So You Want to do Business in New York

Inflatable Rat

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Governor Cuomo is wildly popular, and he’s getting loads of credit for helping to fix the state’s fiscal crisis, and also for implementing and advocating for reforms of the way in which the state does its business. Perhaps, however, the change he’s brought has been too tentative and not wide-reaching enough.  

Take, for instance, the case of Howard Nielsen, the owner of Sticky Lips BBQ in Rochester. I first became aware of his restaurant when I saw the new one being constructed along Jefferson Road, and I had a very nice lunch there recently. He’s written an exasperated open letter right on the front page of his restaurant’s website, called “So You Want to do Business in New York“.  

The land on which the restaurant sits is owned by the Genesee Valley Regional Market Authority and leased to Sticky Lips, which owns the building. It’s a small property – a former Roadhouse restaurant – and Sticky Lips completed its renovations through a private non-union contractor. It’s not a “public work”, he’s not required under any regulation or statute to retain the services of union labor, and he is just a guy who owns a restaurant who built it out and paid a bunch of people a lot of money to renovate and build it out. He didn’t use any public money to do so. 

But the shakedown began when, halfway through the project, a guy from the carpenter’s union showed up. It was a small job, and he was told, “no thanks”.  Two days later, there was an OSHA guy camped out across the street with “a telephoto lens”. A few weeks later, a guy from the electrical union showed up. They were also told, “no thanks.” Two days later, an inspector from the state Department of Labor was on site, demanding to see the contracts to determine whether prevailing wages were being paid. 

I’m generally pro-union, and I respect the notion of collective bargaining to ensure that workers who choose to unionize are treated fairly. But that should apply to big business, or public works. Ultimately – it’s the workers’ choice whether to work for a union shop or not, and small businesses renovating a non-chain restaurant should, frankly, be left alone, much less harassed. And why is it that state and federal inspectors are seemingly acting in concert – one could even say on behalf of – the union? 

Now? Sticky Lips’ contractors were all subpoenaed for a May 16th hearing at the Labor Department for an investigation of whether laws were broken. Nielsen continues, 

Bob Bibbins pressured me to go online to register this project with the labor department, which would automatically commit me or my contractors to pay prevailing wages.  He said he would start the violation from the date he showed up, but wouldn’t put that deal in writing.  I did not submit to this online filing. My lawyer at Woods Oviatt Gilman gave Bibbins our stance that we own the building privately and we are only making improvements to the building and not the land which it sits on.

Furthermore,

In the meantime, Bibbins is going to push this and see that I pay these prevailing wages. He has subpoenaed the contractors, who have to show up May 16th and attend before Ralph Gleason, public work wage investigator. He has been designated by the Commissioner of Labor to conduct an investigation concerning Sticky Lips BBQ, “an entity subject to an investigation by the New York State Department of Labor concerning a public work project pursuant to the provisions of Article 8, New York State Labor Law.”

All I did was to put many construction workers to work. I bought hundreds of thousands of dollars of construction materials from local companies. At this restaurant, I have created over 120 good-paying jobs. The business will collect and pay hundreds of thousands dollars in sales, property, employment, and other taxes. Between my three restaurants, I have over 200 employees. I am contributing to the state, I am creating jobs. I am the type of businessman the state wants. I feel like I am being attacked by these two unions, who have put pressure on the N.Y.S. Labor Department to see this through.

Not only do I need to reinvest my profits to grow my business, but now I have to pay thousands of dollars in legal fees and worst case scenario – if the Labor Department wins, many more thousands for this prevailing wage issue.

Is this the type of business practice I should expect from New York State as I try to grow my business in the upcoming years?

Nielsen has appended some documents to his letter to prove his point. So, why exactly was this relatively small venture targeted?

We Are the Job Creators

A lot of what I learned as a political science major in the late 1980s is now obsolete – with a particular interest in Eastern European studies, all of my textbooks became woefully outdated between August and December 1989.  

But among my studies of why Weimar failed and analyses of Milovan Djilas’ New Class, I also recall that the American struggle for independence, the Civil War, and the European upheaval of 1848 were “bourgeois revolutions” and direct or indirect offspring of the Enlightenment.  A phrase that gets thrown about quite frequently in contemporary American politics is “class warfare”, but that’s absolute nonsense. The United States doesn’t have anywhere near the class conflict of, say, the UK. After all, we banned nobility and titles. 

The irony, of course, is that the notion of class struggle being a political struggle is an inherently Marxist concept. So, welcome to Marxism, Republicans!

