Payback: This Time It's for Real

Labor bosses are emboldened by last month's midterm elections and are looking for a return on their heavy investment in congressional and state races. "The AFL-CIO claims it spent $44 million in the 2006 election. The Service Employees International Union spent $65 million. And this money, which comes primarily from dues, is on top of what's raised by union political action committees, which totaled nearly $200 million for the 2006 elections."

Now it's payback time. And just like the commerical says, "this time, it's for real." AFL-CIO President John Sweeney sees the elections as a "mandate for a union agenda." The president of the UAW has this to say: "Members of our union worked hard during this election. Now we're going to work just as hard to make sure that the change we voted for means a change in direction in our nation's policy."

Today, the New York Times reports, "With the Democratic Congress expected to move quickly to raise the minimum wage, many Democrats, women's organizations and liberal groups are gearing up for a fight on another workplace issue: paid sick days. Supporters point to studies showing that nearly half of American workers do not receive paid sick days. But many Republicans and businesses complain that such legislation would impose another mandate on companies, driving up their costs."

Paid sick days? Labor wants Congress to pass additional employee benefit mandates, what some may consider a free lunch. A Washington Post columnist recently examined General Motor's costly benefits programs and opined, "A free lunch can be the most expensive meal in the world. For living proof, look at General Motors. A big reason that GM has gotten into such trouble is that the pension and health care commitments it made to employees decades ago seemed to be a free lunch."

If legislation is passed requiring employers to offer paid sick days, the greatest harm would be inflicted on our small businesses, which make up 97.7% of all businesses in the Commonwealth. Free Enterprise Watch strongly opposes this burdensome, anti-free market proposal.

Gov. "Bobby Haircut" to Business Leaders: WAKE UP!!

Free Enterprise Watch is committed to being the voice for pro-business allies who are not consistently represented in Virginia public policy debates. At times, the business community is not as good as it should be in mobilizing resources and communicating with elected officials and the public. Maryland Governor Bob Ehrlich agrees with us. A recent interview had this to say about the governor:

Ehrlich is famous for chastising businessmen — his natural constituency — and to their faces. He once accused them of having "Patty Hearst Syndrome," meaning they were soft on their captors and abusers. He says that businessmen like to go with winners, or probable winners, rather than politicians who support their interests (low taxation, light regulation, etc.). And they are miserable organizers.

The governor cites an example: Facing a Democratic legislature — the only kind of legislature Maryland would have — he defeated an increase in the sales tax. So the retail merchants decided to have a thank-you event for him — to which only 100 people showed up. Ehrlich turned to an aide and said, "This is the problem. The teachers' unions can put 10,000 people outside my house overnight, but when we deliver for business . . ." Not that the merchants weren't appreciative, says Ehrlich. It's just that they have work to do — shops to run — and little time for political activism. By contrast, "trial lawyers and other people who feed off government" are in politics virtually full-time — "and that is a political dilemma for anyone who approaches the issues as we do."

Free Enterprise Watch is one resource for business leaders to get their message out. We will mobilize support for policies that create jobs and expand Virginia's prosperous economy.

The Port of Hampton Roads is an Economic Magnet

We have reported on how successful Virginia companies like Micron Technologies drive an economic engine of job creation. Not only do they create jobs and contribute new tax revenue, but they influence other economic sectors in the region.

Virginia Business Magazine shows what effects the Port of Hampton Roads expansion has had on the entire state economy.

"The expansion taking place at the Port of Virginia is the key to industrial development throughout the state," says Rob Starner, executive director for the Industrial Asset Management Council (IAMC), a national group devoted to industrial development and management.

Already the second busiest general cargo port on the East Coast, a new terminal in Portsmouth under construction by APM Terminals Virginia (a subsidiary of the Danish conglomerate A.P. Moller-Maersk) will double cargo capacity in the next few years. Increased traffic from container ships will require support services such as warehouses, distribution centers, transportation hubs and assembly operations.

Combined with a willing workforce, our efficient port system has shipped more than $12 billion in Virginia merchandise overseas. Of the 5,700 Virginia companies that shipped goods internationally in 2004, more than 4,700 were small businesses.

We are strong not only because of our workers and infrastructure, but because of our committment to free enterprise principles. The article continues to say:

Plus, Virginia is the northernmost right-to-work state in the East. "Given the labor problems they've experienced at West Coast ports, this really generates industrial activity here," adds David M. Williams [managing director for commercial and industrial brokerage with Grubb and Ellis/Harrison and Bates].

You can read more about why Right-to-Work is vital to a succesful economy here and here.

Case Study: Regulation Gone Amok

Yesterday, the Washington Post reported that Fairfax County residents cannot donate food prepared in their homes or church kitchens "unless the kitchen is approved by the county." The Post said that this regulatory crackdown was needed to prevent food poisoning.

