"The executive committee of the ruling class"
This month, 37 state governors began their terms – 26 of them newly elected, and the rest re-elected. As the New York Times has reported, almost all of them have called for austerity programs that, if implemented, will amount to an attack on the living standards of working people and favor the interests of corporations and the wealthy:
The prescription? Slash spending. Avoid tax increases. Tear up regulations that might drive away business and jobs. Shrink government, even if that means tackling the thorny issues of public employees and their pensions…“The rhetoric has grown very similar,” said Scott D. Pattison, executive director of the nonpartisan National Association of State Budget Officers. “A lot of times, you can’t tell if it’s a Republican or Democrat, a conservative or a liberal.”
Governors across the country openly intend to use the fiscal crisis of the states to break the power of public employees’ unions. In Ohio, incoming Republican governor John Kasich has called for outlawing teachers’ right to strike, stripping 14,000 state-financed child care and home health care workers of their collective bargaining rights, and the repeal of prevailing wage laws concerning public contracts. Legislatures in 16 states are planning to pursue legislation that would require public sector union members to “opt in” before their unions could spend dues money on political campaigns. None of this is surprising – public sector unions have long been a target of the right and Democratic centrists – but the anti-union campaign is also being waged against private sector unions as well. Officials in ten states plan to introduce legislation to repeal the agency shop, potentially spreading “right-to-work” laws in areas outside the traditionally anti-union South and West. State fiscal crises have given neoliberals in both parties the opportunity to drive a stake in the heart of the labor movement and complete the neoliberal counterrevolution launched almost 40 years ago.
All of these developments shed light on the role of government in coordinating and pursuing the interests of capitalists in a bourgeois democracy. My own state of New York provides a particularly interesting and instructive example of this phenomenon. Corporations and conservatives have long complained about the power of public and private sector unions in state government (at over 25%, New York has the highest unionization rate in the U.S.), but have not had an effective organization to pursue their agenda at the state level until recently. As a candidate and now as governor, Democrat Andrew Cuomo has not only called for business to organize but has actively facilitated the process as well, resulting in the formation of the rather dramatically named Committee to Save New York, whose board is composed primarily by the representatives of wealthy financial and real estate interests – including Felix Rohatyn, the key player in the neoliberal resolution of the 1975 New York City fiscal crisis.
Few people outside the US would probably be aware of the dire financial situations facing most US cities and states. Since the global financial crisis, almost every state in the US has plunged into a "financial crisis".
Interestingly, Andrew Cuomo, the conservative Democratic NY governor has felt the pressure from the Occupy Movement and is now considering progressive taxation reform, including higher tax rates for the wealthy.
