During the roundtable segment on ABC’s This Week on November 23rd, the discussion turned to economic stimulus and what action the federal government needs to take to turn things around. Conservative New York Times columnist David Brooks insisted that investing in infrastructure would take too long to get off the ground and would not produce short-term results.

Robert Kuttner, co-founder of The American Prospect and author of the book “Obama’s Challenge,” disagreed. Kuttner argued that while it may take some time before new jobs are added to our economy, it would take much less time than Brooks claimed – and, more importantly, the government can act right now to protect existing jobs by sending relief to state and local governments:

“Right now, state and local governments are laying off people, they’re deferring projects, they’re cutting health and education. If the government cuts a check to state and local governments to the tune of $100-150 billion dollars, not one of those layoffs have to occur.”

Brooks agreed.

“We can agree on state aid, I do agree on that. The things we know work: state aid works, food stamps works, extending unemployment – which they’ve done – that works. That clearly works to stimulate the economy.”

Watch the clip:

By now you have doubtless heard the media pundits rail against the alleged “exorbitant” wages of unionized autoworkers. Nothing like creating a straw man out of workers to push through an anti-union agenda and deny automakers financial aid that could make or break the industry.

After all, one out of 10 American jobs depends on the auto industry. According to a study by the Center for Automotive Research, if all three U.S. automakers were to cease operations, the economy would lose almost 3 million direct and indirect jobs in the first year, not to mention at least $156.4 billion in taxes within the first three years.

And yet, there are those who’d rather ignore the facts. Take, for example, New York Times financial columnist Andrew Ross Sorkin’s column on November 17, in which he falsely asserts that the average General Motors worker is “paid $70 an hour, including health care and pension costs.”

This argument has been repeated by numerous other commentators and it could actually be a demolishing blow to the U.S. auto industry… if it was true. But it’s not.

As Eric Boehlert at Media Matters points out:

Somebody at the Times needs to clarify the record, because the average United Auto Workers member is not paid $80 an hour. Or even $70. Not even close. Yet (thanks to the Times?) the issue has become a central talking point in the unfolding national debate about the future of America’s automotive industry.

But where does the bogus $70 an hour for “high-on-the-hog” autoworkers come from? Finance commentator Felix Salmon at Portfolio explains:

“The average GM assembly-line worker makes about $28 per hour in wages, and I can assure you that GM is not paying $42 an hour in health insurance and pension plan contributions. Rather, the $70 per hour figure (or $73 an hour, or whatever) is a ridiculous number obtained by adding up GM’s total labor, health, and pension costs, and then dividing by the total number of hours worked. In other words, it includes all the healthcare and retirement costs of retired workers.”

That’s right. Contrary to the claim by the anti-union media blaming autoworkers for the current industry crisis, “$70 an hour” doesn’t even resemble what its average worker makes or takes home.

Bear this in mind next time you find one of these “commentators” not letting the truth get in the way of their anti-union bias.

This entry by AFSCME President Gerald McEntee was originally posted on The Huffington Post.

President-elect Barack Obama holds an unprecedented meeting tomorrow with the nation’s governors at Independence Hall in Philadelphia. He has called the meeting to discuss the impact of the ailing economy on state budgets and to outline key steps that need to be taken to revive the nation’s economy. This gathering provides a historic opportunity for the nation’s governors to highlight the monumental crisis that they face as America’s economy spirals downward.

This first-of-its-kind event comes less than a week after President-elect Obama stressed the need to create jobs and stimulate the economy by urging fast-tracking for improvements in roads, bridges and other infrastructure investments. He has indicated that he would work closely with the nation’s governors and mayors to identify necessary projects “based on national priorities and not based on politics.”

Infrastructure projects are important. States also must have additional federal resources to provide the vital health care and family services their citizens need, especially in difficult economic times. Governors across the country are making this case, and many of the nation’s leading columnists recognize it as well. Vermont Governor Jim Douglas, who serves as vice chair of the National Governors Association, notes the need for additional Medicaid funding: “The slowing economy is resulting in growing unemployment, increased demand for state services and significant declines in state revenues. As governors work to reduce budget shortfalls and plan for the coming fiscal year, we need to be partners in an economic recovery strategy that includes additional funding for Medicaid and investments in infrastructure.”

