SPRING 2019

PUBLISHED BY THE BADGER INSTITUTE

Victor Berger Milwaukee’s (Virulently Racist) Socialist Icon BY MARK LISHERON

The resurrection of socialism BY MIKE NICHOLS

The Hop’s influence on What are historic designations The need to revive courage development is a flop really protecting? as a modern virtue BY KEN WYSOCKY BY JULIE GRACE BY RYAN BERG EDITOR /Mike Nichols

In a free society, it’s better when we

the people — not the government — Publisher make the decisions Badger Institute ho decides? capitalist can have influence over how we Editor Mike Nichols WIf there is a common thread in our live our lives. But who can seriously deny stories in this edition, it’s that question. that the power a millionaire employer “has Managing Editor Who decides whether a property owner over me is very much less than that which Mabel Wong gets to raze or move a privately owned house the smallest fonctionnaire possesses who and build something more useful? Who wields the coercive power of the state … ?” Art Direction Helf Studios decides whether a nonprofit arts organization Julie Grace’s excellent analysis on historic gets to take down a few old trees? preservation commissions demonstrates Contributors Who decides how a whole race of people perfectly how people with a little govern- Phil Anderson who don’t have political power should be ment-sanctioned authority use their power to Ryan Berg treated? Who decides whether Milwaukee decide everything from who can cut down a Richard Esenberg Julie Grace should have a streetcar? Who decides? few trees to who can tear down a privately Marilyn Krause This has always been an essential question owned building. Mark Lisheron for a free society. F.A. Hayek wrote Even when there is a public interest, Mike Nichols brilliantly about it in the chapter of “The unfortunately, the wrong politicians and Van Wanggaard Road to Serfdom” titled “Who, Whom?” bureaucrats often are making the decisions. Ken Wysocky “Who, Whom?” was the question the Witness Ken Wysocky’s irrefutable piece Photography Russian people used to sum up the universal about the propaganda used to hype The Hop Allen Fredrickson problem of a socialist society, wrote Hayek. with bogus insinuations about economic Julie Grace “Who plans whom, who directs and domi- development downtown. The only reason Jeffrey Phelps nates whom, who assigns to other people the streetcar was built in the first place is that Board of Directors their station in life, and who is to have his somebody out in Washington, D.C., decided CHAIRMAN: due allotted by others?” to throw some federal money at Milwaukee. Tom Howatt

It is impossible for government leaders to Thankfully, we still have writers who have David Baumgarten ever determine a just and equitable allotment the courage to speak up about such things. Ave Bie of money or jobs even if they are somehow Ryan Berg’s take on this ancient virtue — Catherine Dellin completely free of prejudice or favoritism or “a type of quotidian courage for the daily Jon Hammes Gail L. Hanson self-interest or friends or relatives. And they grind of political discussions, allowing us to Corey Hoze never are. That is not the nature of most men operate and flourish within diverse political Jason Kohout — let alone abject racists like the one Mark communities” — is inspiring. David Lubar Lisheron profiles in our revealing cover story I hope you’ll decide to read it. Bill Nasgovitz Jim Nellen about socialist icon and onetime Wisconsin Maureen Oster Congressman Victor Berger. Ulice Payne Jr. It was Hayek, by the way, who also Tim Sheehy wrote of the supreme importance of private Mike Nichols, President property to a free people. Sure, a successful [email protected] Contact Us ADDRESS: 700 W. Virginia St. MISSION STATEMENT/ Suite 301 Milwaukee, WI 53204 Badger Institute PHONE: 414.225.9940 Founded in 1987, the Badger Institute is a nonprofit, nonpartisan 501(c)(3) guided by the belief WEBSITE: www.badgerinstitute.org that free markets, individual initiative, limited and efficient government and educational EMAIL: [email protected] opportunity are the keys to economic prosperity and human dignity. Social Media Follow us on: FACEBOOK TWITTER: @badgerinstitute 2 DIGGINGS CONTENTS /Departments

Badger Briefing: Here’s Frontlines: A profile what we’re hearing… of Mike Mooney Numbers and nuggets from trends we’ve Detours, obstacles and deals gone bad observed on an array of topics — from didn’t deter the head of MLG Capital, a minimum wage to Wisconsin’s tax leading commercial real estate company volatility to transportation debt...... 5 based in Brookfield. BY MARILYN KRAUSE ...... 35 Mike Nichols: The resurrection of socialism Culture Con: Breaking Democrats on the far left embrace down the decline of redistribution of income and other modern-day socialist ideals. bricks-and-mortar retail The changing landscape of retail exemplifies BY MIKE NICHOLS …...... 23 free enterprise at work. Guest Opinion: Courage BY RICHARD ESENBERG ...... …42 as a modern virtue Rather than demand safe spaces and PC, exhibit mental toughness and focus on how to disagree better.

BY RYAN BERG ...... 32

CONTENTS /Features Cover photo from Library of Congress

The Hop’s influence on Protecting history or development is a flop promoting agendas? Milwaukee Mayor Tom Barrett’s claim that the The use of historic designation nowadays streetcar swayed major real estate develop- often has nothing to do with preservation. ment decisions downtown is off track. BY JULIE GRACE ...... …16 BY KEN WYSOCKY ...... …6 Victor Berger: Is it high time to Virulent bigot legalize in Wisconsin? The untold story — finally — of Milwaukee’s Yes, legal cannabis will bring health benefits, socialist icon and Wisconsin congressman racial justice and personal freedom. and his appalling views toward blacks, im- migrants and women. BY PHIL ANDERSON ...... …12 BY MARK LISHERON ...... …22 No, the harmful effects on health and society outweigh any potential benefits.

BY VAN WANGGAARD ...... …12 GIVE THE GIFT OF A FREE WISCONSIN – free from onerous taxation, overregulation and burdensome debt

The Badger Institute invites you to make the prosperity of our state part of your long-term plans through a gift in your will or estate plan.

Legacy gifts permanently unite you to our mission to protect the principles of free markets, limited government, individual initiative and personal responsibility that are essential to our democratic way of life.

How to give: For more information or to let us know about a will or estate gift, contact Leave a donation of a particular dollar amount or a portion of your estate by including President Mike Nichols the appropriate language in your will. at 262-389-8239 or email (“I give and bequeath the sum of [email protected] to the Badger Institute, Milwaukee, WI.”)

Or designate the Badger Institute a beneficiary of a charitable trust, retirement account or life insurance policy. Badger Briefing: Here’s what we’re hearing...