These bourgeois revolutions generally replaced nobility and power-through-hereditary-entitlement with the rule of law and representative democracy. Some worked, others didn’t.  But in the United States, at least, the post-Civil-War 14th Amendment paved the way for the society we have today. But our national priorities and policies since the early 1980s have uniformly helped the very rich and harmed the middle class and working class. Unions are weaker, your purchasing power is stagnant, your earnings have stayed about the same.  Average Americans’ savings have declined, debt is up, trickle-down is a myth, and wealth has become ever-more concentrated, rather than spread around widely. 

So, as part of its “Ideas Worth Spreading”, the TED series of talks invited Seattle venture capitalist Nick Hanauer to speak on March 1 at the “TED University conference”.  Hanauer’s topic was income inequality, and he argued that it was the middle class, and not wealthy entrepreneurs who are the true “job creators”.  TED, however, won’t release video of the speech. Too political. Too controversial. So, here it is

It is astounding how significantly one idea can shape a society and its policies.  Consider this one.

If taxes on the rich go up, job creation will go down.  

This idea is an article of faith for republicans and seldom challenged by democrats and has shaped much of today’s economic landscape.

But sometimes the ideas that we know to be true are dead wrong. For thousands of years people were sure that earth was at the center of the universe.  It’s not, and an astronomer who still believed that it was, would do some lousy astronomy.  

In the same way, a policy maker who believed that the rich and businesses are “job creators” and therefore should not be taxed, would make equally bad policy.  

I have started or helped start, dozens of businesses and initially hired lots of people. But if no one could have afforded to buy what we had to sell, my businesses would all have failed and all those jobs would have evaporated.

That’s why I can say with confidence that rich people don’t create jobs, nor do businesses, large or small. What does lead to more employment is a “circle of life” like feedback loop between customers and businesses. And only consumers can set in motion this virtuous cycle of increasing demand and hiring. In this sense, an ordinary middle-class consumer is far more of a job creator than a capitalist like me. 

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Shooting in Defense of Self-Defense?

Trayvon Martin Protest - Sanford

Photo by Flickr user WerthMedia

In the unlawful homicide of Trayvon Martin, accused killer George Zimmerman’s family are peddling his medical records from the day after Martin was shot and killed with a single bullet to the chest

Why are they putting this out? To poison the jury pool? To generate sympathy for the living shooter and make it seem as if the dead pedestrian armed with snacks was at fault? 

Zimmerman apparently had a nose fracture, black eyes, a few cuts, and two cuts on the back of his head. Martin had injuries to his knuckles. 

The difference is, of course, that the living Zimmerman’s injuries were revealed at a doctor’s appointment the day after Martin was killed. Martin’s knuckle injuries were revealed during his autopsy. 

Zimmerman is claiming that he killed Martin in self-defense. 

Yet this is a case where the known facts seem to indicate that Martin was walking home from the store when stalked and accosted by wanna-be cop Zimmerman, who was clearly upset at the prospect of a hoodie-wearing Black kid being in his neighborhood walking home. Zimmerman then disobeyed the demand of the 911 operator to not chase after Martin, and chased after Martin, accosting him

Understand that, from Martin’s point of view, he had no idea who Zimmerman was, or what he was doing. All he knew is that there was a large man who had been staring at him from an SUV, who was now chasing him down and trying to – what? Beat him? Kidnap him? Kill him? 

The only person in this situation who had the right to defend himself was Trayvon Martin – he was completely reasonable to defend himself against this unprovoked attack from an armed lunatic – by punching the lunatic in the nose, and trying to throw him off him. 

Zimmerman got his cuts and broken nose because he attacked an innocent and unarmed person. Shooting and killing Martin for getting a busted nose and cuts on his head? Totally unreasonable force from someone who admits he didn’t know whether Martin was armed. Zimmerman attacked the kid, and the kid was fighting for his life, and started beating the crap out of his attacker. Zimmerman isn’t just a dummy who should let the cops do their jobs, he’s a horrible fighter. So, when you start losing a fight you provoked and started, that gives you the right to shoot to kill? 

Nice try. 

Electoral Fusion And Terribleness

If you ever wanted to know how political staffers get their jobs, it’s by doing a lot of boring, annoying, time-consuming grunt work that no one else wants to do. They have to be loyal and trustworthy, and they have to be able to accomplish with a straight face the tasks required of their job. 

That’s not rocket science, that’s not automatically “bad”, it’s how it’s been done since time immemorial, everywhere, and isn’t going to change anytime soon. 