As local and state government budgets are squeezed, the services they provide become harder to provide, including health care and unemployment programs that give families some needed security during this economic downturn. At a time when families can most use the services and programs that state governments provide, states are least able to meet their responsibilities.

At least 20 states are cutting vital public services that will impact low-income children’s or families’ eligibility for health insurance or reduce their access to health care services. In Rhode Island, for example, health coverage for 1,000 low-income parents has been eliminated. New Jersey has cut funds for charity care in hospitals. In Florida, Georgia and South Carolina, among other states, funding for K-12 and early education are being sliced drastically.

Cuts like those make life more difficult for families who rely on these programs. That is why 375 prominent economists - including Nobel Prize winners Joseph Stiglitz, Robert Solow and George Akerlof - wrote to Congress last month calling for immediate assistance to state and local governments as part of a comprehensive economic recovery package. They recognize that aid to state and local governments will prevent dramatic cutbacks in the public services that are so vital to our communities.

Extending unemployment insurance and expanding food stamps have to be a part of that aid. As Mark Zandi, chief economist and co-founder of Moody’s Economy.com notes: “Extending unemployment insurance and expanding food stamps are the most effective ways to prime the economy’s pump. A $1 increase in UI benefits generates an estimated $1.64 in near-term GDP; increasing food stamp payments by $1 boosts GDP by $1.73. People who receive these benefits are very hard-pressed and will spend any financial aid they receive within a few weeks. These programs are also already operating, and a benefit increase can be quickly delivered to recipients. The benefit of extending unemployment insurance goes beyond simply providing financial aid for the jobless, to more broadly shoring up household confidence.”

President-elect Obama’s decision to meet with the nation’s governors is a clear sign that the change he promised in his campaign has already arrived. In contrast to the Bush administration that told state governments “you’re on your own” for the last eight years, the new administration is saying “we’re in this together.” America’s governors have an opportunity tomorrow to urge the new administration to do all it can to help states regain their role as a force for creating opportunity and prosperity, supporting and protecting our families, and strengthening our communities.

The governors must make it clear that they face unique and tough challenges during this economic crisis and that the work they do makes our communities better places to live, work and raise a family. They need to make the case that assistance to state and local governments must be a cornerstone of the economic recovery package that Congress and the new administration will address in the coming weeks.

American Rights at Work just released two new fact sheets to showcase more failures of our current labor law system in protecting workers. The first, “The Inadequate Costs of Labor Law Violations,” exposes the inadequate penalties employers face for violating the National Labor Relations Act — particularly in comparison with the penalties that employers face for breaking other types of employment law.

The second, “The Haves and the Have Nots: How American Labor Law Denies a Quarter of the Workforce Collective Bargaining Rights,” exposes how outdated labor law system denies millions of Americans the opportunity to join unions and thus bargain collectively with their employers. Appallingly, 33.5 million, or 23.8% of the civilian workforce, have no collective bargaining rights under the NLRA or other labor law.

As the national economy continues to spin downward, the need for Congress to take bold action in providing support for state and local governments continues to build. This week, 375 of the nation’s leading economists – including Nobel Laureates Joseph Stiglitz, Robert Solow, and George Akerlof – called on Congress to quickly put $300 to $400 billion into the economy or risk even worse unemployment and a deeper recession.

According to a letter sent by the economists to Congressional leaders:

“The latest data clearly show that the economy is entering a serious recession, initiated by the collapse of homebuilding and intensified by the paralysis of credit markets. Without a fast and effective response by government, the economy could continue to spiral downward, leading to a large increase in unemployment and a sharp decline in GDP.”

Stiglitz and his fellow economists reject the notion that providing help to the unemployed and to states and localities whose budgets are being squeezed would raise interest rates and deter private investment. “It is far more likely that an effective stimulus package will promote investment,” they told Congress, “by improving prospects for higher sales and profits.

