)1‐2,p.268.

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