Wednesday, May 28, 2008

WMC Critics Get It Wrong

I think a lot of critics of Wisconsin Manufacturers and Commerce (WMC) are making a big mistake. There's reasonably broad recognition that WMC's constant harping about Wisconsin's business climate is probably driving business away from the state. Most commentators seem to see this as unintentional, if somewhat ironic, collateral damage from WMC's war on regulation and taxes. But they're wrong.

Many of WMC's largest and most powerful corporate members directly benefit from a weak Wisconsin economy. While their markets are primarily national and international, their labor costs are largely determined by the local job market. It is very clearly in their best interests to make Wisconsin seem as unattractive to business as possible. Which is exactly what WMC is doing.

Of course this is completely counter to the interests of the majority of WMC members who depend on their sales in Wisconsin to make a profit. But, as in all organizations, the big guys at the top set the course, and the little ones at the bottom often get screwed.

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Paul Soglin, on his superb and thoughtful blog Waxing America, has probably done more than anyone else to dig out the truth about WMC's claims. Well worth reading.

1 comment:

Jack Lohman said...

>>> "But, as in all organizations, the big guys at the top set the course, and the little ones at the bottom often get screwed."

That's exactly what's happening with WMC's health care policy. Healthy Wisconsin would benefit most of WMC's members, but their insurance company members don't like that one bit because they are making millions off of the little guy. You'd expect that WMC would sit this out because of this conflict, but they've chosen to side with the big guys. After all, they also sell their health care policies to members.

What???