But New York State is unique the way in which it permits its politics to be manipulated, and it’s unique in how corrupt and pervasive it’s become. We are one of a very small handful of states that permit electoral fusion, which enables minor parties to endorse candidates who aren’t party members. We have a “Conservative Party” that has a conservative platform to which it adheres when convenient, and we have the Tom Golisano-founded “Independence Party”, which is never independent and exists largely to confuse people who want to register as small-i independents, and don’t realize that New York calls them “unenrolled”.  We also have the Working Families Party, which is very tight with both public and private sector unions, and is candid about its activist role. Only the Green Party eschews the fusion game. 

I have written about fusion for many years, and advocated for its abolition. It most recently came up during the State Senate’s debate of the same sex marriage law, when Conservative Party “leaders” were openly threatening Senator Mark Grisanti not to vote in favor of it. It’s notable that this horrible “party” is now endorsing anti-same-sex-marriage, nominal Democrat and former County Legislator Chuck Swanick to run against Grisanti. 

After the County budget crisis of the last decade, I thought it’d be impossible for Swanick to ever dare to re-gain elected office again. Or any job that didn’t end with the suffix “the clown”. At the time, Swanick had switched to the Republican Party in order to be elected legislature chairman, and even after that, he was at the forefront of a fiscal disaster, and had a hand in assisting Butch Holt to give a county contract to his brother’s Texas-based basketball camp, and a $3 million no-bid contract to a glorified answering service called “community corrections” – a huge attempted scam.

The Republican primary race in the newly constructed NY-27 district has revealed some dramatic cleaves in the WNY Republican firmament.  You have rich, country-club Republican against middle-class, war vet Republican. You have suburban vs. rural. You have conservative vs. crony capitalism. Above all, you have the story of David Bellavia and the Erie County GOP. In 2008, Bellavia agreed to step aside in favor of Chris Lee in the NY-26 race in a deal struck with current ECGOP chairman Nick Langworthy.  The deal was, Bellavia lets Lee have the seat, and when Lee vacates the seat, it would be Bellavia’s turn.

But it didn’t turn out that way, and Bellavia was not just snubbed in 2010 when Lee resigned in a Craigslist sex scandal – he was cajoled and threatened. In early 2011, Bellavia was cornered in a back room of an Elmwood Avenue cafe by Chris Collins, Carl Paladino, and Paladino’s lieutenant, Rus Thompson.  The trio played good cop/bad cop, attempting to clear the way for Collins’ neighbor, Assemblywoman Jane Corwin, to get the NY-26 nod. They alternately threatened to reveal embarrassing information about Bellavia’s finances, then offering him an endorsement for an Assembly seat of his own.  Corwin went on to lose dramatically to Kathy Hochul in what turned out to be almost a frame-by-frame foreshadowing of the November 2011 County Executive race. 

To this day, the Erie County Republican Committee has refused to endorse Bellavia for any office, and has reneged completely on the deal it made to clear Chris Lee’s way to Washington. 

With redistricting, the lines have changed and Corwin isn’t trying again. Instead, in keeping with the apparent ECGOP policy that a chief qualification for Congress is that you reside on Cobblestone Drive in Clarence, the recently defeated hobbyist-politician Chris Collins has stepped out to yet again deny Bellavia a shot at a congressional race. Bellavia, however, is not bowing out. He has garnered the support of the xenophobic-but-wealthy Jack Davis, and the endorsement of the Republican committees of every one of the so-called “GLOW” (Genesee, Livingston, Orleans, Wyoming) counties. Bellavia’s campaign has been assisted by former Paladino campaign manager Michael Caputo, and while his fundraising gap vs. Collins is wide, so is the enthusiasm gap – Collins hasn’t made many friends, and is finding that he’s a tough sell outside of Erie and Niagara Counties, within the Buffalo media market that treated him with kid gloves. 

There is some overlap between NY-27 and the State Senate district occupied by Michael Ranzenhofer. Although Ranzenhofer claims to be neutral in the Collins – Bellavia battle, he is a product of the Erie County Republican machine, and close friends with Collins ally and Washington strategist Michael Hook. A few weeks ago, one of Ranzenhofer’s Wyoming County-based staffers, Michelle McCullough, was named to Bellavia’s campaign’s steering committee. After all, she is a Wyoming County committeewoman and at worst, she was going along with her committee’s endorsement. She was quickly fired. The Batavian has a story that confirms the political rationale and scheming that led to McCullough’s termination. Text messages confirm that Erie County GOP Chairman Nick Langworthy criticized McCullough for her endorsement of Bellavia, and one of her colleagues warned her that “Hook called Ranz” just days before her termination. 

Ranzenhofer continues to insist that he is neutral in the NY-27 primary race. 

