(city-journal)  The camera focuses on an official of the Service Employees International Union (SEIU), California’s largest public-employee union, sitting in a legislative chamber and speaking into a microphone. “We helped to get you into office, and we got a good memory,” she says matter-of-factly to the elected officials outside the shot. “Come November, if you don’t back our program, we’ll get you out of office.’

The video has become a sensation among California taxpayer groups for its vivid depiction of the audacious power that public-sector unions wield in their state. The unions’ political triumphs have molded a California in which government workers thrive at the expense of a struggling private sector. The state’s public school teachers are the highest-paid in the nation. Its prison guards can easily earn six-figure salaries. State workers routinely retire at 55 with pensions higher than their base pay for most of their working life.

Meanwhile, what was once the most prosperous state now suffers from an unemployment rate far steeper than the nation’s and a flood of firms and jobs escaping high taxes and stifling regulations.

Consider the California Teachers Association. Much of the CTA’s clout derives from the fact that, like all government unions, it can help elect the very politicians who negotiate and approve its members’ salaries and benefits.

How public employees became members of the elite class in a declining California offers a cautionary tale to the rest of the country, where the same process is happening in slower motion. The story starts half a century ago, when California public workers won bargaining rights and quickly learned how to elect their own bosses—that is, sympathetic politicians who would grant them outsize pay and benefits in exchange for their support.


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(thehill) President Barack Obama struck a hyperpartisan note Thursday, telling Democrats that he was "amused" by the Tax Day Tea Party rallies.

Obama, addressing a Democratic National Committee (DNC) fundraiser in Miami, did little to endear himself to the Tea Party groups protesting around the country, saying "they should be saying thank you" because of the tax cuts he has signed into law.

The president went as far as to say that this week's special election in Florida, which was won by Democrat Ted Deutch, was portrayed by Republicans as "a referendum on healthcare, a referendum on the stimulus." "And you know what, it was," Obama said to applause.

Obama continued to dare Republicans to run on a platform of repealing healthcare reform, telling the audience "they won't be very successful."

Despite the president's confidence, DNC Chairman Tim Kaine told the crowd that they should assume that Democrats are "running into a headwind" in the November midterms.

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(hotair)  We all know it’s coming, but I’m reasonably sure Volcker missed a memo instructing advisors not, repeat not, to mention this publicly until, oh, say, the day after Election Day 2012.

As it is, look for Gibbsy’s spin tomorrow to be, “B-b-but he was Reagan’s Fed chairman!”

Volcker, answering a question from the audience at a New York Historical Society event, said the value-added tax “was not as toxic an idea” as it has been in the past and also said a carbon or other energy-related tax may become necessary.

Though he acknowledged that both were still unpopular ideas, he said getting entitlement costs and the U.S. budget deficit under control may require such moves. “If at the end of the day we need to raise taxes, we should raise taxes,” he said.

Krauthammer’s column on the VAT came out a few weeks ago, but if you missed it at the time, now’s your chance to catch up. Perfection:

Obama set out to be a consequential president, on the order of Ronald Reagan. With the VAT, Obama’s triumph will be complete. He will have succeeded in reversing Reaganism. Liberals have long complained that Reagan’s strategy was to starve the (governmental) beast in order to shrink it: First, cut taxes — then ultimately you have to reduce government spending.

Obama’s strategy is exactly the opposite: Expand the beast, and then feed it. Spend first — which then forces taxation. Now that, with the institution of universal health care, we are becoming the full entitlement state, the beast will have to be fed.
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