See more at badgerinstitute.org

Wisconsin tax collection volatility1994 -2017

30% Corporate income tax Individual income tax 20% Sales tax 350,000 10% Wisconsin workers who would lose their 0% jobs as a result of a -10% $15 minimum wage, -20% which is nearly a third of all workers currently -30% ’94 ’96 ’98 ’00 ’02 ’04 ’06 ’08 ’10 ’12 ’14 ’16 earning less than that Dollar amounts were adjusted for in ation and expressed in 2017 dollars prior to calculating percentage changes using the Consumer Price Index for all urban consumers (CPI-U) from the Bureau of Labor Statistics. Source: U.S. Census Bureau, state and local government nance. “Minimum Wage: The High Cost of Increasing the Minimum Wage in Wisconsin to $15” by Ike Brannon and Andrew Hanson

$5. 29 The cost to taxpayers of each and every ride 25% on The Hop for the 20% next 30 years*

15% *Based on ridership levels on the Milwaukee streetcar 10% for the rst three months and the initial $128 million cost, and assuming that fares 5% and other revenues will cover the additional annual, ongoing operating costs. Wisconsin Minnesota Michigan Iowa Illinois National average

Data are from the Dental and Oral Health Services in Medicaid and CHIP report by the Centers for Medicare and Medicaid Services: Medicaid/CHIP – Health Care Quality Measures. National average is the state median. Wisconsin transportation borrowing & debt service 2000 -‘18 780 “Creating the dental therapy Bonding profession in Wisconsin could Debt service 585 reduce the shortage of dental

care providers … and the size of 390 the underserved population in the state by up to 42 percent.” 195 – Jason Hicks and Morris M. Kleiner, in their policy brief “Dental Therapists: A Solution to 0 Wisconsin’s Costly Dental Access Problem?” ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18

5 Streetcar

The Hop’s influence is a

Photos by Allen Fredrickson

By Ken Wysocky

t a press conference last fall, Milwaukee Mayor Claims that the Tom Barrett announced that in the three years since A city officials approved the $128 million streetcar streetcar swayed project, a.k.a. The Hop, assessments of properties within a quarter-mile of its 2.5-mile route have jumped nearly major real estate 28%, to about $3.95 billion. That compared with a 13.4% increase citywide. During the press conference, held at a Hop station at the development corner of North Broadway and East Wells Street, Barrett said the streetcar was the catalyst behind the $862 million decisions in downtown surge in valuations within the defined areas since 2015. “You can call it causation, you can call it correlation,” he Milwaukee are off track said. “I call it investment. Because what we are seeing and

6 DIGGINGS Streetcar

what we have experienced since we first passed the file In some cases, in fact, the projects were in the planning that created the streetcar is a nearly 28% increase in valua- stages or already underway before the streetcar was ap- tion of properties located within a quarter-mile of proved in 2015. the streetcar. The bottom line: The Hop had no influence on almost “What does that tell me?” he con- two-thirds of the $862 million increase tinued. “It tells me that there’s keen in property valuations since 2015. And interest in economic development along Mayor Tom Barrett said: the vast majority of the remaining third the streetcar line. It’s something we “ What we have was spread over hundreds and hundreds anticipated, something we had hoped experienced since we of smaller properties throughout down- for and something we had planned for town that arguably could not have been as well.” first passed affected much, if at all, by The Hop. With a construction crane and con- the file that The mayor’s office did not respond to crete pillars visible behind Barrett at the created the emailed requests for comment about the site of the BMO Tower development streetcar is Badger Institute’s findings. and with streetcar tracks nearby, the op- a nearly 28% (Since the press conference last fall, tics were picture perfect. But Barrett’s the city assessor’s office has revised assertion was anything but, a thorough increase in valuation the overall property assessments in the examination reveals. of properties located defined areas to about $3.99 billion, To test Barrett’s claim, the within a quarter-mile which amounts to a three-year valuation Badger Institute reviewed the 15 of the streetcar. increase of $907 million, or 29.35%. real estate projects that contributed ” The change does not significantly alter most to that $862 million valuation Most developers said: the Badger Institute’s findings.) increase. In all, those 15 large projects The streetcar Long-running controversy — which featured either new construc- The Hop, which began running in played no role in tion or significant renovations to exist- November 2018, has been a lightning ing buildings — generated nearly $564 development decisions. rod for controversy since Barrett first million of the gain, or 65%, based on proposed it more than a decade ago. figures provided by the city assessor’s Consisting of five electric-powered office. streetcars, The Hop runs from the Historic Third Ward The review was followed by interviews with all but one between the Milwaukee Intermodal Station, 433 W. St. of the 15 developers. The result: 14 of the developers — Paul Ave., and Burns Commons, at East Ogden and North whose properties generated over $558 million of the $564 Prospect avenues. million increase — say The Hop did not influence their Passengers ride for free during the first year, thanks to a projects. $10 million sponsorship by Potawatomi Hotel & Casino.

7 Streetcar

The Top 15 projects These real estate developments contributed most to the $862 million increase in assessed value of property within a quarter-mile of The Hop since 2015.

2015 2018 Influenced Name of development Address Developer assessed value assessed value Increase by streetcar?

1 Northwestern Mutual Tower and Commons 805 E. Mason St. Northwestern Mutual $35,525,700 $295,000,000 $259,474,300 No 2 833 East Michigan (office) 833 E. Michigan St. Irgens Partners $5,297,900 $89,307,000 $84,009,100 No 3 411 East Wisconsin Center (office) 411 E. Wisconsin Ave. Riverview Realty Partners $74,642,000 $117,761,000 $43,119,000 No 4 7Seventy7 (apartments) 777 N. Van Buren St. Northwestern Mutual $7,097,600* $47,199,750 $40,102,150 No 5 Aperture Apartments 1635 N. Water St. Mandel Group $2,264,500 $23,530,000 $21,265,500 No** 6 The Buckler (apartments) 401 W. Michigan St. Phoenix Development Partners/CA Ventures $5,000,000 $24,081,000 $19,081,000 No 7 Kimpton Journeyman Hotel 310 E. Chicago St. HKS Holdings $588,200 $19,176,600 $18,588,400 No 8 1433 North Water Street (office/retail) 1433 N. Water St. Wangard Partners $2,567,000 $20,359,000 $17,792,000 No 9 Westin Hotel 550 N. Van Buren St. Jackson Street Holdings $4,487,400 $22,274,000 $17,786,600 No 10 Avenir Apartments 1437 N. Jefferson St. Wangard Partners $5,566,000 $16,646,000 $11,080,000 No 11 The Mayer Apartments 342 N. Water St. Pieper Properties $3,779,000 $11,143,000 $7,364,000 No 12 Homewood Suites by Hilton 500 N. Water St. Bear Development $1,458,000 $8,820,000 $7,362,000 No 13 Mercantile Building (office) 318 N. Water St. Tim Dodge $4,026,000 $9,951,000 $5,925,000 No 14 Chase Tower (office) 111 E. Wisconsin Ave. Farbman Group $21,083,000 $26,646,000 $5,563,000 Yes 15 Milwaukee Marriott Downtown 323 E. Wisconsin Ave. Jackson Street Holdings $37,362,000 $42,644,700 $5,282,700 No

*2017 valuation; parcels not assembled until 2016 TOTAL $203,646,700 $774,539,050 $563,794,750 **Not reached for comment, but project’s inception predated streetcar approval Source: Assessment data from City of Milwaukee assessor’s office

Two federal grants funded about half of the streetcar’s cember, ridership fell sharply in January to 49,501, com- construction costs, and another $59 million is expected to pared with about 76,000 during its first two months, a 35% come from three tax incremental financing drop. Ridership figures from February and districts. “I don’t think March weren’t compiled, thanks to a glitch in The streetcar’s future has been clouded anyone looking an automatic passenger-counting system. because planned expansion of the route is No influence cited largely dependent on federal funding, which to make never is a sure thing. In addition, a key multimillion- It’s no surprise that the property with the component — the proposed $122 million dollar real estate biggest three-year valuation jump is the Northwestern Mutual Tower and Commons Couture high-rise apartment project near the investments is at 805 E. Mason St., with a $259 million lakefront on East Michigan Street — looking to The Hop remains in limbo. increase. Northwestern Mutual officials Plans for The Couture include a transit for (their project) confirmed the obvious: The project was in the works well before The Hop was approved, concourse through which The Hop would to be successful.” pass on its as-yet-unbuilt Lakefront Line. — Tim Dodge, thus nullifying any potential impact on the The Couture’s developer, Barrett Lo Vision- majority owner of decision to build. ary Development LLC, still is waiting for Hanson Dodge The same is true for another big-ticket U.S. Department of Housing and Urban development, the 833 East Michigan of- Development officials to approve a guarantee for the fice tower, whose property valuation rose project’s construction loan. $84 million. But developer Mark Irgens, owner of Irgens Moreover, The Hop’s ridership already has faltered. Partners and who expressed support for The Hop while After better-than-expected numbers in November and De- speaking at Barrett’s press conference, says the streetcar

8 DIGGINGS FrontlinesStreetcar

BRADY ST.

