Economy

The stripping of all power of the local government in Benton Harbor, Michigan has brought the national spotlight to the tiny town on the shores of Lake Michigan. The first city to be declared in a "financial emergency" by Michigan Governor Rick Snyder, CMD reported that Emergency Financial Manager (EFM) Joseph Harris was assigned to the city back in 2010 by then-Governor Jennifer Granholm. But it wasn't until March of this year that Harris essentially disbanded the local government and boards.

The Rev. Jesse Jackson, Sr. responded to this takeover while on a tour of the state, calling for a rainbow coalition to organize against the EFM bill and others that Snyder and the Republican-led Senate has passed. At a protest in Benton Harbor, Jackson said that he, along with Michigan Congressman John Conyers, Lansing Mayor Virg Bernero and Benton Harbor Mayor Wilce Cook will file a lawsuit to challenge the law's constitutionality.

The Institute for One Wisconsin, a non-partisan organization, released a report (pdf) last week that says that "despite claims from Governor Scott Walker, Wisconsin is not 'broke.'" Their research found that the state's Gross Domestic Product (GDP) has risen in the past twenty years, and though the state is overall quite wealthy, the bulk of that wealth has shifted to the richest people of the state, while Wisconsin's tax structure "is built around the middle class."

How does this shift in wealth make the state look as though it was broke? One Wisconsin stated that "this discrepancy has led to tax revenues failing to keep pace with Wisconsin's GDP, an over tax-burdened middle class, and budget shortfalls, instead of surpluses." While tax cuts for the wealthiest of the country and state have been extended, the tax burden has now been handed over to the middle class of the state, creating a disparity in people's falling incomes and rising taxes in the middle class.

The wet snow and tense atmosphere did not deter thousands of people from coming to the capitol for Americans for Prosperity's Tax Day Rally. The major draw was former Alaska Governor Sarah Palin, who was announced as a speaker days before the event on Saturday. Crowd estimates vary from hundreds to thousands, but the majority of people were there to protest -- not applaud -- Palin. One local reporter paced-off the area where the majority of AFP protesters clustered and said it totaled 20 by 35 feet.

While Wisconsin Congressman Paul Ryan prepares to shut down the federal government to prove that government is bad, analysts say the radical agenda of Wisconsin Governor Scott Walker suffered a major set back today as his good friend incumbent Justice David Prosser was defeated for Wisconsin Supreme Court.