Under state and county code, food served to the public must be prepared in a kitchen that has been inspected and certified by the county Health Department. Those standards are high: a commercial-grade refrigerator, a three-compartment sink to wash, rinse and sanitize dishes and a separate hand-washing sink, among other requirements.

Health officials said they weren't aware that food from unapproved kitchens was being served in homeless shelters.

"We're dealing with a medically fragile population . . . so they're more susceptible to food-borne illnesses than the general population," said Tom Crow, the county Health Department's director of environmental health. "We're trying to protect those people."

As Ronald Reagan once said, "The ten most dangerous words in the English language are, 'Hi, I'm from the government, and I'm here to help.' "

The public outrage quickly forced Fairfax County officials to respond to the report. "Nobody and no bureaucratic regulation will interfere with Fairfax County's ability to feed and help the homeless this winter," vowed Fairfax County Board of Supervisors Chairman Gerald E. Connolly. "Fairfax County leads the region in a comprehensive approach to ending homelessness, and we won't turn our back on our community now."

Anthony H. Griffin, Fairfax County executive also chimed in: "We want to reassure the public that baked goods such as cookies, cakes, brownies and cupcakes that are prepared at home, as well as packaged or canned foods such as purchased lasagna, may still be donated to the hypothermia centers, and we appreciate this kind assistance from our community."

We congratulate the Fairfax County officials for reassuring the public that holiday donations will not be turned away because they were cooked in grandma's kitchen. Needless, meddlesome and costly regulation should never be permitted to choke economic growth, nor should it be used by bureaucrats to curb charitable giving. This "Cassarole Crackdown" is an egregious example of why some government regulations can be utterly senseless.

To read more about Free Enterprise Watch's commitment to lessening the burden of government regulation on Virginia businesses, click here.

George Will on Jim Webb's Class Warfare Crusade

Free Enterprise Watch has already commented on Jim Webb's Wall Street Journal op-ed piece. George Will also takes issue with Webb's central claims and he ripped apart the senator-elect's sloppy argument about class warfare:

Webb was going out of his way to make waves. A week after the election, he published a column in the Wall Street Journal that began this way:

"The most important -- and unfortunately the least debated -- issue in politics today is our society's steady drift toward a class-based system, the likes of which we have not seen since the 19th century. America's top tier has grown infinitely richer and more removed over the past 25 years. It is not unfair to say that they are literally living in a different country."

Well.

In his novels and his political commentary, Webb has been a writer of genuine distinction, using language with care and precision. But just days after winning an election, he was turning out slapdash prose that would be rejected by a reasonably demanding high school teacher.

Never mind Webb's careless and absurd assertion that the nation's incessantly discussed wealth gap is "the least debated" issue in American politics.

And never mind his use of the word "literally," although even with private schools and a large share of the nation's wealth, the "top tier" -- whatever cohort he intends to denote by that phrase; he is suddenly too inflamed by social injustice to tarry over the task of defining his terms -- does not "literally" live in another country.

And never mind the cavalier historical judgments -- although is he sure that America is less egalitarian today than it was, say, 50 years ago, when only about 7 percent of American adults had college degrees? (Twenty-eight percent do today.) Or 80 years ago, when more than 80 percent of American adults did not have high school diplomas (85 percent have them today), and only about 46 percent owned their own homes, compared with 69 percent today?

But notice, in the second sentence of Webb's column, the word "infinitely." Earth to Webb: Words have meanings that not even senators can alter. And he has been elected to be a senator, not Humpty Dumpty in "Through the Looking Glass." ("When I use a word it means just what I choose it to mean -- neither more nor less.") America's national economic statistics are excellent; Webb could actually tell us how much richer the "top tier" has become, relative to other cohorts, over a particular span. But that would require him to actually say whom he is talking about, and that takes time and effort, and senators -- Webb is a natural -- often are too busy for accuracy.

Based on Webb's behavior before being sworn in, one shudders to think what he will be like after that.

Hear, hear, Mr. Will. We agree that our elected officials should always trust in free people and free enterprise, and it's in poor taste when resorting to "slapdash prose" when making an argument.

Raising Virginia's Minimum Wage?

Tim Kaine has joined Jim Webb and others in calling for an increase in the minimum wage.

The state might raise its own minimum wage if the federal government does not increase the national minimum wage from $5.15 an hour. "If the federal government doesn't, I think there is a role for the state to consider it," Kaine said.

Free Enterprise Watch opposes Virginia raising it's minimum wage above the federal level for several reasons. First, it's bad economics. Last year, only 2.5 percent of all hourly-paid workers in the United States were paid at or below the federal minimum wage. Entry-level workers who begin their careers at the minimum wage typically experience the fastest growth of all hourly-paid workers in the United States were paid at or below the federal minimum wage.

When minimum wage workers receive a statutorily-mandated raise, hourly employees making $7, $8 and $9 will also demand wage increases. This puts significant stress and strain on businesses, particularly small business owners.

