There is a commonality between Wisconsin, Michigan, Illinois and possibly Minnesota (not sure about MN), and I'm certain to raise some ire with this, but here goes.
Labor Unions are the connection on the source of much fuel for the demonstrations in Madison. These are all heavily unionized states.
At the start of the Industrial Revolution back in the 1800's and well into the 1900's, workers experienced inhumane treatment, extreme safety hazards and downright exploitation. Women and children were not excluded and probably treated worse. Work animals were considered more valuable. There was always a line of workers to replace someone hurt or killed. A mule had to be purchased. Unions were a solution to this dire situation and allowed workers to affect changes within their industry. With the production boom experienced after WWII, the Unions grew at an exorbitant rate in both resources and power.
I think many would agree that power began corrupting a few years later in the 60's. With high percentage of membership, unions could shut a plant or mill down in hours. They had corporations in a vise grip and knew it. With each contract negotiation, benefit packages and salaries increased. State and Federal government allowed their employees to unionize and the power, resources and influence of the unions increased even more.
Through the next 3 decades the US experienced several recessions, and a dramatic increase in foreign competition and imports. The Rust Belt was created with closed factories across the North and Midwest states. While Southern corporations and governments agressively opposed unions for many years, they did succumb. Textile mills and other business were eventually forced to close as high wages and benefits eliminated the profit margin for things made in the USA.
Why? If a product cannot be produced at an affordable and competitive price, it won't sell. With high wages and benefit package liabilities, our companies could not compete with cheaper imports.
Now we're in the new millenium and people are living much longer into their retirement. Those high wages and benefit packages which were "collectively bargained" (I would use blackmailed) over the past few decades have now become unsustainable for both corporations and governments.
Simply put, there's not enough money coming in to cover the pensions, payroll, benefits and operations. There have to be cuts and they will need to be deep, painful ones.
It's particularly bad within governments. They don't produce, their only source of revenue is our tax dollars. Their payrolls have swelled in number of employees and salaries, some significantly higher than average for the area or inflation adjustments.
Despite massive lay-offs in the past few decades, the unions have been consistent, reliable and large contributors to political campaigns. It is estimated their combined contributions during the 2008 election year was $500 Million.
How many laid-off union members could have been helped with $500 million in assistance over the past 3 years?
Helping workers may have been the original intent. However, I think grabbing "as much as we can to keep those union dues coming in so we can get our 'friends' elected" might be the new intent. I fear Wisconsin is just the beginning.