Yet that doesn’t explain another point that the Batavian revealed. In New York, one of the easiest ways you can circulate nominating petitions for a political party with which you’re not registered is to become a Notary Public. The Batavian story reveals that at least six of Ranzenhofer’s staffers are licensed notaries, and not coincidentally went out and collected petition signatures for Chris Collins for the Conservative Party line; everybody including Michelle McCullough, the staffer fired for her support of David Bellavia. All of the signatures were collected in eastern Erie County, following an instruction to ignore GLOW counties. 

In addition to the apparent lack of supposed neutrality in the Ranzenhofer office regarding the NY-27 race, sources confirm that Erie County Republican elections commissioner Ralph Mohr delivered the Conservative Party petitions to the Ranzenhofer staffers. They didn’t collect signatures on state time, but were asked to use their own “comp” time to do so – time that was theirs and that they had earned as time off. 

It shows that the Erie County Republican Committee is not just not neutral in this race, but that it is actively assisting Chris Collins’ effort, and working in concert – in effect controlling – the concomitant effort to get Collins on the Conservative Party ballot. 

This is nothing new, and it’s not unique to the Republican or Conservative Parties. The Erie County Independence Party has lost its right and ability to endorse candidates to the state party apparatus. This is because ECDC Chairman Len Lenihan had in 2006 attempted an outright takeover of the IP by urging Democrats to become active IP members. This resulted in the local committee endorsing one candidate, and the state committee endorsing another – a conflict that was resolved in the state’s favor through recent litigation. State committee chair Frank MacKay has taken to endorsing Republicans in recent local races

You’ll note that not one piece of information written above has anything whatsoever to do with good policy, platform positions, or anything else commonly associated with what government and politics are supposed to be about.  This is all about influence and power, and in the case of the minor fusion parties, their sole mission in life is to offer and execute Wilson Pakulas in exchange for influence, power, and – above all – jobs

One of the oldest and most-repeated excuses for why we allow fusion voting in New York has to do with the mythological straight-line voter. Presumably, such a voter who is, e.g., a registered and loyal Democrat would never, ever color in a Republican ballot oval, even if the choice was for an objectively superior candidate. (Think Antoine Thompson vs. Mark Grisanti). So, the minor party lines give that type of voter the cover to vote for the right person and not fill in the “R” line. 

I’m sure these people exist, but I’m not convinced that the existence of the “C” and “I” or “WFP” lines somehow magically give them the moral cover to do something they’d otherwise never do. I’d love to see some polling on that; I think it’s utter speculation and, if it exists, affects a very small number of voters. 

It wasn’t too long ago that the Erie County Independence Party was run by a Springville-based barber who was quite brazenly transactional. The current Erie County Conservative Party leader is well-regarded in political circles, and enjoys wide, multi-partisan friendship and support due to his friendly weekend kaffeeklatsches at Daisie’s in  Lackawanna. But during at least one local supervisor’s race last year, it was revealed that the Conservative Party endorsement could be inextricably linked with Mr. Lorigo’s own business interests, as it was alleged that he had withheld an endorsement on pretextual moral grounds, but in reality because the town board had voted against a zoning change that would have directly benefited Lorigo’s business interests, and he was punishing the sitting supervisor for not asserting more influence over the process. 

State Conservative Party chair Mike Long and Ralph Lorigo are persuasive when they threaten Mark Grisanti, who defeated Antoine Thompson by only about 500 votes, and 4,300 of his votes came on the Conservative line. It comes down not to doing the right thing, but counting votes.  But really,  the Conservative Party has no business wielding the political power it does. In 2010, about 4.6 million New Yorkers voted – only about 232,000 of them on the Conservative line; that’s 5% of people who cast ballots. The enrollment in Erie County breaks down this way: Democrats: 286,112; Republicans: 153,179; Conservative Party; 11,811; Independence Party: 24,962; Working Families Party: 2,665; Green Party: 1,225; Libertarian Party: 242; unenrolled: 90,908.  So, we have 571,104 registered Erie County voters, only 2% of whom are members of the Conservative Party, and only 4% of whom are registered as “Independent”. Yet these two little nothing parties with a negligible number of members have practical control over who gets elected.

The minor parties’ political influence exponentially outweighs their membership or ballot results. I’m tired of progress and legislation being held up by little men with little minds whose political parties are only mildly more legitimate and popular than the “Rent is Too Damn High” Party. Why was Tony Orsini taken seriously as a political player? Who is Ralph Lorigo to demand fealty from candidates? How did a panoply of Independence Party hacks get jobs at the Erie County Legislature in 2010? Are Lorigo’s decisions on endorsements based on Conservative Party principles, or on unprincipled self-interest?

