Paul Soglin: Waxing America

Our Public Market and Economic Opportunity: Capitalism in Madison

This weekend Ann Althouse mocked -she is good at that- the Madison Public Market:

Either they got more and more interested or they became conscious of the need to look interested. I would expect people, here in Madison, Wisconsin, to be aware of the importance of not looking bored or uncaring when someone comes at you with talk of "inclusiveness" and the "com[ing] together" of "cultures and ethnicities.

There is good reason why the analysis of the Public Market includes a focus on diversity, inclusiveness, and equity.

Here are some of the inputs in the analysis:

• As is usually the case following difficult economic periods, the recovery after the Great Recession was pretty good for middle and upper income households including most professionals. It was bad, and is still challenging, for low income families and individuals.
• The kind of entry-level jobs that used to provide parents opportunities to raise middle class bound children are quickly disappearing:
  
  • Full-time retail positions with advancement and career opportunities are replaced with part-time jobs with no benefits.
  • Entry-level positions in state government and at the University of Wisconsin are disappearing.
•  Wisconsin is dead last in entrepreneurship among the fifty states.                        
•  Madison is the major exception in the Badger State in creating new small businesses.
•  Entrepreneurship as an essential element of our economy is new to Madison because of our historic reliance on the University of Wisconsin and the Wisconsin State government as a job creator.
•  For low-income people of all colors and races, entrepreneurship is one of the few opportunities for accumulating wealth without a college degree.
• The food industry is a robust sector for new businesses; over one-third of all new businesses in the US are founded by immigrants.

There are dozens pf public markets in the United States and they are as varied as their cities. The French Market in Chicago is expensive. It serves mostly highly processed foods to tourists and business people out for lunch.

Pike's Place Market in Seattle still provides a variety of fresh seafood to the locals, but it is expensive and losing its charm as it is now a major tourist destination. One only hopes it does not go the way of San Francisco's Fisherman's Wharf.

The Reading Market in Philadelphia is in a class of its own. Its variety of foods, fresh and processed, and its history are unique, as is its relationship to the rail terminal.  When Madison was to have a rail connection to Milwaukee in the pre-Walker era, locating Madison's Public Market in direct proximity to the Madison terminal made sense.

In Minneapolis and York, Pennsylvania, are three different markets for Madison to emulate. The Mercado is Mexican and the Global Market is what its name implies. In York, the market vendors are almost all white, reflecting the population of the community. All three markets, particularity the Mercado and York, are in unassuming buildings, their focus is serving real people, not elites and cosmopolitans.

If Althouse can look beyond her own exclusive world, one reeking in privilege, perhaps she will escape the shackles of her rigid assumption that everything in Madison is crafted by liberals, reeking in socialism. At times these plans are crafted by liberals reeking in capitalism.

       

Trump Joke of the Week: President-elect is Toothless Cat

Everyone from Bernie Sanders to Politico is on to the Trump tax cut gambit.

Candidate Trump threatened Carrier with tariffs if it moved jobs out of the United States.  Now Carrier will keep most of the jobs in Indiana after President-elect Trump, declawed and de-fanged, wheeled and dealed with Carrier and gave them major tax breaks to stay put.

Tax cuts to companies, income and property (this does not include TIF, secured by job guarantees and/or building improvements), are not justified: Kauffman Foundation, Three Tax Topics.

The scary part of all of this is the direction towards corporate socialism in the name of building the economy.

Paul Ryan for President

On election night 1994, I was sitting in the bar at the Inn on the Park with buddy Ron Domini watching the election returns. The networks reported that young George W. Bush upset Ann Richards in the Texas gubernatorial race. I turned to Ron, and said, "We have to defeat these guys now. They take an election like this and then next thing you know they are a viable candidate for President."

When Paul Ryan slipped in to Congress though Wisconsin's First Congressional District, the writing was on the wall. Since the Democrats success in 2008, Ryan carefully positioned himself as a viable candidate for 2012, if not 2016.

Now comes the Wisconsin Public Research Institute Revenge of the Nerd: Why Paul Ryan Could be Our Next President handicapping a Ryan presidential bid.