HUMBOLDT AVE. FRANKLIN PL. FRANKLIN

VAN BUREN ST.

PLEASANT ST. MARSHALL ST. ASTOR ST. ASTOR

5 CASS ST.

. T FARWELL AVE.PROSPECT AVE. S R E T A LYON ST. W 8 10

VLIET ST. OGDEN AVE. MARKET ST. MARKET

KNAPP ST. McKINLEY AVE. LINCOLN MEMORIAL DR.

MILWAUKEE ST.

BROADWAY JUNEAU AVE.

OLD WORLD THIRD ST.

WATER ST. JUNEAU PARK

STATE ST.

VEL R. PHILLIPS AVE.

STATE ST. KILBOURN AVE.

CATHEDRAL MASON ST. SQUARE PARK WELLS ST.

MACARTHUR 6th ST. JEFFERSON ST. SQUARE 4 JACKSON ST. LAKE MASON ST. WELLS ST. 1 MICHIGAN

WISCONSIN AVE. 3 14 15 2 MICHIGAN ST. 9 6 12 CLYBOURN ST.

ST. PAUL AVE. 11 Milwaukee Intermodal Station 13 BUFFALO ST.

7 CHICAGO ST.

LEGEND Milwaukee streetcar

1st ST. Phase 1 route Lakefront Line (future track) Parcels by route Phase 1, adjacent Lakefront, adjacent (not already adjacent to Phase 1) Phase 1, within 1/4 mile Lakefront, within 1/4 mile (not already selected by Phase 1 route)

9 Streetcar

didn’t affect his decision to build the tower. Ditto for his prompt him to don a developer’s hat and renovate and add decision to build the $132 million BMO Tower now under onto a building at 318 N. Water St. The building now houses construction at 790 N. Water St. Hanson Dodge and other tenants. The property’s valuation “Public transportation, and transportation infrastructure increased $5.9 million. in general, is really important to our business,” Irgens told “The Hop did not influence our decision,” he says. “I don’t the Badger Institute. “With respect to the streetcar, I’m very think anyone looking to make multimillion-dollar real estate positive about it … I think it’ll be good for downtown as it investments is looking to The Hop for (their project) to be expands and goes to more destinations. successful.” “But to be truthful, the BMO and 833 The Hop’s But like others interviewed, Dodge sees potential value, projects were not affected by the street- ridership provided the route is expanded. “If you don’t do that, it’s car,” he admits. “We made those deci- worthless,” he says. “Either you’re all in or you’re not.” sions based on our assessments of market 76,125 Lured by other factors demand and working with tenants that John Mangel, chief executive officer of Chicago-based in November wanted to sign (rental) pre-commitments Phoenix Development Partners, says The Hop had no impact with us.” on the decision to turn the old Blue Cross Blue Shield build- On the other hand, Irgens says, many 76,044 ing at 401 W. Michigan St. into The Buckler apartments. tenants view the streetcar as a nice in December (Another Chicago-based developer, CA Ventures, partnered amenity — but not so nice that they’re with Phoenix on the project.) The property’s valuation willing to pay higher rent to occupy a 49,501 increased $19 million. building located right on The Hop route, “Our project started way before the streetcar was in January rather than occupy one a block or two off even considered,” he says. “Quite frankly, we just looked the route with lower rent. February, March: at The Buckler building as a property we could get out of the “I give the city a lot of credit for Unknown because recession at a very low basis, plus we loved the location.” according to the city, having a vision and taking a risk with Ditto for Riverview Realty Partners of Chicago, which the streetcar,” he says. “As it expands, I the “passenger counting system” spent $17 million on renovating the 411 East Wisconsin think it will be a much more impactful broke down. Center office building before recently selling it to Middleton system.” Partners, another Chicago-based firm. The building’s valua- Developer Stewart Wangard, owner 67,223 tion rose $43.1 million. of Wangard Partners, says the streetcar Average for first “The streetcar didn’t influence our decision,” says Jeff did not influence his decision to develop three months Patterson, president and chief executive officer. “But it’s two properties on the northern end of definitely a good thing for that area … and as it gets com- downtown: the 1433 North Water Street pleted, I think it will cause more residential development building (the site of the old Laacke & Joys sporting goods downtown.” store) and the Avenir Apartments/retail building at 1437 N. Keith Jaffee, president of Middleton Partners, says The Jefferson St. The three-year valuation increases for the prop- Hop played no role in the company’s decision to buy the erties were $17.8 million and $11.1 million, respectively. 411 East Wisconsin building from Riverview. “We just love Nonetheless, Wangard says he supports The Hop, and Milwaukee,” he says. “We’re a Chicago-based company, but public transportation in general, provided it runs on time and we just love the market there and want to continue to support is cost-effective. “I do think The Hop will benefit us in the it — grow our footprint there.” long term,” he explains. “But the current route is too short to Other real estate developers contacted by the Badger meet the needs of someone who wants to get around the city Institute also confirmed that The Hop did not affect their on a regular basis. development decisions downtown, but they declined to com- “It won’t realize its full potential until the terminus at ment publicly. Michigan Street is completed … that’s the big link between business and tourism,” he adds. “Until they finish it out, The outlier it’ll be nothing more than a novelty.” One developer in the top 15, however, gave The Hop a Tim Dodge, majority owner of Hanson Dodge, an adver- thumbs up in terms of influence on development decisions. tising agency in the Third Ward, says the streetcar didn’t Andy Farbman, chief executive officer of the Farbman

