The trials and tribulations of the Badger State continue to grow as its chances for an economic recovery become less likely. A shift in politic power resulted from the November elections. The promise was to lift Wisconsin out of debt, not raise personal taxes and make it an attractive place for business; but this has turned into a disaster. The fallout from this situation is likely to hurt the taxpayers of the state for years to come.
The new administration in Madison was faced with a multi-billon dollar deficit. It took steps to address the short-term problem of attracting new business to the state and encourage existing companies to hire by offering them tax incentives. Concurrently, the long-term issue of public employee salaries, benefits and pensions was also addressed. Since Wisconsin has one of the country's most lucrative teacher compensation packages, that's where the legislators began.
Super Bowl 2012
Wisconsin quickly became national news, because it is seen as a battleground state in the 2012 elections and the unions see their power in the public sector being challenged, and their political influence diminished. Unions have already been marginalized in the private sector, with less than 7% of workers belonging to these organizations.
Unions, both private and public, shipped people to the state capital to demonstrate and disrupt the legislation process while state senators from the minority party fled to Illinois to avoid voting on what they believed to be controversial legislation. They returned to their jobs after the bill was adjusted and passed. But a judge ruled against the new law and it is on hold as the legislation makes its way through the state's legal system.
Fearing the legislation will ultimately be decided by the state Supreme Court, currently ruled by a 4-3 majority that may uphold the legislation, unions mounted an effort to oust an incumbent judge and change the balance of power. This coincided with a statewide election in early April. There was a record turnout, but only a narrow margin separated the two candidates. A recount is next. At the same time, 16 state senators from both parties are facing recall elections. There is no suggestion of stability in the state, which is not encouraging for business or the residents.
Activists are feeling triumphant though some may not realize their efforts just sabotaged the state's future. This may not bother the unions, because they have kept the anti-government union sentiment from spreading. Although Ohio has just passed more stringent legislation, Wisconsin has remained in the forefront of the news.
When Illinois raised taxes this prompted Wisconsin to claim it was the business friendly state. With the unions showing new-found power, this notion will fade away and companies may consider Indiana, Ohio and others as better places to build plants and hire workers. So the unions have won the battle but may well lose the war in Wisconsin. As businesses move on to other parts of the country, the people of the Cheese State will have little to be happy about aside from being the home of this year's Super Bowl winner.
Did Wisconsin Voters Shoot Themselves In The Foot?
Don Potter is a Philadelphia native and 50 year veteran of the advertising agency business. Now living in Los Angeles, he has written two novels in retirement and frequently writes and speaks on marketing issues. Potter is the founder and editor-in-chief of NewSeniors.com, the first online magazine dedicated to those 65+.
NewSeniors.com articles provide thoughts, comments and opinions designed to spark thinking, foster discussion and stimulate debate. The editorial content features general news and information as well as videos of interest to the burgeoning 65+ audience. A touch of nostalgia is also included. Learn more by logging on to http://www.NewSeniors.com
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