Actually it is not much different that what we have said here at Waxing America:

• Paul Ryan - Wisconsin's Stand Up Comic  -  Ryan is a johnny-come-lately to health care and a tool of the worst elements fo the heath insurance lobby.
• Paul Ryan: When Will You Look At the Facts About the Deficit?  Ryan makes exaggerated and false statements about the budget and the deficit.
• Wisconsin Representative Paul Ryan: Medicare Assassin - he wants to destroy Medicare just as he intends to put Social Security in the hands of the private sector so his buddies can make outrageous transactional fees off the public.  Also: Paul Ryan: Alarmist or Fraud, or Both?
• Paul Ryan of Janesville is no Sarah Palin -It is that very private system he is defending that accounts for the expansive cost of American health care.

The difference between Ryan and the younger Bush is not their policies, but that Ryan is not as inept. Which is what makes him so dangerous.

 

ed note: this post originally appeared February 3, 2010

Slob, Overpaid, Fat Pension, Free Health Care, Public Employees: Debunk This

The Economic Policy Institute besides being one of my favorite sources for information is a pro-labor, union funded organization that gets it right. Can anyone debunk this:

Debunking the Myth of the Over compensated Public Employee

  ...The data analysis in this paper, however, indicate that

 public employees, both state and local government, are

not overpaid. Comparisons controlling for education,

experience, hours of work, organizational size, gender, race,

ethnicity and disability, reveal no significant overpayment

but a slight undercompensation of public employees

when compared to private employee compensation costs

on a per hour basis. On average, full-time state and

local employees are undercompensated by 3.7%, in comparison

to otherwise similar private-sector workers. The

public employee compensation penalty is smaller for

local government employees (1.8%) than state government

workers (7.6%)....

.

Madison Then and Now: 1960's and the Walker Protests

No, I never saw in the 1960's what is occuring today in this effort to stop Governor Walker's union busting.

From the Milwaukee Journal Sentinel:   

Soglin: "I've never seen anything like this"

Soglin said he has participated in the protests against Walker’s budget repair bill for a week, starting with a march Saturday from Memorial Union on the UW-Madison campus. The crowds have built every day, and on Thursday and Friday exceeded 20,000, he estimated.

He compared the mood of the crowds to those he saw during the civil rights movement in the 1960s. There’s anger, he said, but there was also “elements of joy and enthusiasm, and that’s what’s going on here as well.”

The anti-war movement, he said, was “all energized and angry - because it was focused on stopping a war. It could not have the almost spiritual nature of what’s going on in Madison today.”

Spiritual? Joy? Soglin said the teachers and other public employees from across the state are finding a bond with each other.

“There are a lot of people who are scared about the economic consequences of what’s going to happen” with Walker’s bill, he said. “But they’re also getting strength from all of the people they are meeting.”

Soglin Marches With Madison's Public Employee Unions Against Scott Walker

Late Thursday afternoon, led by bagpipers, many of Madison's off-duty firefighters marched in dress uniform from the City-County Building to the Capitol Square, then into the Capitol via the northeast entrance and all the way through to the southeast entrance. Judging from the gold stripes on sleeves, most of the officers and chiefs were there as well. They were followed by a large contingent from other Madison city unions, and then were joined along the way by many MTI members.

Paul Soglin was standing with several supporters at the head of Martin Luther King Jr. Blvd when the parade swung right onto East Main Street. We were all applauding, as was the large crowd on both sides of East Main. As the fire brass made the turn, a senior officer broke ranks to embrace Paul.  Seconds later, several more officers grabbed Paul with shouts of "join us!"  Seconds later, Paul was marching in the firefighters' midst with his flier-laden supporters scrambling to keep up on the fringe.

Here's a video with the firefighters' viewpoint.  Paul appears at about 1:14 into it.

 

The applause and crowd support that accompanied the march around the Square was buoying enough, but the roar that rose in the Capitol Rotunda when the firefighters entered seemed to shake the whole building.

Here's some video of the parade's entry into the Capitol from Channel 3000:

 

It was also energizing to see how many of the firefighters, teachers, and other union members made an effort to approach Paul, shake his hand, and thank him for running. Paul's typical response was to thank them for their work and for supporting each other.

Watching all the kids at the Capitol, many with their parents, and all the teachers, and all the union folks, and all the UW students, I can't help but think that Scott Walker has no idea yet what his overreaching has generated. Walker may ram this union-busting bill through, but the reaction will come in November 2012. Walker has been pushing the political pendulum as far and as fast as it will go, but pendulums always swing back the other way, and the further and faster one is pushed, the further and faster it swings back.

- Barry Orton

 Editor's Note: Campaign contributions can be made out to Soglin for Mayor and mailed to PO Box 1228, Madison WI 53701. Please include contact information and whether we can use your name as a supporter.  Let us know if you can volunteer or sponsor a fundraiser. State law requires you to supply employer information (name and address) if your contribution is over $100 in a calendar year. The campaign website at http://www.soglinformayor.com is able to take online contributions, but please feel free to go old school via the US Postal Service.

