Neal Asbury opened his nationally syndicated “Neal Asbury’s Made in America” show on Radio America (now on 45 stations) by warning that Detroit’s financial collapse may be repeated in other cities, particularly in Chicago, which shares many of the issues faced by Detroit. This includes a one-party rule, a broken pensions system, and the flight of manufacturers out of the city.
“Chicago was once a hub of great manufacturers, now it’s nearly a manufacturing ghost town,” suggested Neal.
Neal’s first guest was return guest Fred Wszolek from the Workforce Fairness Institute, who echoed Neal’s concern about Chicago’s future.
“Chicago’s employee pension funds are severely underfunded because they were based on bogus assumptions about the return on their investment. That’s what happened in Detroit,” said Wszolek.
He pointed to Chicago’s unrealistic city employment process that has seen city employee salaries topping $95,000 a year. He blames union bosses who think they have a magic wand that they can wave over the city, granting big salaries and benefits without any concerns about the future. He noted that you can kick a can only so far down the road before it kicks back.
“Chicago needs to come to terms and recognize that their pension plan will never be fully funded. They will need to unmake some promises and understand that they can’t tax their way out of this. Raising taxes to meet their pension needs will only result in people leaving the city. They need to review their investment expectations with an audit that will lead to a realistic understanding of the funds they will have available,” concluded Wszolek.
Neal and Co-host Dr. Rich Roffman returned to a discussion about Detroit’s economy, with Dr. Roffman revealing the unsettling news that Detroit teachers are making so little money that 200 teachers have signed up to be escorts for some “sugar daddies” to make more money.
“I’m not sure what becoming a sugar baby entails, but teachers 28-33 are signing up in hopes of making an extra $3, 000,” noted Dr. Roffman.
Neal suggested that this is another indication of a failed economy, and an American Dream that has become derailed.
“You have teachers signing up for escort duties and college graduates taking fast food jobs as a destination, not a temporary stop over. This economy can’t be built off of low paying service jobs and part-time employment,” warned Neal.
Dr. Roffman concurred, adding that only 47 percent of the workforce is in full-time jobs. Not only does this impact their ability to earn a living wage, but erodes the country’s tax base.
Making her first appearance on Made in America was Sonya Madison, a labor attorney in Atlanta, Georgia. She educates and advises employers and workers on all matters related to employment.
The conversation began with a recap of the protests by fast food workers seeking higher salaries, as high as $31,000 a year.
“People need to understand that while fast food corporations are making billions of dollars, that doesn’t mean that individual franchises are making that much money. They can’t afford to double the hourly rate they are paying. And if they do, they will have to double the cost of their food, which will drive away customers, leaving them with even less money,” predicted Madison.
She recommended that instead of employees picketing franchises, they need to get congress to pass a minimum wage. Employers are only following current federal mandates.
“I think everyone knows that fast food wages can’t sustain a family, and that while employees are pushing for an annual salary of $31,000, this is based on a 40-hour work week. This isn’t likely to happen when employers are cutting back on hours to avoid Obamacare costs,” concluded Madison.
Returning to Made in America was Seton Motley, a consultant and the founder and president of Less Government.
“The nation’s top five percent increased their wealth since 2009. The other 95 percent of the population did not. Only the wealthy can afford big government, because they can sit back and continue to make money. We’re all in the ‘red light-green light’ game we played as kids. When the government creates an unfavorable economy, everything stops, as we wait for the green light to become active and reinvest,” said Motley, who added that the longer and deeper the government expands, the more the wealthy do nothing, and the more the middle class gets crushed.
Motley noted that under Reagan, the 13 percent of the lower fifth of wage earners stayed in place. However, 14 percent of those lower fifth earners rose to the top fifth.
Neal and co-host Dr. Rich Roffman concluded the show by returning to the topic of cronyism and its impact on job creation.
Dr. Roffman asked the provocative question: “Who is reaping the windfall from Obamacare?” It turns out that the rewards are going to the very people who helped write it.
“At least 30 former HHS staffers who were involved in creating Obamacare, have joined big Washington D.C. lobbying and consulting firms or created their own firms. Why are they in such demand? Because they are helping big clients meet waiver requirements so they can avoid the Obamacare mandates they helped create,” said Dr. Roffman.
“The message is clear. If you want to make some real money, make a short stop in the government, build contacts, and then use those contacts to get rich. That’s the foundation of cronyism,” concluded Neal.
Each week Neal Asbury’s Made in America provides Neal’s insights into the week’s top news stories and their impact on the worlds of entrepreneurship, small business ownership and the overall economy. Neal’s analysis, together with co-host Dr. Richard Roffman, a veteran 30-year publisher with extensive domestic and international experience, takes a non-biased approach based on real life experience in business as an American manufacturer and exporter. Made in America airs nationally each Saturday from 7-8:00 PM on Radio America. Link to Made in America at http://www.nealasburysmadeinamerica.com.
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