Sunday, February 20, 2011

Paul Krugman Should Take a Look at Wisconsin

While making a point about Governor Scott Walker being beholden to the Koch brothers, Capper highlights the following (my bold):
This from Think Progress:

Koch owns a coal company subsidiary with facilities in Green Bay, Manitowoc, Ashland and Sheboygan.... At a time when Koch Industries owners David and Charles Koch awarded themselves an extra $11 billion of income from the company, Koch slashed jobs at their Green Bay plant:

Officials at Georgia-Pacific said the company is laying off 158 workers its Day Street plant because out-of-date equipment at the facility is being replaced with newer, more-efficient equipment. The company said much of the new, papermaking equipment will be automated. [...] Malach tells FOX 11 that the layoffs are not because of a drop in demand. In fact, Malach said demand is high for the bath tissue and napkins manufactured at the plant.
I realize this doesn't tell us anything about the relationship between Walker and the Kochs. I also happen to believe that untangling the drop in demand from the structural factors of unemployment is crucial to reducing unemployment and probably more important than whether or not Walker is doing the Kochs' bidding.

Here's Matthew Yglesias, also of Think Progress, arguing against the structural story.

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