Governor Walker Launches New Political Movement

Wisconsin Governor Scott Walker's attempt to crush public employee unions has changed both Wisconsin and the nation. While we do not know the outcome of Wisconsin Senate Bill 11, Walker's effort to end collective bargaining for public employees has triggered a response that is overwhelming and will be lasting.

Walker, elected last November on an anti-labor platform, never publicly disclosed that he planned to crush our unions with legislation that was scheduled to be adopted only six days after its announcement.

Know that hundreds of thousands of Wisconsin residents, both union and non-union folks, have said, "Kill the bill."

Here at the Capitol, dozens of people asked me today if I ever saw anything like this in the 1960's. 

No.

This is different.

The civil rights movement was joyful and enthusiastic.

The anti-war movement was energetic and angry.

Neither combined the dynamics we see here in Madison this week.

The rotation of people from throughout the state, coming in each day, is one of the reasons we are so vibrant.

The other factor is the young people. I have never seen anything like the energy from people under 30. It's both inspiring and energizing. 

We have much to do; more education, more planning, and the work to keep our elected officals from hijacking this grassroots movement.

Because this movement has legs.

 

 

Madison Common Council Given Snow Job on Bicycles

No-bid government contracts always call for close examination.

And upon close examination, Madison’s recent no-bid deal on a bike share program just doesn’t make sense. One reasonable expectation is that no-bid contracts should only be allowed when there is a single source for the item to be purchased.

That’s what the Mayor’s office told the City Council about the bicycle deal, which was rushed through the approval process, taking funds from the contingent reserve fund, which is generally for emergencies.

First, the Council was told there was only a single source for this kind of bicycle rental.  When it was demonstrated that there are actually multiple suppliers, the Council was told that the recommended vendor was the only one with a GPS system that could locate the bicycles, should they be abandoned.

 But wait: Here’s an article from Crain’s New York business:

Queens bike maker seeks big leg up.

“The DOT is accepting bids until Feb. 16 for the bike program, which would involve setting up more than 600 bike stations around the city, equipped with high-tech locks, and more than 10,000 GPS-equipped bikes. The request for proposals dictates that a private company will bear all costs of the program, slated for a 2012 launch, and share any profits with the city.”

So in New York they are going to bid, the private company will bear all of the costs of the program, and share the profits with the city.

Oops.

 

Bike Share Deal Controversy: Questions and Answers From The Candidates

 Today Brenda Konkel asked both mayoral candidates some pointed questions about the Trek-run "B-Cycle, LLC" bike share program:

Sure, its cool but . . . is it a good idea to make a sole source deal with Trek to provide bike kiosks for the City of Madison at a cost of $300,000 ($100,000 from this year’s contingent reserve) to the taxpayer in this current economy? Should there have been an RFP, why or why not? Is it appropriate to use money from the contingent reserve?

Paul Soglin's answer:

First some perspective:
Bicycle sharing systems are not new to Madison. After the first modern effort was introduced in the Netherlands in the late 1960’s, Wisconsin’s capital city, as did Paris, followed suit with the yellow bicycle program. This effort of fixing up old bikes and painting them an identifiable color was repeated with the red bicycles found on Madison’s streets in the 1990’s.

Since then, a number of more effective programs were introduced in Europe and subsequently the United States.

The fact is, this idea has merit and represents a sensible step forward compared to the earlier bicycle sharing models: The bicycles will be new and well maintained. While not free, the rentals are reasonable and convenient, available to both Madison residents and visitors.

The problem with this is not the idea of bike sharing. Rather, the problem with the Cieslewicz proposal is that it plays fast and loose with a number of reasonable and long-standing checks and balances; it circumvents established budgetary and fiscal practices; and it presents challenges in terms of other values Madisonians hold dear.

We are told that this proposal must be adopted within four weeks of introduction. There will be no bidding on the contract. The funds will come from the contingency reserve fund. There may also be advertising that will violate the Madison sign ordinance and commercial use of the public parks.