Second, if Virginia were to raise the minimum wage above the federal level, it would serve as a disincentive for businesses to grow and stay in the Commonwealth. Some of our neighbors, including West Virginia and Maryland have higher hourly minimum wages than the federal rate.

Free Enterprise Watch believes it is in our shared interest to keep Virginia's minimum wage on an equal footing with the national level as it would sustain our economic advantages in attracting and retaining businesses, which in turn create jobs and grow the economy.

Milton Friedman, R.I.P.

“Underlying most arguments against the free market is a lack of belief in freedom itself.”
--- Milton Friedman

Free Enterprise Watch mourns the passing of one of the intellectual giants of the 20th century, Milton Friedman. As the public face of the “Chicago School” of economics, Mr. Friedman believed government’s role was to stabilize money supply and then get out of the way. He was a tireless supporter of deregulation, low tax burdens and free trade.

The Wall Street Journal has an excellent summary of his life and economic philosophy. See here and here.

Our friends over at National Review said it best: “With [Milton Friedman’s] death on Wednesday, at the age of 94, liberty has lost a great friend and champion.” R.I.P.

Ted Kennedy's Regs Will Hurt Virginia

Today the Richmond Times-Dispatch reports that Senator Kennedy plans to seek federal regulation of tobacco products. Kennedy believes, “Empowering the Food and Drug Administration to regulate tobacco products is long overdue.”

New federal tobacco regulation will hurt Virginia’s strong economy. While semiconductor production recently past cigarettes as the top manufactured export, cigarettes and soybeans remain Virginia’s largest cash crops. Tobacco pumps more than $161 million a year into the Commonwealth and we are the nation’s 4th largest tobacco producing state. Virginia’s tobacco cultivation has helped other industries in the state. For example, the Port of Hampton Roads exports more tobacco and tobacco products than any other port in America.

Government regulations place handcuffs on our market. As Attorney General Bob McDonnell said when announcing Virginia’s Regulatory Reform Commission, “Regulations affect our lives every day. . . . And excessive and burdensome regulation can be seen in increased costs borne by consumers.”

Experts believe that our tobacco production will improve with the growing economy. “[Virginia’s cigarette] exports could rebound as the price of U.S.-grown tobacco drops,” according to Darryl Jayson, vice president of the Tobacco Merchants Association.

However, there is a direct correlation between government regulation and consumer prices. As industry regulation increases, manufacturers bear greater compliance costs and they in turn pass those costs to the customers.

If Ted Kennedy gets his way, Washington bureaucrats will win and Virginians suffer the consequences.

Kaine Insults House of Delegates Members

This video footage is of a recent speech by Tim Kaine introducing House of Delegates Democratic Caucus Chairman Brian Moran to the crowd. Is this what Mr. Kaine means when he speaks of bipartisanship?

Big Labor's Buddy: Jim Webb

Yesterday, Senator-elect Jim Webb said this of his first days in Washington: "I look forward to joining Senator Schumer very soon in voting to increase the minimum wage," he said. Earlier, we have earlier discussed why this is bad policy.

Labor unions spent an unprecedented amount of money in this year's midterm elections. The AFL-CIO alone spent $40 million to influence the election and through grassroots outreach, contacted 13.4 million voters. Along with Tennessee, Virginia was one of the state's in the crosshairs of labor.

Now comes payback time. The labor bosses want an anti-business agenda pushed through the Congress. Jimmy Hoffa - President of the Teamsters - wrote a post-election Op-Ed attacking free trade agreements like NAFTA, calling for an increase in the minimum wage and universal-socialized healthcare.

And how does Virginia's new junior senator respond?: At his victory rally, he said:

"I am indebted to you and I will not forget my loyalties," Webb told a crowd of about 400 cheering supporters in a plaza near Arlington's courthouse.

And just today, Senator-elect Webb heeded Mr. Hoffa's call for protectionism:

In the age of globalization and outsourcing, and with a vast underground labor pool from illegal immigration, the average American worker is seeing a different life and a troubling future.

Free Enterprise Watch's Issue Advocacy Campaign Successful in 50th H.O.D. race!!

Free Enterprise Watch's issue advocacy campaign successfully educated Virginians about business issues and the candidates vying for the 50th House of Delegates seat. Jackson Miller and Jeanette Rishell held vastly different positions on the merits of our free market system and the best ways to preserve our economic prosperity. FEW's educational literature and candidate survey informed citizens of Manassas, Prince William and Manassas Park about how their candidates would represent them in Richmond. We would like to thank Jackson Miller for his commitment to our shared principles and congratulate him on a successful campaign. Ms. Rishell's troubling comments to Virginia FREE concerned members of the business community, and our efforts helped bring her positions to light.

Free Enterprise Watch is the advocate and the voice for Virginia businessmen and women who want to meet the challenges of our dynamic global economy. We will work with those who support pro-business policies and fight to keep Virginia the number one place in America to do business.