10 DIGGINGS Streetcar

Group, a Michigan-based commercial real estate developer, downtown,” he says. “We think the majority of the impact says the streetcar was somewhat of a factor in his com- will come in one or two years when projects along the route pany’s decision to renovate the old Marine Bank building, break ground and come online,” he adds. “(Media) reports known as the Chase Tower, at 111 E. Wisconsin Ave. that (the increased valuation) was due to the streetcar … that Based in Southfield, a Detroit suburb, the company bought wasn’t entirely the case for every project. There’s never a the building for $30.5 million in 2016. The property’s assess- single factor for why a project happens.” ment increased $5.6 million since 2015. As an example, Casanova cites the Milwaukee Riverwalk “Our decisions to invest capital in an asset are based upon as a public-infrastructure project that created value and de- many factors,” Farbman said in an email. “We were certainly mand for properties along the Milwaukee River. “But it’s not aware of the improvements being made the only reason people want to live and in public transit, and it was an added work by the river,” he says. bonus.” The Hop dead-ends on Several developers interviewed West Clybourn Street. Does mass transit in general affect also question why the city cast Farbman’s real estate development deci- the net of its review of assessment sions? “Yes,” he says. “All types of tran- increases a quarter-mile in each sit are important factors when deciding direction from The Hop’s route. upon development and location. Much Moreover, the city included the area of the workforce that our tenants and around the unbuilt Lakefront spur in its prospective tenants are focused on re- calculations. taining rely on all sorts of mass transit.” Casanova says that in urban- A prominent downtown developer, development circles, a quarter-mile is Joshua Jeffers, agrees with Farbman, considered the standard distance that noting that The Hop has strongly influ- people are willing to walk to get to their enced his decisions about real estate de- destinations after disembarking from velopment downtown. While the owner mass transit. of J. Jeffers & Co. doesn’t have projects Great expectations in the top 15, he’s been a vocal streetcar Looking ahead, city officials and advocate. others are making big predictions about the streetcar’s In fact, at the mayor’s press conference, Jeffers said that potential impact. since 2011, when the initial route for the streetcar was pro- Consider a brochure from Milwaukee Downtown/Busi- posed, his company has purchased, built or is in the process ness Improvement District #21, an organization representing of building approximately $132 million worth of properties at downtown businesses. Titled the “MKE Streetcar Develop- six different sites, all directly on the streetcar line. ment and Investment Guide,” it extols the economic develop- “So far, they’ve all been very high-performing invest- ment potential within a quarter-mile of The Hop’s current and ments, and I’m excited to see how they do going forward,” future routes: he said. “This is a huge milestone for Milwaukee.” Repeated By 2030, the city expects 9,000 new housing units, a 63% attempts to reach Jeffers for comment were unsuccessful. jump; 13,500 new residents, a 55% increase; 1 million square De-emphasizing the numbers feet of new occupied retail space, a 31% boost; 4 million While Barrett declined to comment for this article, Depart- square feet of new occupied office/hotel space, a 28% gain; ment of City Development officials downplayed the interpre- 20,500 new jobs, a 23% increase; and $3.35 billion of new tation of the assessment figures. development. “When those numbers were published, the way they were Should all of that come to pass because of The Hop, who- received was a little different than how we intended it,” says ever is mayor in 2030 will have a good reason to hold a press Dan Casanova, economic development specialist lead. “The conference. And perhaps this time, the assembled media will 28% increase was supposed to be a minor point, but it’s what pause to make sure the numbers touted actually support the everyone picked up on. rhetoric. “Our intention is to track these numbers over time … and see if they change differently than the rest of the city or Ken Wysocky of Whitefish Bay is a freelance journalist and editor.

11 Marijuana Is it high time to legalize in Wisconsin?

12 DIGGINGS Marijuana

YES... NO... Legal cannabis The harmful will bring health effects on health benefits, racial and society justice and outweigh any to legalize personal freedom potential benefits

By Phil Anderson By Van Wanggaard

hile it’s clear that opinions are changing about ifteen years ago, Wisconsin outlawed public smok- in Wisconsin? ing because it is harmful. Today, many of the same marijuana legalization, it’s equally clear that Wthose who oppose its full legalization are Fanti-smoking advocates favor legalizing marijuana clinging to reasons to justify their position that are false, because they believe it isn’t harmful. antiquated and even dangerous. The increasing popularity of recreational marijuana is A January 2019 Marquette University Law School Poll not reason to legalize it. In fact, the more we learn about demonstrates the changing attitudes: 59% of Wisconsin- the impact of recreational use, especially in Colorado, the ites polled support legalization, while only 35% more we should take caution. Crime and traffic deaths oppose it. In September 2014, the last time Marquette have increased. There are more than twice as many polled on the issue, 51% were against legalization, while marijuana stores as there are McDonald’s, according to a 46% were in favor. Why the change? 2018 report by the Rocky Mountain High Intensity Drug Groups, including most prominently the National Or- Trafficking Area. ganization for the Reform of Marijuana Laws (NORML) The negative impacts in Colorado, where marijuana and the Libertarian Party, have expanded their messages has been legal since 2014, outstrip any revenue gains. In in support of legalization not only for the sake of personal short, the reality of legalized marijuana doesn’t match freedom but also for the benefit of opioid addicts, especially the rhetoric. military veterans who are overprescribed opioids upon While advocates claim marijuana isn’t a “gateway” return from Iraq and Afghanistan. drug, the facts are clear. While not every marijuana user Advocates also have promoted the facts about hemp pro- goes on to “harder” drugs, the U.S. Department of Health duction as an economic boon and the tax revenue gains for and Human Services reported in 2013 that marijuana us- states that have legalized. In addition, advocates and their ers consume more legal and illegal drugs. The Centers for supporters have pointed to cannabis-related health benefits, Disease Control and Prevention found that marijuana ad- such as those from CBD oil. dicts are three times more likely to be addicted to heroin. To further the legalization discussion, many of us who That’s because marijuana “primes” the brain for enhanced ran for office in 2016 and 2018 pointed out the vast racial responses to other drugs. By its very nature, THC — disparity in arrests, prosecutions and prison sentences be- marijuana’s main psychoactive compound — serves tween blacks and whites for cannabis-related offenses, cost- to make a user desire other drugs. ing billions of taxpayer dollars nationally on enforcement. The marijuana from the 1960s and ’70s doesn’t re- While marijuana use among blacks and whites is fairly semble the marijuana of today. It’s been genetically engi- equal, blacks are nearly four times more likely to be ar- neered over time to heighten its effects. In fact, marijuana rested for possession. Wisconsin data show the disparity ex- today is three times more potent than it was just 20 years ists here: Prison admissions in 2016 for marijuana offenses ago, according to the National Institute on Drug Abuse.

See ANDERSON on Page 14 See WANGGAARD on Page 15

13 Marijuana

Cannabis is a plant, with a multitude of industrial, medical and recreational uses — all of which are superior to what is currently legal.

ANDERSON from Page 13 is lost on these folks. They assuredly don’t want beer made illegal and would fight vigorously if prohibition laws were were higher for black offenders than white offenders. ever proposed again.) Gov. Tony Evers, in his biennial budget, proposed decrimi- It is likely that a person familiar with cannabis and its ben- nalizing the manufacture, possession and distribution of mari- efits would advocate for legalization whether their personal juana in amounts of 25 grams or less, and allowing people experience stemmed from smoking marijuana, using CBD oil who have completed sentences or probation for those crimes or just reading about it because they’d be less likely fooled by to have their records expunged. the propaganda and misinformation. “Too many people, often persons of color, spend time in Lastly, a sizable portion of the voting public and elected of- our criminal justice system just for possessing small amounts ficials believe it is their right to decide how everyone lives of marijuana. That doesn’t make our communities stronger or — not just their right but their responsibility. This safer,” Evers said in February. egotistical attitude is not confined to one politi- While public opinion has shifted, why haven’t opponents cal party, nor just on the cannabis legalization acknowledged that the right, just and fair course is full legal- issue, but it is on full display here. ization? Many opponents, mostly Republicans and conserva- Many people believe that they need to tives, are still committed to and labor under false and danger- keep cannabis away from the ous ideas. public because the masses Misconceptions on risk apparently are just too morally One is that marijuana is more harmful to a person’s health weak or stupid than substances that are legal, such as alcohol and tobacco. to make This claim has been shown to be false. their own According to a study that quantitatively measured the risk decisions. How of dying after long-term recreational use of 10 substances, insulting to the spirit of “alcohol was at the highest-risk and cannabis at the lowest- mankind, the freedoms risk end,” said lead author Dirk Lachenmeier. espoused in the Declaration of The findings, published in Scientific Reports in 2015, Independence and the whole idea of a suggested that the risk of cannabis was “overestimated in the government by, of and for the people. past,” while the risk of alcohol was “commonly underesti- Cannabis is a plant, with a multitude of indus- mated.” trial, medical and recreational uses — all of which are Another misconception is that marijuana is a “gateway” superior to what is currently legal. drug. The only reason that marijuana use sometimes leads Marijuana isn’t 100% safe, but neither is butter. While it is to the use of “harder” drugs is because it’s illegal — it is true that plant breeding has produced more potent strains of necessary to engage in criminal activity to obtain it. marijuana in recent years, even the most potent strains have In actuality, evidence shows that legal use of prescription yet to result in a death from overdose, whereas the increase in opioids and alcohol has a greater likelihood of leading to the potency of cocaine derivatives and perhaps even alcohol illegal use of opioids, and related criminal activity, than mari- content in some drinks likely has. Marijuana has caused fewer juana use. And, as the National Institute on Drug Abuse points deaths than alcohol, tobacco, prescription opioids, sugar, caf- out, the majority of people who use marijuana do not go on to feine and slippery bars of soap. harder drugs. It is time to end the war on pot, which enriches criminals Another response often used by legalization opponents and puts innocent people in jail, all at a huge cost to taxpayers. is an ad hominem fallacy. Rather than attempt to refute the It is time to fully legalize. Cannabis never should have been massive amount of scientific and legal data, and personal illegal in the first place. testimony and experience offered in support of legalization, opponents say that advocates are just “potheads” or support Phil Anderson of Fitchburg is a real estate broker, a member of the Libertarian National Committee and chair of the Libertarian Party of legalization merely so they can get high. (The utter hypocrisy Wisconsin. He was the libertarian candidate for governor in 2018.

