Unionisation: Another one takes the plunge

Indiana becomes the 23rd “right-to-work” state

Feb 4th 2012 | CHICAGO | from the print edition

INDIANA, like many manufacturing states in the Midwest, has long felt the pain of seeing jobs go overseas. In his seven years as Republican governor, Mitch Daniels’s response has been to offer a strong diet of pro-business legislation. In the past few years Indiana has cut its corporate tax rate by nearly 25%, established one of the highest R&D tax credits in the country and started work on a $10 billion infrastructure-improvement plan.

Until recently, though, Mr Daniels had resisted calls to make Indiana what is known as a “right-to-work” (RTW) state. RTW legislation allows employees to decide whether to financially support a union. Without such laws unions can insist that all workers pay dues to help fund the cost of negotiating a contract with an employer, whether or not they wish to formally join the union. Now, however, Mr Daniels says he believes the state needs to sign up as well. The new legislation was passed by the state Senate on February 1st and was signed by Mr Daniels that very day, making Indiana the 23rd RTW state in America—and the first such state in the nation’s old manufacturing belt. [More...]

The pros and cons of Moon Base Gingrich

Jan 30th 2012, 21:38 by N.L. | CHICAGO (Online only)

AS VOTERS in space-mad Florida consider their options in tomorrow's Republican primary they may wonder if Newt Gingrich’s idea for a moon base is a shameless appeal to their parochial interests. But they'd be wrong to doubt his sincerity. For nearly three decades Mr Gingrich has been touting space colonisation; he co-founded the Congressional Aviation and Space Caucus and wrote a book that called for more space exploration. He is as space mad as the Floridians he hopes to win over. But that raises another question: how mad is this idea?

That depends. The idea for a moon base was a feature of George W. Bush’s space policy. But there is a world of difference between sending small groups of astronauts to a lunar base for months at a time, as Mr Bush envisioned, and having tens of thousands of people living permanently on the moon, as Mr Gingrich envisions. [More...]

Picture: Wikimedia Commons, dbking

Oiling the wheels

Jan 14th 2012, 18:09 by N.L. | CHICAGO Online blog only ..

ONE might have expected a humble presentation from Bob Dudley, head of BP, who spoke at the Economic Club of Chicago yesterday. In 2010, his company was responsible for a disaster in the Gulf of Mexico when an explosion on the Deepwater Horizon rig killed 11 men, injured 17 others, and released more oil into the ocean than any other accident in the history of the industry. But it was not to be that way. Instead, and reading between the lines, Mr Dudley had an interesting new year’s message for a country in the middle of hard economic times: you need us as much as we need you.

In the middle of 2010, BP’s reputation was in tatters. And let’s face it, 5m barrels of crude oil spilling into the Gulf were bound to upset the natives. But as the crisis unfolded, politicians made things much more difficult for BP by publicly tearing strips off the company. Eager to stay in tune with the nation, and cast off an image of impotence, the administration said it would keep its boot on the throat of BP, and the president even declared he was ready to “kick ass”. [More...]

Thinking big in space

Dec 27th 2011, 4:25 by N.L. | CHICAGO (Online only)

AS A small boy Paul Allen, the co-founder of Microsoft, dreamed of going into space. He even tried to launch the hollow aluminium arm of a chair, stuffed with propellant, into orbit. It didn't work out. But his latest adventure in space travel—a joint venture with Burt Rutan, a famous designer of aircraft—looks more promising. Earlier this month, the two of them said they will build an air-launched orbital delivery system. To do this, Paul Allen’s company Stratolaunch Systems will have to build the world’s largest aeroplane.

The Stratolaunch, as the plane will be called, will be big. Really, really big. It will have six engines, a wingspan of 117 metres (385 feet) and weigh about 544 tonnes. (The wingspan of Boeing's 747 is around half that of the Stratolaunch.) Taking off will require 3.6km of runway, and the aircraft will launch its rocket—a shortened version of the Falcon 9 rocket, built by another private space firm called SpaceX—at around 9,100 metres. The whole contraption will be able to put about 6 tonnes of payload into low-earth orbit. [More...]

Correction: I am hoping by the time anyone else reads this article again the word "hanger" will have been changed to read "hangar". As anyone older than about eight should know, one is a place for clothing and the other is a place for aircraft. I do honestly know the difference but I don't know how it came to pass that anyone would be said to be looking to find a hanger big enough for a large aeroplane.

Shovel ready

Mr Emanuel’s feeling for snow Dec 17th 2011 | CHICAGO | from the print edition

THE city of Chicago is proud of its ability to keep going, with gritty determination, through the worst of the nation’s weather. Snow that would bring London or Washington, DC, to a halt is laughed off as little more than a light dusting. This year some are expecting particularly bad weather, a test for the new mayor, Rahm Emanuel. He must keep the city moving throughout the winter, or face the wrath of the locals.

Fortunately, Chicago is well prepared for snowfall which, for the past four winters, has been over 50 inches (127cm). A secure facility on West Madison Street known as “Snow Command” houses some impressive toys. On one wall vast display-screens reveal everything you might need to know about the city’s weather conditions: the whereabouts of the fleet of up to 500 GPS-equipped snow-moving trucks; views from some of the city’s 1,000 cameras; the readings from a dozen road sensors (which pick up icy conditions); and a live feed of the regional weather system. [More...]

Detroit nears bankruptcy

Nowhere to run 

The motor city flirts with fiscal disaster 

Dec 10th 2011 | DETROIT

IN THE 1960s, the first hit song from Berry Gordy’s Motown empire was “Money (That’s What I Want)”. It might well be an anthem for modern-day Detroit. On December 6th Michigan took the first legal steps towards a state takeover of Detroit. If it happens, it will be the largest American city to be taken over by a state.
The problem has been building for decades; declining property values and the flight of better-off people to the suburbs have hit revenues, while the cost of servicing a still-sprawling city has not shrunk proportionately. The effects of the recession, particularly severe in Michigan, have provided the trigger for the crisis. Detroit’s mayor, Dave Bing, now says the city will run out of cash in April 2012. [More...]

Taxes and disinvestment

Illinoyed 

Businesses are threatening to leave 

Dec 3rd 2011 | CHICAGO | from the print edition

 THE state finances in Illinois are an ugly mess of deficits, unpaid bills and tax refund backlogs. At the heart of the problem lies a public pension liability estimated at a present value of $80 billion. The state’s pension schemes are only 51% funded, the lowest rate among the 50 states. In January, in an attempt to grapple with its problems, the state raised corporate taxes from 7.3% to 9.5% and personal income tax from 3% to 5%. Although the tax hikes are theoretically temporary—and start to expire in 2015—both the rises and the continued failure of politicians to get to grips with the budget crisis are starting to worry businesses. [More...]

And Republicans in the house are now arguing for a reduction in corporate taxation to stabilise the business climate in Illinois.