Detroit has filed for bankruptcy. Most of the spot-news coverage has focused on the immediate fiscal crisis of the city, but the immediate fiscal crisis really isn’t what got the city into such deep trouble. Certainly, Detroit’s contracts with its employees and its debts to its retirees don’t really explain anything about how and why this once-great city has come to such grief. Those contracts and retirement benefits are par for the course for major American cities—certainly, no more generous than those in cities of comparable size.
Any remotely accurate autopsy of the city will find that the cancer that killed Detroit was the decline of the American auto industry.
The United States Senate and the nation it so imperfectly represents both had a good day today, thanks to something that’s been in short order around here lately: A Democrat who knows how to play hardball.
The first test vote that Senate Majority Leader Harry Reid is scheduled to bring before the Senate this morning is that of Richard Cordray, President Obama’s pick to head the Consumer Financial Protection Bureau. Reid decided to lead off with Cordray for a very good reason: The Republicans’ insistence on filibustering him makes clear their real intent is to throttle the Bureau. They are using a filibuster of an appointment to effectively repeal legislation they don’t otherwise have the votes to repeal. Nothing could better make Reid’s case that the filibuster has been twisted into a vehicle for minority rule.
Gallup and Pew concur: Just over one-half of Americans approve of labor unions.
In late June, the Pew Research Center released the results of its biennial poll on unions and corporations, and reported that 51 percent of Americans had a favorable view of unions—up from just 41 percent in 2011, the last time Pew popped the question. Pew’s new number is almost identical to Gallup’s, which found that 52 percent of Americans approved of unions when it last asked that question in August of 2012. Gallup polls on union approval every year and has reported a 52 percent approval rating each of the past three years. Before then, union approval had hit an all-time low for Gallup surveys, with just 48 percent in 2009.
The Obama Administration’s decision to delay for a year the penalty that employers (in firms of 50 or more employees) must pay if they don’t provide health insurance to their workers shines a light on a problem that may be even more profound than getting health coverage for every American: that is, the decline of the American job.
The employer mandate was designed for an economy in which American workers were employed in what had been normal jobs. In firms of 50 or more, all workers who put in at least 30 hours a week were either to receive coverage from the firm or else the firm would have to pay the government a $2,000 yearly penalty.