Download the entire letter in support of immediate, bold federal assistance (40k PDF).

This entry by AFSCME President Gerald McEntee was originally posted on The Huffington Post.

Right-wing critics of public employee pensions will use any angle to convince folks that these plans are bankrupting states, cities and towns. In the Wall Street Journal this week, Steve Malanga blames pension plans for today’s economic difficulties and in the same piece urges governments to sell off their assets.

Malanga fails to mention that most public pension plans are in good financial condition and does not note that states built up rainy-day funds and cut taxes during this time. It’s a fact that most of us are required to contribute to our plans regularly, and our contributions, along with our employer’s, are invested to earn additional income. While the economic downturn has caused some dips in funds, estimates of the ratio of pension assets-to-liabilities for state pension plans indicate that they are in good shape. Most plans have diversified their investments so the impact of today’s market losses is softened. Over the last twenty years, most pension funds have had a good rate of return, even during downturns, because they keep fees low and use professionals to routinely beat market benchmarks.

Pension funds, with assets from employers and employees, are an essential part of this nation’s capital market, particularly at a time of economic crisis such as the one we are currently facing. Public employees have sacrificed pay increases and made contributions in order to ensure that their pension plans are adequately funded. And governments have also been prudent about building up their reserves — as of July 2007, state rainy day funds stood at 10% of total budgets, which would have been sufficient to deal with a moderate cyclical recession. Of course, what we’re seeing is far worse.

The truth is that in these times of real budget challenges, pensions make good economic sense. Pensions put money into the economy, offer real retirement security to workers, and allow government employers to recruit and retain a quality workforce to make the vital public services that America relies on happen. The investments made by pension funds have helped make America work and can help turn our economy around in the days and months ahead.

Most Americans recognize that today’s government challenges are the result of an economic downturn rivaling that of the Great Depression and a Bush Administration that willfully ignored the economic problems. Malanga himself acknowledges several times in the piece that “rapidly declining tax collections” are the cause of the states’ budget problems. Yet this fact is ignored in the diagnosis and prescription of the fiscal crisis we are in.

Malanga also argues for privatization of roads and other public goods. The solution is not privatization, which all too often means that the public pays more and gets lower quality services while public workers are laid off and corruption scandals make the news. Americans need quality public services and efficient governments that help achieve real progress for communities. While some view selling public assets like toll roads to private firms as a panacea for infrastructure investment, the public is fiercely — and rightly — opposed to selling our roads for the pursuit of private profit.

Public pensions are providing benefits for the economy, retirement security and taxpayers. As states find their budgets under pressure, it is important that states put in place procedures and practices that will mitigate against rosy projections regarding investment income and provide a means to pay for the benefits their employees have earned.

While improvements can always be made, pensions are not the problem. The economy is the problem, and the President and Congress need to take real steps to revitalize the economy and help the American people.

This entry by AFSCME President Gerald McEntee was originally posted on The Huffington Post.

The election of Barack Obama and a new Congress demonstrated that the American people are hungry for real change. The vast majority want policies that are neither left nor right. Instead they want change that moves the country forward and solves the problems they face every day. The American people spoke loudly and clearly on Election Day: They want a government that’s innovative and effective.

In response to the Bush administration that has told Americans “you’re on your own” for the last eight years, voters said “No we’re not, we’re in this together and it’s time for a change.” Americans are demanding that government be a force for creating opportunity and prosperity, supporting and protecting our families, and strengthening our communities. That’s how we will come together to improve the communities where we live, work and raise our families. Government helps us to achieve those things we can’t do alone.

On November 4, voters demanded a government that says “Yes We Can.”

Nowhere is that more apparent or important, than in the urgent need to guarantee quality, affordable health care every one can count on. Health care reform is a vital part of rebuilding the economy and expanding America’s middle class. We have to do it now - precisely because economic times are so tough.

The Health Care for America Now! campaign has begun airing a television advertisement featuring President-elect Barack Obama’s speech last month when he said: “The question isn’t how we can afford to focus on health care - but how we can afford not to. Because in order to fix our economic crisis, and rebuild our middle class, we need to fix our health care system, too.”

