Organized labor, masters of aggressive politics, had its share of triumphs in 2010. With Democrats, their natural ally, the previous year having taken control of the White House and the Senate while increasing their advantage in the House, this was to be expected. AFL-CIO President Richard Trumka and other union officials used their window of opportunity to pressure Congress into passing a health care overhaul mandating unprecedented degrees of government intrusion, and by extension, major opportunities for unionization of the health care labor force. They also secured key presidential appointments.
Would a cut in the corporate tax rates really help create jobs? I debate this question today with David Callahan of Demos. CNBC hosts are Tyler Mathison, Sue Herera and Michelle Caruso-Cabrera. Here's a transcript:
The positive news on GM has been so rampant that many risks factors to share price have been overlooked. It is tough to get unbiased opinions since most analysts work for the GM underwriters and TV networks receive millions of dollars from GM ad revenue. While GM has much good news to discuss, the very obvious risk factor of share dilution to benefit the UAW has not been mentioned.
Here are the facts regarding GM's plans for diluting shares in order to make a $2 billion contribution to the UAW benefits fund in GM Investor Relations' own words:
It looks like the "Chicago Way" will continue with William Daley taking the White House Chief of Staff position formerly held by Rahm Emanuel. Daley is a particularly poor choice because he represents the nexus of big government, big business and the left-wing activist groups they enable and bankroll.
Daley is not a "centrist," nor is he "pro business," except when he is getting a piece of the action. Daley has carried the title of "Midwest Chairman" of JPMorgan Chase but he is not a banker or a businessman. He is a broker of influence. That is why JPMorgan Chase hired him in the first place.
New York City residents finally are digging out of a devastating post-Christmas blizzard, aided by unexpectedly warmer weather. But a growing number are sounding as if they want to use their shovels against union snowplow workers and their supervisors. Various news outlets have reported that leaders of the Service Employees-affiliated Sanitation Officers Association ordered their Teamsters-affiliated work crews to slack off as a protest against recent City Department of Sanitation budget cuts and demotions. The apparent work slowdown not only paralyzed traffic, but also led to two deaths and any number of commuters trapped overnight in subway cars. On the hot seat, Mayor Michael Bloomberg has demanded, and is getting, a full investigation. Union leaders deny culpability, insisting fiscal austerity had reduced manpower. But evidence appears to undercut such claims.
The past few days have seen an approximate 7% rise in General Motors' Stock. Much of this gain is attributed to Wall Street investment banks initiating positive coverage on GM. A further review of the coverage reveals a wide divergence in opinion between big banks that are profiting from the GM IPO and analysts who did not.
Ethics groups are wondering whether the U.S. Department of Justice has become skittish when it comes to investigating members of Congress, after numerous congressional corruption investigations were closed without trial last year, reported the New York Times.
Since the department's case against the late Rep. Ted Stevens (R-AK) notoriously fell apart two years ago, officials have halted at least five other corruption investigations against high-profile congressmen, including Rep. Don Young (R-AK) and Rep. Alan B. Mollohan (D-WV), in photo.
Earlier this month corporate climateers including Nike and 3M were given awards -- supposedly "the equivalent of an Oscar for the climate change mitigation world" -- for their efforts to reduce their carbon emissions. The honors were bestowed by the Carbon War Room, which "harnesses the power of entrepreneurs to implement market-driven solutions to climate change." The Virgin Group's Richard Branson is one of the nonprofit's co-founders.
Patronage and corruption at the U.S. Interior Department's Bureau of Indian Affairs (BIA) is not exactly a well-kept secret. A widespread scam in a BIA loan program in Montana has brought home this reality with full force. And fully six persons have been sentenced as a result. On October 21, one of those persons, Dolly Diane Crowe, a former employee of the credit office at Fort Peck Indian Reservation, was sentenced in U.S. District Court for the District of Montana to two years in prison and three years of probation for theft and conspiracy to obstruct a federal audit. She also will have to make $143,120 in restitution, though the grand total of the scam was much higher. The details of the case underscore the necessity of better oversight at the BIA and indeed call into question why the agency should exist at all.
Rep. Charles Rangel (D-NY) has formally opened a legal defense fund in an apparent acknowledgement of our accusation that he illegally used almost $400,000 in PAC funds for his legal defense. According to a statement Rangel made to Politics Daily:
The repeated filings of allegations, no matter how unsubstantiated, by the National Legal Policy Committee (sic), a politically-motivated right wing group dedicated to eviscerating civil rights and labor union protections, have led me to this action.
On November 29, we filed a Complaint with the Federal Election Commission alleging that Rangel violated the Federal Election Campaign Act by using almost $400,000 in funds from his National Leadership PAC to pay legal bills related to the House Ethics Committee actions against him.