14 DIGGINGS Marijuana

Marijuana today is three times more potent than it was just 20 years ago, according to the National Institute on Drug Abuse.

WANGGAARD from Page 13 since legalization, and property crime is up over 8%, accord- ing to the HIDTA report. Traffic deaths have increased 35%, In the first three years of Colorado’s legalization, marijuana potency increased nearly 25%. Worse yet, I recently learned and just marijuana-related traffic deaths are up 151%. from the Milwaukee Police Department that nearly all the Supporters will point to racial disparities in the enforce- marijuana sold in Milwaukee is laced with the highly addic- ment of marijuana laws, but those disparities are not unique tive and dangerous opioid Fentanyl. to marijuana laws. The solution isn’t to eliminate laws. To the While the effects of the new, more powerful strains of extent that more African Americans are arrested and prosecut- THC haven’t been studied in depth, the older, less powerful ed for marijuana possession than other races, that disparity is ones have been studied. The results aren’t encouraging. little different than the disparities for other crimes. Persistent marijuana use leads to a significant While we’re at it, let’s dispense with the argument that decline in verbal ability and IQ and alters brain we’re filling up our prisons with people convicted of development, studies have indicated. Canadian simple pot possession — black or white. It rarely happens. studies have shown that there is a relation- The 11% of inmates in Wisconsin prisons on drug-related con- ship between marijuana use during and victions aren’t just marijuana users. They’re dealers and worse. following psychiatric episodes The argument that drug-related crime will decrease with and violence. Other studies legalization is false as well. Organized crime is on the rise. have shown links between In California, 74 marijuana “grow houses” in the Sacramento marijuana use and increased area were underwritten by Chinese organized crime, authori- risks in offspring of psy- ties say. Chinese, Cuban and Mexican drug rings have set up chiatric disorders including shop. In Colorado, over seven tons of black-market marijuana schizophrenia, depression were seized, the HIDTA report said. and anxiety. Ironically, You may wonder why Colorado even has black-market advocates often claim that marijuana since it is legal there. From the Boston Tea Party marijuana eases these disor- and the Whiskey Rebellion to today, Americans go to great ders, not that they cause them. lengths to avoid taxes. Hence, the rise in organized crime and In Colorado, short-term health detri- black-market marijuana to skirt the 15% tax. ments associated with legalized marijuana That’s not to say Colorado doesn’t earn revenue from its have emerged as well. Marijuana hospitaliza- legal marijuana. The state is earning about $250 million per tions are up 148% in four years, and emergency year — that’s less than 1% of all revenues. In Wisconsin, it room visits have increased 52%, according to the HIDTA would be an even smaller percentage. report. A new study found a 300% spike in marijuana-related When one looks dispassionately at the evidence, the ER visits in that period. Suicides in which a person shows conclusion is clear. Following marijuana legalization, crime traces of marijuana are up 60% to 140%, depending on the and traffic deaths have spiked. Organized crime and human year and age. trafficking have moved in and/or expanded. Hospitalizations Harm beyond the individual and suicides have increased. The research on individual health Some will argue that marijuana only harms the person us- effects is mixed at best and downright scary at worst. Taxpay- ing it, implying the state should stay out of it. That might be ers and families bear the burden of these costs — all for less a valid argument if only it were true. We have all sorts of than 1% of state revenues. And by the way, marijuana remains laws that limit personal freedom for the greater good. illegal under federal law. For the safety of everyone, government either prohibits or The costs of legalizing marijuana for recreational use out- requires something — from building permits to seatbelt use to weigh the benefits — and it’s not close. mandatory insurance. State. Sen. Van Wanggaard (R-Racine) served as a Racine police of- Those marijuana hospitalizations cost everyone, not just the ficer for nearly 30 years. He is chairman of the Senate Committee on patient. In Colorado, violent crime has increased almost 20% Judiciary and Public Safety.

15 Historic Preservation Protecting history or promoting agendas?

ALLEN FREDRICKSON PHOTO A grove of horse chestnut trees at the Marcus Center for the Performing Arts in Milwaukee sparked a historic preservation battle.

16 DIGGINGS Historic Preservation

The use of historic designation nowadays often has nothing to do with preservation

ANALYSIS

By Julie Grace

ake a drive through downtown Milwaukee, and you’ll notice iconic landmarks that have contributed Tto the city’s rich history. Such as the Historic Pabst Brewery — the first major brewing company to take root in Milwaukee in 1844. Or Turner Hall — the 1882-built ornate ballroom designed by German American architect Henry C. Koch. Or City Hall, also designed by Koch and the world’s tallest inhabited structure in the 1890s. There’s no doubt those sites are historic, but what about the Marcus Center for the Performing Arts, built just 50 years ago and already remodeled multiple times? Or a former pharmacy on the city’s south side that most ALLEN FREDRICKSON PHOTO recently housed a beauty salon? A potential hostile takeover of Gannett Co. Inc., owner of Or a house in Madison that not all that long ago was the Milwaukee Journal Sentinel, prompted two aldermen to owned by a former politician who helped enact gay rights nominate the newspaper building for historic designation. legislation? composed primarily of unelected citizens appointed by Are those sites uniquely historic? Culturally significant the mayor. The commission defines “historic” as “the at- enough to be indefinitely protected from any external tributes of a district, site or structure that possess integrity changes or demolition? of location, design, settings, materials, workmanship and There are now some 180 places on the list of locally association.” historic districts, sites or structures in Milwaukee alone, Yet the considerations used to determine whether a and that number is rapidly growing. So are questions about site fulfills the definition are so numerous, subjective whether the push for such designations is driven by agen- and general that virtually any property could qualify. das that have less to do with history than latter-day politics, They include criteria such as “location as a site of a signifi- less to do with cultural or architectural significance than cant event” and “portrayal of the environment of a group opposition to what ought to be free-market transactions or of people in an era of history.” private property rights. If the site meets at least one of the 10 broad criteria, the How historic preservation works application is approved and sent to the Common Council While the impacts of local historic designations are far- for a final vote. (See the list of criteria on Page 20.) reaching, the process is fairly simple. Once a property is designated as historic, it cannot be Any resident can nominate a site or structure that he or exteriorly altered or demolished without the commission’s she believes is of historic, architectural or cultural sig- approval. This is true all around the state. nificance. In Milwaukee, for example, nominators submit In other words, when homeowners in historic dis- applications describing the property and why they believe tricts want to replace certain windows, install a new it is significant along with a $25 fee (aldermen are exempt roof or add a porch, they must obtain approval from a from the fee). small government body that decides if the changes are The nomination then is presented to the Historic “sympathetic to the historic character of the property.” Preservation Commission, a seven-member panel often The same goes for businesses that wish to expand