Here’s what should happen:
The proposal should be properly referred to City committees. That will allow for discussion of a number of critical issues and the opportunity to get critical questions answered:

- The contingent reserve fund is for emergencies –overtime for police and fire and snow removal. Why is this an emergency?
- If the cost of the project is $100,000 for each of three years why shouldn’t the project stand on its own merits and go through the budget process?
- Why wasn’t this proposal put out to bid? Given the number of bicycle sharing programs in the United States and Europe, this is not a single source item. There is absolutely no justification for ignoring the RFP and bidding process simply because this is a last minute proposal.
- Why should the city pay for the program? If a private company is going to use public property to store and lease the bicycles, it seems that they should be paying the city, not the other way around.
- If it is true that the company managing the program is going to rent the space they have on public property, including the parks to advertisers, then we need a public discussion about how extensively we will allow advertising on public property, especially if it violates the billboard ordinance.

Every progressive city maintains high ethical standards. We need to discuss the payment of the mayor’s recent trip to Europe by a bicycle industry group particularly now that a member of that group is getting this no bid-contract. We should not have different standards for green industries as opposed to other industries seeking to do business with Madison.

Dave Cieslewicz' answer:

The B-Cycle bike sharing program is an incredible opportunity for Madison. Bike sharing is a hallmark of a world class city – one where companies want to invest, locate or attract talented professionals. It represents the kinds of smart investments we can make now to ensure that we are a leader in the new economy. And, it supports a great local company that brings jobs to our region.

Trek is offering to make the $1.4 million investment to set up the program and will manage it. And, they do not expect to make any money off the program. In fact, at least for the first few years, they expect a financial loss. But, because they are located in the area and Madison is important to them, they want to try their product here, even if it means losing money. Trek has also agreed to open it’s financial books and if they do make a profit, it will be split evenly with the city.

In addition, because Trek is the only company in the country that not only offers the infrastructure for bike sharing, but also offers unique GPS technology, it is appropriate under city ordinance to do a sole source contract. That’s why it’s gained the approval of BOE and the Pedestrian Bicycle Motor Vehicle Commission.

This is the kind of thing that gives a city a competitive edge in the new economy. So much of our success in the new economy is about keeping Madison a progressive, green, and bike-friendly city. Few other places can offer this combination, and that’s exactly what will attract and retain talent. And it will reduce carbon emissions in Madison and help us reach out goal of increasing bike share to 20% by 2020.

The program will also have an immediate economic benefit. Local businesses will be more easily accessible for those who carpool or use public transit. Trek is creating jobs right here in Madison to service the B-Cycle system.

And let’s not forget, Trek is giving Madison an incredible deal for this one-of-a-kind system. It has enormous potential for our city, and I look forward to community input to determine locations and overall implementation of the system.

These are not trivial issues. Go to Brenda's site to read some very interesting discussion of them in the comments.

 

UPDATE: Madison Guy reads these and reacts: "When I hear the words "Madison" and "world class city" in the same sentence, I reach for my BS meter."  

To be fair, Cieslewicz put them in the same paragraph in adjacent sentences.

 

UPDATE #2: The Wisconsin State Journal has the story of Brenda's complaints about the ethics of the process:

Former Madison Ald. Brenda Konkel, a vocal advocate for open government,has filed a series of complaints alleging violations of the city's lobbying regulation law involving a proposed bike-share program up for approval at Tuesday night's City Council meeting.

Konkel said at least four people associated with Madison's proposed B Cycle bike-share program, including those representing Trek Bicycle Corp., did not register as lobbyists with the city but attended meetings and pledged to evaluate such a program.

"The fact that it's all been done behind the scenes is the problem," said Konkel, who also objected to the project not going out for bid. "It's hard because this looks like a cool project. (But) just because it's a cool project, we can't ignore the rules."

Madison Mayor Dave Cieslewicz said it's unclear if there were any violations to the law, and if so, they were "inadvertent" and a representative from Trek plans to register as a lobbyist soon.

If the comments at the WSJ are any indication, this should be a very hotly-debated item at the City Council on Tuesday night.

- Barry Orton

 

 

More GOP Dancing In The End Zone Before The Game Is Over

Rep. Joe Barton (R-Texas A&M) has already declared he's got the Chairmanship of Energy and Commerce locked up:

Barton, the top GOP member of the House Energy and Commerce Committee, suggested that he fully intends to push a bid to become chairman of that committee, despite rules and colleagues' concerns that could threaten his ability to take that post. Barton's apology to BP CEO Tony Hayward over the summer was a gaffe that troubled many members of Barton's own party.

Joe Barton chairing Energy and Commerce again?  We might as well have W. back in the White House.  Be afraid. Be very afraid. And GOTV Tuesday. Survival of the whole goddamn planet depends on it.

- Barry Orton