Egpyt and Wisconsin in common?
I saw a photo today supposedly from Egypt of a young man showing solidarity with the public sector protestors in Wisconsin. It strikes many of us as odd -- people who make less than $2,000 a year showing solidarity with people who make 30-50 times as much. But it inspired me to consider this parallel.
Set aside political repression: Egypt is a backwater economy. It has little freedom: in terms of being an entrepreneur, it's a tough place. Hernando de Soto, author of the Mystery of Capital, researched how difficult it was to title private property in Egypt, which leads to less collateralization to build a business. In a recent op-ed (subscription required) he laments:
The key question to be asked is why most Egyptians choose to remain outside the legal economy? The answer is that, as in most developing countries, Egypt's legal institutions fail the majority of the people. Due to burdensome, discriminatory and just plain bad laws, it is impossible for most people to legalize their property and businesses, no matter how well intentioned they might be....
All this helps explain who so many ordinary Egyptians have been "smoldering" for decades. Despite hard work and savings, they can do little to improve their lives.
Now think about Wisconsin. This is a state that also has a below-average (for the USA) amount of economic freedom. It may be easier to send your child to a private education in Egypt than in Wisconsin, for example -- all private schools in Wisconsin operate only with government approval. It ranks 37th on the scale for freedom in the states, two spots behind my own Minnesota (where one radio talk host often jokes, "the state where absolutely nothing is legal.")
The difference is that politically Wisconsin is much more free. Looking at its neighboring Iowa (#16 on the economic freedom list) it sees a state that has steered around the shoals of industrial decline better than it has. Wisconsin sees Michigan (#14) and the choices it made in 2010, and was able to vote for that model over the Illinois model of doubling down on government. In Egypt, they get the army and a slim chance of something better. In Wisconsin, they get democracy ... at least they might, if those wandering senators bore of water slides and the Tilted Kilt.
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Re: Egpyt and Wisconsin in common?
Beautifully put, King. Measured against all of the rest of the world--for that matter, against all the rest of human history--the United States of America remains, even now, a miracle. There are a lot of reasons for this, but perhaps the most important is that here us ordinary folk still get to have our say on every election day.
What effect have events in the Wisconsin legislature been having on the Minnesota legislature, by the way, King? Are Republicans in St. Paul feeling emboldened by the example of Gov. Walker and the GOP in Madison? Or instead a little rattled, perhaps, by the magnitude of the protests and unrest?
Jul '10
Re: Egpyt and Wisconsin in common?
Peter, you are many things. But you are decidedly not "ordinary folk".
Jul '10
Re: Egpyt and Wisconsin in common?
Funny you should suggest MI as a model for WI, King. Here I'm hoping that Snyder will show similar toughness to Walker when the rubber meets the road.
I also find it... odd that Michigan ranks as well as it does, especially given the MBT (MI Business Tax) which is about 5 points on profits and 8/10 of a point on gross receipts.
His proposed budget looks pretty good (it was released Thurs) it's replacing the MBT with a six percent corporate tax, while killing a bunch of sacred cow tax credits, and is cutting about 2 points (mostly from education) in spending. It reduces long term liabilities by expecting pension & healthcare contributions from public employees, with a small drop in income tax rates, new taxes on all pensions, sound familiar...
Re: Egpyt and Wisconsin in common?
Peter Robinson:
What effect have events in the Wisconsin legislature been having on the Minnesota legislature, by the way, King? Are Republicans in St. Paul feeling emboldened by the example of Gov. Walker and the GOP in Madison? Or instead a little rattled, perhaps, by the magnitude of the protests and unrest?
The Democrats here are focused on helping their friends across the border. Republican activists are very engaged. The legislators I've spoken to are watching with great interest, but we have our own battle over the budget that will play out over about ten weeks, with many skirmishes along the way. I don't think there's any question that the Legislature -- both house of which are held by Republicans -- are determined to reject Gov. Dayton's $4 billion tax increase (more than 10% of budget.)
There was a rally on the Capitol grounds by labor unions last week, but I don't think they had more than 300 people. There was an equal number of college students wanting a cap on tuition increases. Not a freeze, just a cap. We're not Wisconsin, yet.
Dec '10
Re: Egpyt and Wisconsin in common?
One reason that the Egyptians would think they should support the public employees of Wisconsin is that they think all jobs flow from the government, and they all hope to get jobs with the new Egyptian government.
Jan '11
Re: Egpyt and Wisconsin in common?
Egpyt? Egpyt! Sorry to be picky but this is Ricochet not Gateway Pundit. I'm not asking for strict adherence to Strunk & White or the Manual of Style but Egpyt?