17 Historic Preservation

or add on to a historic building. What often happens, though, is preservation commis- sions deny the property owners’ requests in order to block specific development plans. Prudent or ridiculous? In 2015, state Rep. Scott Allen (R-Waukesha), chair of the Assembly Committee on Community Development, co-authored a bill to address the issue. His legislation, which became law, requires local gov- ernments to notify property owners who would be affected by a proposed historic designation and to hold public hearings before new properties or neighborhoods are des- ignated. If owners oppose the designation, they can appeal to a local governing body. However, a majority vote of the body is needed for a reversal. “There is certainly value in historic preservation, but just because something is old doesn’t mean it’s good,” Allen says. “When are historic designations prudent? And and selling off the buildings. when are we getting ridiculous? We need engaged citizens The official rationale for the nomination included the to bring common sense to the table.” 1924 building’s architect, Frank D. Chase, the simple “de- The Apartment Association of South Central Wisconsin sign and form” of the building and the fact that it housed hears complaints from a wide array of Wisconsinites about “the most successful and influential newspaper in Milwau- the problem, says spokesperson Nancy Jensen. kee and Wisconsin.” “The (historic designation) statutes are But Bauman, who represents downtown, admits that he well-intended, but they’re often misused,” she says. nominated the building in response to the takeover bid. “Whether it’s a large developer, a smaller property owner The report presented by commission staff was equally or a farmer, they’re all having the same problems with try- forthright about the motivation. ing to do renovations to their properties and running into a There’s nothing necessarily improper about trying to group of unelected individuals who stop them from doing save a historically significant building from the wreck- what they want to their own property.” ing ball. However, the purpose of historic desig- “We’re seeing some rather wealthy commissioners who nation is to preserve history — not to prevent a are misusing these statutes to overrule what property own- specific property transaction or development plan. ers actually want to do,” she adds. In the case of the Journal Sentinel building, there Journal Sentinel building was a very public discussion of the Milwaukee Bucks’ In most cases, property owners are not the ones nomi- apparent interest in razing the building for the new nating their buildings for historic designation. arena that eventually was built just down the street — a For instance, in February, Ald. Bob Bauman — the one project with broad political support. At that time, no one elected official on Milwaukee’s Historic Preservation nominated the building for historic designation. Commission — and Ald. Michael Murphy nominated the Earlier this year, Gannett reportedly entered a pur- Journal Sentinel building at 333 W. State St. The commis- chase agreement with developers Interstate Develop- sion approved the designation in March. ment Partners LLC and J. Jeffers & Co. And before that, In recent years, potential buyers have expressed inter- in 2017, there was another preliminary deal to buy the est in the building, but it was not until Digital First Media building, which fell through. Neither of those potential began a hostile takeover bid for Gannett Co. Inc. — owner sales spurred a historic designation effort. of the Milwaukee Journal Sentinel and its building — that Bauman told the Badger Institute in an email: “The historic designation was considered. Digital First Media current buyer — a partnership of two local developers has a reputation for expediting the demise of newspapers who have developed several historic properties in Mil-

18 DIGGINGS Historic Preservation

t felt like the odds were Patrick Landry, stacked against us. For some Notre Dame “ reason, this random building School of Milwaukee I meant something to them.” president

Notre Dame School of four failing trees in the grove, with the stipulation that Milwaukee had planned they be replaced within a year with the same type of tree. to raze this vacant Soon after the commission’s vote, the center cut down commercial building the four trees. for a playground but Reasons cited for the designation include the location, was thwarted by an which “was symbolic of Milwaukee’s renewed optimism 11th-hour historic designation. with regard to the arts” after World War II and the Korean War, its “Brutalist/Formalist style,” the “significant mod- JULIE GRACE PHOTOS ernists” who designed the building and landscape, and the “site in the heart of” downtown. The Marcus Center, in arguing against the designation, pointed to the center’s 11 major renovations, which it said voided the site’s historic integrity. The center has stated repeatedly that the designation greatly affects its redevel- opment plan. Residents also have voiced concerns, citing the need for the center to adapt and grow. The designations for both the Marcus Center and the Journal Sentinel building still require Common Council approval, which could come on April 30. The Marcus Cen- ter has already said it will appeal the decision. Notre Dame School of Milwaukee These historic designations are hardly the first to derail development or override a property owner’s plans. When Notre Dame School of Milwaukee, 1418 S. Lay- ton Blvd., sought to demolish a vacant commercial build- ing it purchased as part of an expansion plan, it was barred waukee — is comfortable with historic designation.” from doing so when the Historic Preservation Commission Marcus Center for the Performing Arts granted historic designation — right before demolition was Meanwhile, another downtown site, the Marcus Center to take place. for the Performing Arts, became embroiled in a historic The commission cited the building’s architectural char- preservation dispute over a grove of 36 horse chestnut acteristics (the “use of stone, brick and stucco, twisted col- trees designed by Dan Kiley. umns or colonnettes, tile inserts, iron balconets, tile roofs The nonprofit center, built in 1969 at 929 N. Water St., and shaped parapets” common in Mediterranean Revival- unveiled plans in December to revamp its campus, style buildings) and its unique location (on “a prominent which called for removal of the trees. In response, two corner of two busy traffic arterials”). landscape architects nominated the center for historic An area resident nominated the building after learning of designation in January. the school’s demolition plans. On April 1, the Historic Preservation Commission ap- “It was a very frustrating experience,” says school Presi- proved the designation but granted permission to remove dent Patrick Landry. “The building was not historic