He could not be more right. And it’s this boldness in his thinking that won him the confidence of the American people.

Health care costs are a huge economic issue and one of the top concerns of American families. As I talk to workers across the country, everyone is feeling the pinch. Health insurance premiums are going up three times faster than pay, with many working families shouldering a growing share of those costs. They are paying more and getting less - while being forced to fight with insurance companies to get the care they need and get their bills paid.

A new study demonstrates conclusively that health care reform and jumpstarting the economy go hand in hand. It shows that in 2007 our economy lost as much as $207 billion because of the ill effects of poor health and shortened life spans caused by lack of insurance, not to mention the pain felt by those directly impacted.

This is only going to get worse unless we do something now. The study also finds that without changes, the cost of a family’s health insurance will rise so much that by 2016 half of American families “would need to spend more than 45 percent of their income in order to secure health insurance for themselves and their families.” We must reform our health care system now to assist working families, to fix the economy, to address the squeeze on state and local government budgets, and to help American businesses struggling to compete while paying for health care benefits for their employees.

Our health care system is broken and it’s hurting everyone. We need a system that guarantees quality, affordable health care for all. Responsible businesses are willing to pay their fair share toward employee health care, and Americans recognize that government must be an advocate to keep costs low and quality high. As our economy goes through the worst crisis since the Great Depression, the need for reforming our health care system is more important than ever.

Gov. Gregoire with a WFSE supporter.

In addition to celebrating Gov. Chris Gregoire’s re-election victory, the Washington Federation of State Employees (WFSE)/AFSCME Council 28 has something else to cheer about: the WFSE Political Blog was singled out by the Democratic Governors Association website for its excellent roundup of endorsements in the state’s gubernatorial match-up.

Council 28 also regularly updates their Federation Hotline blog with news affecting WFSE members, maintains a photo collection on Flickr and posts online videos to their channel on YouTube.

American Rights at Work has launched a new television ad promoting the Employee Free Choice Act just in time to greet members of Congress returning to D.C. after a hard-fought campaign season.

Voters made it clear they want action taken to strengthen the middle class, and the Employee Free Choice Act is a critical part of the economic recovery we need. By restoring the freedom to form unions, this bill will help America’s workers get better health care, job security, and benefits.

Over 60 percent of the public as well as a majority of the incoming Congress support the measure, and it was cosponsored by both President-elect Obama and Vice President-elect Biden. Talking Points Memo reports that the ad, part of a broad effort to gain support for the Employee Free Choice Act and get it passed, started airing on Sunday and will run nationally on CNN, MSNBC and CNN Headline for three weeks.

Visit FreeChoiceAct.org/AFSCME for more information on the Employee Free Choice Act and to join the fight to pass this important piece of legislation.

The Bush Administration has just issued new rules for the Family and Medical Leave Act (FMLA) which are designed to make it harder for workers to use leave when they need to take care of themselves or family members.

AFL-CIO President John Sweeney issued the following statement on these new regulations:

Today’s eleventh-hour move by the Bush Administration to weaken the Family and Medical Leave Act (FMLA) is another slap in the face to working families who are struggling just to get by in the midst of an unprecedented economic crisis. It’s reprehensible – but all too predictable – that the Bush Administration would use its final days in office to give business interests one more gift by placing more hurdles in front of workers who need to care for their families.

Since the FMLA’s inception in 1993, workers have taken the leave they needed more than 100 million times, making it one of the most successful pro-worker laws in history. While the regulations implementing the new FMLA provisions on military family leave are largely viewed as a positive step, the Administration could have been more generous, and there is still work to be done to make sure that military families get the help they need. The other revisions would generally restrict workers’ ability to access paid leave without putting their jobs at risk.

Given the worsening economic situation facing families, we should be talking about how to expand successful laws like the FMLA to provide workers more job security and flexibility to deal with urgent family situations, not less.

Read more at the AFL-CIO Now blog.