Why Richard Riordan is lobbying local unions to cut salaries
Why is former LA Mayor Richard Riordan, according to Rick Orlov in the Daily New s, trying to persuade local municipal unions to accept wage and benefit cuts? It is his contribution to business efforts to recover from the recession through wage and benefit cuts. Not only will it not work, but it is part of a larger process which several astute analysts, such as Paul Krugman, argue is leading to another depression. See highlighted explanation below. I remain skeptical, however, that the author's solution, essentially a second New Deal, will work. After all, it took WWII to resolve the economic crisis of 1929-1945. More Red Flags for the Economy By Mike Whitney http://www.informat ionclearinghouse .info/article258 79.htm July 05, 2010 " Information Clearing House " -- Bonds are signaling that the recovery is in trouble. The yield on the 10-year Treasury (2.97 percent) has fallen to levels not seen since the peak of the crisis while the yield on the two-year note h