19 Historic Preservation

when we purchased it (in 2016), or we wouldn’t have The criteria for historic spent the $150,000 to buy it.” For many years, the building, built in 1896 and designation in Milwaukee remodeled in 1931, was a local pharmacy. It later housed a tax service, a copying service and, most The 10 considerations used by Milwaukee’s recently, a hair salon. The school had intended to build Historic Preservation Commission to determine if a site is historic are: a playground in the space but now plans to gut the building and use it for storage. • Its exemplification and development of the “There are bullet holes through the glass, so using cultural, economic, social or historic heritage of the space for educational purposes is really not an op- the city, state of Wisconsin or the United States. tion,” Landry says. • Its location as a site of a significant event. “To be honest, it felt like the odds were stacked against us,” he adds. “For some reason, this random • Its identification with a person or persons building meant something to them.” who significantly contributed to the culture The same year, the commission granted historic and development of the city. designation to the Historic White House Tavern in the Bay View neighborhood — a restaurant that was • Its portrayal of the environment of a group of vacant for years — after a development group sought people in an era of history characterized by a to add a patio. The developers insisted they would distinctive architectural style. preserve the history of the 1890 building, at 2900 S. • Its embodiment of distinguishing Kinnickinnic Ave., and would only allow a tenant characteristics of an architectural type of with the same priorities. specimen. The commission cited the tavern’s Queen Anne style, the fact that it had been a gathering • Its identification as the work of an artist, place for politicians for years and its location architect, craftsman or master builder “at a bend of Kinnickinnic Ave.” whose individual works have influenced the development of the city. Clarenbach house in Madison Historic designations stymie develop- • Its embodiment of innovation in ments outside of Milwaukee as well. In architectural design or engineering, Madison, the city’s Landmarks Commis- pre- or post-World War II, expressed in sion is considering the historic designa- design, details, materials craftsmanship, tion of a house at 123 W. Gilman St. near construction techniques or function of Capitol Square, where some of the state’s one or more buildings or structures. first LGBT legislators and activists had lived and gathered. Its relationship to other distinctive • The former residents include the first areas which are eligible for preservation openly gay elected official in Wisconsin according to a plan based on a historic, (Madison Ald. Jim Yeadon), a former cultural or architectural motif. Dane County supervisor (Lynn Haanen) • Its unique location as a singular and, most notably, former state Rep. David physical characteristic which represents Clarenbach, who lived in the house while an established and familiar visual feature he helped to pass the Gay Rights Bill of of a neighborhood, community or city. 1982 — the first of its kind in the coun- try. Preservation supporters say the 1886 • Its association with a pre-European house also served as a place where LGBT settlement. activists discussed strategies, politics and legislation.

20 DIGGINGS Historic Preservation

e’ve found that it is becoming more mainstream Margaret Watson, for people to weaponize the (historic designation) CEO of Steve Brown “ Apartments W ordinance to obstruct development.”

are not involved more in these decisions.” Jensen, of the Apartment Association, agrees. “What it really comes down to is that (the preservation advocates) don’t want development on the lot,” she says. State and national registries Not all forms of historic preservation come with such strict guidelines. In fact, the state and national registries are both “honorary” programs, meaning that property owners do not need government approval to make changes to the properties. There are over 90,000 properties on the National Reg- ister of Historic Places, which says it is the “official list” of the nation’s historic sites. In Wisconsin, there are about 2,500 historic state and/or national properties. Unless there A house on West Gilman Street in Madison where LGBT are tax credits attached to the sites, owners do not need legislators and activists lived and gathered in the 1980s permission to make changes to their properties. is being considered for historic designation. That’s why, as many affected by these decisions have argued, so many local historic preservation commissions Since 1989, Steve Brown Apartments has owned the are used to protect properties through historic designation. house and considered building apartments there. But A policy solution? shortly after its plans were announced, a local historian Jensen and Watson say they’d like to see reintroduced filed an application for historic designation in late 2017. in this legislative session a measure similar to one that The company proposed what it thought was a sustain- was stripped from Allen’s bill in 2015. The provision of- able solution — offering to donate the house to the City of fered more protection to property owners in the form of Madison and pay to move it to a plot just one block away an essential veto: If owners oppose the designation or if in the same historic district. two-thirds of property owners oppose the designation of a “Our understanding of historic preservation is a little historic district that includes their homes, the designation bit more in-depth,” says Margaret Watson, CEO of Steve would not pass. Brown Apartments. “But we also respect Clarenbach and “People serious about historic preservation need to have support his work, which is why we’re willing to donate the everyone at the table for these discussions,” Watson says. house and move it at our own expense within the historic “But property owners — those taking on the most risk district.” from these decisions — aren’t part of the conversation on However, Watson says, her company has not heard back the front end, and that’s a problem.” from the Landmarks Commission in about a year. “What we really want is owner consent,” Jensen says. “We’ve found that it is becoming more mainstream for “We live in a democracy, so it’s shocking that little com- people to weaponize the (historic designation) ordinance to missions of unelected people can make decisions that obstruct development,” she says. “How is it that anyone affect so many people across the state.” walking down the street can submit an application for your property? It’s a bit of an injustice that owners Julie Grace is a policy analyst for the Badger Institute.

21 Socialism

Victor Berger: Virulent Bigot The untold story — finally — of Milwaukee’s socialist icon and his appalling views toward blacks, immigrants and women

By Mark Lisheron

n the day it was announced Grateful Milwaukee voters, Gurda said, that Milwaukee would host the elected three socialist mayors over a span ODemocratic National Convention of 50 years: Emil Seidel, Daniel Hoan in July 2020, the executive director of the and, finally, Frank Zeidler, who served Wisconsin Republican Party said the deci- until 1960. Perhaps more significantly, sion made perfect sense. Milwaukeeans sent the first socialist to “No city in America has stronger Congress: Victor L. Berger. ties to socialism than Milwau- A few years ago, Berger was kee,” Mark Jefferson said in named one of the “100 Greatest March. “And with the rise Americans of the 20th Centu- of Bernie Sanders and the ry” by Peter Dreier, a profes- embrace of socialism by its sor of politics at Occidental newest leaders, the Ameri- College. To plug his book of can left has come full circle. the same name, subtitled “A It’s only fitting the Democrats Social Justice Hall of Fame,” would come to Milwaukee.” Dreier wrote an essay for The Milwaukee historian John Gurda Huffington Post asking, “Why Has was interviewed by The Washington Post Milwaukee Forgotten Victor Berger?” to fact-check Jefferson’s assertion. Gurda, Unlike the much-beloved socialist may- as he has done so many times over the past ors of Milwaukee, Dreier lamented, not a few decades, recounted the story of how street, a building and certainly no bridge socialists cleaned up Milwaukee’s politi- is named after Berger. “Unless we know cal corruption and built the much-admired our history, we will have little understand- parks system and public water system, ing of how far we have come, how we hence the nickname “Sewer Socialists.” got here and how that progress was

22 DIGGINGS Socialism

Mike NICHOLS The resurrection of socialism Democrats on the far left embrace redistribution of income and other modern-day socialist ideals

t’s hard to know whether social- Iist icon Victor Berger — were he to wake up today at the spot on Dr. Martin Luther King Jr. Drive where he went down after being nailed by a Milwaukee streetcar in 1929 — would be more aghast or gratified. A virulent racist, he surely would be aghast at the name of the road, which was known as Third Street when he died and renamed after the civil rights leader in 1984. Like most social- ists and many a Progressive, Berger believed in equality only so much as it extended to others who thought and looked like him. But, then, the onetime newspaper editor and U.S. congressman might find much to revel in today as well, including a renewed interest in social- ism — at least the modern version of it. Victor L. Berger, The “definition of socialism” Berger shown here in 1923, wrote in 1898, “is the collective owner- was the first socialist ship of all the means of production elected to Congress. and distribution,” and for most of his See NICHOLS, Page 25

LIBRARY OF CONGRESS PHOTO

23 Socialism

In 1902, Berger authored and published an editorial headlined “The Misfortune of the Negroes” on the front page of his newspaper, the Social Democratic Herald.

WISCONSIN HISTORICAL SOCIETY PHOTO Berger (center of photo with hat in the second row from bottom) and his newspaper staff pose for a portrait at The Milwaukee Leader, established in 1911. He also published Wisconsin Vorwaerts, established in 1892, and the Social Democratic Herald, which began printing in Milwaukee in 1901.

made thanks to the moral convictions and political skills was a virulent racist. of great Americans like Victor Berger,” he wrote. Although an immigrant himself, Berger was Perhaps this exploration of the ideas and beliefs of steadfast in his opposition to immigration. And while Berger, the founding father of American socialism in the the national and local Socialist parties favored it, Berger early 20th century, will help the socialists, economic also railed against women’s suffrage, which he insisted redistributionists and social justice warriors descending would “delay the triumph of Socialism.” on Milwaukee next summer heed Dreier’s call to know The peculiar evolutionary socialism subscribed to by their history. Berger and others in the right wing of the Socialist Party at Forgotten or overlooked by Gurda, unmentioned in the the time, with its hierarchy of races and blacks doomed to biography of him by the Wisconsin Historical Society and extinction, would much later be wrenched into the national unknown to many modern historians is the fact that Berger socialist philosophy of the Nazi Party.

