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07 Mar 2011 23:19

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Biz: Former Michigan Gov. John Engler: Scott Walker’s template?

  • John Engler is something of a template for Scott Walker right now. The former Michigan governor, who once turned incredibly negative polls into one of the lowest unemployment rates the state has ever had, took on social welfare and, after voters eventually forgave him, was rewarded with three full terms as governor. (We lived in Michigan as kids, and Engler was extremely popular back in the day.) Spencer Abraham, who was one of Michigan’s senators during most of Engler’s time in office, wrote a pretty strong defense of Walker in The Weekly Standard, saying that if he sticks to his guns, he’ll win, just like Engler did. Or will he? A little research into what made Engler tick:
  • What happened? Forced to deal with a $1.8 billion deficit when he entered office in 1991, he began by taking a knife to social programs – specifically general assistance programs and programs that employed civil servants. The results were initially extremely unpopular – a symbolic “Englertown” went up in front of the state capital. Engler’s poll numbers initially tanked.
  • What happened next Engler’s work was eventually vindicated, and after a recovery in the state’s auto industry and many cuts, the state suddenly had a $300 million surplus. The results were so good that his name came up in vice-presidential conversations multiple times. He never got the chance, but he did leave office in 2003 as a widely-respected figure – although with a pretty big deficit.
  • His career since After Engler left office, his successor, Jennifer Granholm, had the same kind of budget hole that faced Engler twelve years before. Engler, meanwhile, is now a lobbyist – he spent six years leading the National Association for Manufacturers and now works for the Business Roundtable. People are name-dropping him for a 2012 Senate run. He’s not interested.
  • » Is Engler’s a model to follow? Depends on who you ask. A lot of GOPers have been dropping his name in recent conversations about Scott Walker’s crisis, and a former Engler staffer, John Truscott, makes a pretty apt point. “Polls don’t balance budgets,” he says, noting that it took about three years for Engler’s social changes to recharge the economy. Ultimately, though, Engler and Walker fought for different things – and the difference between cutting off unions at the knees and trimming social programs for the poor is a significant one. See, one big difference: Unions still have money and collective pull, and they’re able to use it. And Engler had backup solutions that benefited nearly everyone. How will Walker help out public employees and the people at large?

20 Oct 2010 10:15

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World: The word of the day in Britain is “austerity.” Hey, budget cuts!

  • Hear that sound? That’s the sound of a bunch of Brits taking in the government’s new austerity measures, a tour that’s hit many other European nations already. (In some countries, such as France and Greece, the reaction has been harsh and violent.) They have a plan to decrease their spending within a few years, and much of the cut is going to come directly from their welfare state. They’re cutting in other places, too, but this is where the average person will feel it most:
  • 19% in overall spending cuts over the next four years
  • 2015 the year British finance minister George Osbourne says they want have the budget balanced
  • 490k the number of public sector job cuts Osbourne says they expect to make due to austerity measures source
  • 66 the new retirement age (by year 2020) – and France is bitching about retiring at 62
  • 24 the minimum number of hours that couples need to work to receive the Working Tax Credit
  • £7B the amount the government says it could save each year with new welfare cuts source
  • » Where they’re still heavily focused: The country is making great efforts towards green energy, investing in wind energy and cutting carbon. Still, it’s worth emphasizing that these are coming during a period where they’re making some of the harshest cuts since World War II.

23 May 2010 11:13

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World: Debt crisis victim: Europe’s strong social welfare programs?

  • seven number of workers for every European retiree now
  • 1.3 number of workers expected for
    every retiree in 2050 source
  • » Why this is bad for Europe: Most nations in the continent have largely benefited from low military spending and as a result have given retirees some strong social welfare benefits. But a number of factors – the debt crisis, the declining birth rate, the overall growing age of the population – have started to make this model look shaky.

08 Jul 2009 13:31

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Biz, U.S.: Want to feel kinda depressed? Read these food stamp numbers

  • 33.8 million people are on food stamps right now – that’s a depressing record
  • +1.2 million the increase in the last two months – also depressing source

13 May 2009 08:53

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U.S.: Now that the U.S. has their stimulus, they’re not in a rush to use it

  • $787 billion size of the stimulus package passed by Congress and signed by Obama
  • $45.6 billion or 6 percent, has been used so far, mostly for social programs source