To put it bluntly, electoral fusion is one of the chief reasons why we in western New York can’t have nice things. It ensures that our politics are uniquely and overwhelmingly transactional, to the benefit of the connected and the detriment of the average citizen. Somewhat ironically, fusion is the reason why fusion won’t be abolished anytime soon. Too many pols have too intense a reliance on a process that theoretically relies on inflexible low-information voters to succeed. The elected who campaigns too strenuously to unsuccessfully end fusion will find himself returned to the dreaded private sector, with its crappy health insurance and absence of fat, tax-free pensions. 

End electoral fusion, and New York will have enacted a very significant reform that will, in turn, help to hasten other policies and reforms that will help move the state forward. Next time you ask why any local pol chooses not to show leadership on some matter of controversy, refer back to transactional politics and fusion. 

Nothing Comes Between Chris and his Calvins

On Saturday, the Buffalo News’ lighthearted “Off Main Street” column included an effort by multi-millionaire crony capitalist Congressional candidate Chris Collins to re-brand himself as “everyman”. 

Chris Collins, the former Erie County executive now running for Congress, decided he needed a couple of pairs of jeans to wear on the campaign trail in the district’s rural parts.

The wealthy businessman can afford to buy designer jeans at any high-end clothing store.

So where did he get them? BJ’s Wholesale Club.

“For me, BJ’s is the place to go,” Collins told us. He said he’s been buying his casual clothes there for years.

Collins owned only one pair of jeans, so he picked up two pairs of Calvin Klein jeans for $24.99 each.

We heard about this from Linda Soltis, who knows Collins and his wife, Mary, and thought the world should know about Collins’ frugal habits.

What this reveals is actually quite amusing. 

Firstly, it reveals that Chris Collins didn’t own a pair of jeans. He “decided he needed a couple of pairs” to wear while campaigning in the rural counties of NY-27. 

So, secondly, it reveals that Chris Collins thinks he needs to wear a costume in order to better mix and mingle with rural voters. 

Thirdly, even when buying his costume jeans to ingratiate himself with farmers, Collins doesn’t buy Lees or Wranglers or Levis. He buys Calvin Kleins

This man is the very embodiment of self-parody. 

Clownshoes

When professional Facebooker Sarah Palin quit her last public employment as Governor of Alaska, it was because the media were intruding too much and too far into her personal space, and her family. 

So it’s somewhat ironic to find Ms. Palin’s single-mother abstinence advocate, Bristol, criticizing the Obama family for helping the President arrive at his acceptance of same sex marriage. 

“Is anyone really surprised by the fact that President Obama came out of the closet for gay marriage? What was most surprising is when he explained how his position (supposedly) “evolved,” by talking to his wife and daughters“, wrote Bristol

The single mother of one, who is estranged from her babydaddy, went on to write, 

While it’s great to listen to your kids’ ideas, there’s also a time when dads simply need to be dads.  In this case, it would’ve been helpful for him to explain to Malia and Sasha that while her friends parents are no doubt lovely people, that’s not a reason to change thousands of years of thinking about marriage.  Or that – as great as her friends may be – we know that in general kids do better growing up in a mother/father home.  Ideally, fathers help shape their kids’ worldview.

In this situation, it was the other way around.  I guess we can be glad that Malia and Sasha aren’t younger, or perhaps today’s press conference might have been about appointing Dora the Explorer as Attorney General because of her success in stopping Swiper the Fox.

Sometimes dads should lead their family in the right ways of thinking.  In this case, it would’ve been nice if the President would’ve been an actual leader and helped shape their thoughts instead of merely reflecting what many teenagers think after one too many episodes of Glee.

At what point does Tripp‘s dad get to be dad? The irony and cognitive dissonance here is so incredible – so palpable -as to be infuriatingly hilarious. It’s got everything, starting with the irony of a single mother lecturing the President – who is in a longtime monogomous marriage – about family values.

She lectures the Obamas about how to parent; she trivializes the societal and political import of same-sex marriage – which is critically important to many people, and does no one any harm; she clumsily throws up the idea that teenaged kids and their perhaps more progressive opinions about social issues are akin to a toddler recommending fictional cartoon characters to occupy cabinet posts; and finally, she passive-aggressively attacks Glee, which is a conservative bogeyman representing popular culture’s acceptance of LGBT people as valuable members of society. 

But what I want to know is something I Tweeted shortly after learning of this astonishing criticism by America’s Walking Contradiction: 

[blackbirdpie url=”https://twitter.com/#!/buffalopundit/status/200644393131196416″]

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