24 DIGGINGS Socialism

On the afternoon he stepped into traffic at Third and schools. His passion, however, was for the ideas of the Clarke streets and was struck by a slow-moving streetcar, German industrial workers who fled the societal stric- according to a Milwaukee Sentinel article from July 17, tures of the German unification in 1871 and comprised 1929, Berger was nearly a decade removed Milwaukee’s second great German from national Socialist Party politics. But immigration. By 1892, Berger had pur- it is impossible to imagine the recent re- “There can be chased a German language newspaper, emergence of distinctly American socialism no doubt that calling it Wisconsin Vorwaerts without returning Berger to his rightful (“Forward”), using it primarily to place, alongside Eugene V. Debs, as a the negroes proselytize for his socialist ideas. founder of the movement. As his foremost biographer, historian and mulattoes Sally Miller, wrote, Berger contributed Milwaukee’s German migration constitute a nothing to the body of socialist theory. Born to a Jewish family in 1860, Berger He believed in the eventual government came to Milwaukee in 1881, three years lower race.” takeover of the means of production but after his parents, prosperous innkeepers in – Victor Berger refused to be wedded to Marxist doctrine. the Nieder-Rehbach region of what was He thought socialism could be transcen- then the Austrian Empire, immigrated to dent without a violent revolution. Bridgeport, Connecticut. Berger “argued that it was possible to act on the basis of Milwaukee was then known as the German Athens of relevant socialist principles within the American political America, its development spurred by successions of Ger- system,” Miller wrote in her long-out-of-print book, “Vic- man immigration. At the end of the 19th century, more tor Berger and the Promise of Constructive Socialism.” than 150,000 of the city’s 285,000 people were either This eagerness, which was critical to him being elected born in Germany or were children of Germans. to Congress five times, formed a schism with a Social- Educated at the universities of Vienna and Budapest, ist Party left wing that would have agreed with U.S. Rep. Berger began teaching German in the Milwaukee public Alexandria Ocasio-Cortez’s (D-N.Y.) contention that

NICHOLS, From Page 23 the minority should resist,” he wrote in an essay titled “Real Social-Democracy” in 1906. life at least, he was an ardent believer. Capitalists, in There’s much debate over whether the far left of his eyes, were “exploiters” and “tyrannical.” Socialism the Democratic Party nowadays is fairly described as was inevitable. “Just as feudalism followed the ancient customs of socialist. While U.S. Rep. Alexandria Ocasio-Cortez slavery,” he wrote, “so will socialism (D-N.Y.) has pronounced capitalism “irredeemable,” follow capitalism.” While he — like no one has suggested the outright other Milwaukee socialists who fol- transfer of the means of produc- lowed — pushed somewhat incremen- tion to the government. Perhaps tal reforms, he saw them as “stepping in a nod to political expediency, stones.” The ultimate aim, he wrote, even U.S. Sen. Elizabeth Warren was “to abolish the capitalist system (D-Mass.) has pronounced herself entirely.” “a capitalist to my bones.” Ocasio-Cortez Warren Berger preferred to be called a Austrian economist F.A. Hayek, Social-Democrat because, unlike the revolutionar- were he still alive, would find that laughable. Hayek ies, he believed in “the use of the ballot” — at least at began writing “The Road to Serfdom” in the 1930s, and first. “We do not deny that after we have convinced it was published in the mid-1940s. the majority of the people, we are going to use force if See NICHOLS, Page 27

25 Socialism

the capitalist system within that the free contact with which Berger set out to the whites has led to the work was “irredeemable.” further degeneration of There was a second the negroes, as of all other yawning gulf between the inferior races,” he added. Socialist Party wings of the “In the case of the time — that of the place of negro all the savage African Americans in the instincts of his forefathers movement. in Africa come to the sur- In his 1903 essay, “The face,” he continued. Negro in the Class Strug- Miller, whose views on gle,” Debs, the leader of Berger’s brand of social- the party’s left wing, wrote, ism are measured but “We have nothing special admiring throughout her to offer the Negro.” The biography, referred to him much-repeated quote is not as a “virulent bigot.” only truncated but taken In the July 1971 Journal out of context. of Negro History, Miller The full quote ends said Berger had made it with “and we cannot make clear in his writings that separate appeals to all the he believed African races,” and Debs declared, Americans were incapable “The Socialist Party is the of being organized and party of the working class, were a societal problem regardless of color — the outside the scope of party whole working class of the ideology and politics. whole world.” “In almost a pyramidal view he spelled out dis- Blacks deemed inferior tinctly superior and inferior Berger offered up a WISCONSIN HISTORICAL SOCIETY PHOTO racial and ethnic classes. very different idea of what This campaign poster was for an April 1918 special election White was at the top of socialism had to offer to the U.S. Senate, which Berger lost. the color pyramid, yel- African Americans in an low below and black at the editorial he wrote and published in May 1902 on the front bottom, and potential for education, unionization and even page of the second newspaper he had acquired, the Social morality progressively declined,” Miller wrote. “All con- Democratic Herald. temporary strains leading toward racism coalesced in The “negro question” will someday give socialists “a the European-born Berger.” good deal of headache,” he wrote, but socialists shouldn’t While marginalized by recent histories, these contem- trouble themselves now with the travail of future genera- porary strains played a significant role in the development tions. Berger was straightforward in his reasoning. of American socialism. Some socialists, including Berger, “There can be no doubt that the negroes and mulattoes had by the 1880s found in the evolutionary theories of constitute a lower race — that the Caucasian and indeed Charles Darwin and Herbert Spencer a scientific frame- even the Mongolian have the start of them in civilization work for explaining the inevitability of socialism. by many thousand years — so that negroes will find it Lewis Henry Morgan, an American anthropologist who difficult ever to overtake them,” Berger wrote. died in 1881, laid out his theories of racial hierarchy in “The many cases of rape which occur wherever “Ancient Society,” an 1877 book that influenced the later negroes are settled in large numbers prove, moreover, work of Karl Marx and Friedrich Engels.

26 DIGGINGS Socialism

Morgan built on the work of naturalist Ernst Haeckel, tion, an anti-Semite, which lent a nationalist frisson to his the great popularizer of Darwin in Germany. Twenty years supposed scientific work. As University of Chicago pro- earlier, in his book, “Natürliche Schöpfungsgeschichte,” fessor Robert Richards has written, Haeckel’s work would or “The Natural History of Creation,” Haeckel posited survive and decades later provide a scientific underpin- that there were 10 distinct races. At the top were Cauca- ning for the theory of racial purity that helped define the sians. At the bottom were Negroes, whom he compared national socialism of the Nazis under Adolf Hitler. in physical makeup to “four-handed apes” and whose However “virulent” Miller found Berger’s bigotry, relative lack of development eventually would lead to it’s important to place it in the context of his time and their extinction. particularly of his place. Although he became internation- Haeckel was, not unlike many Germans of his genera- ally known as a socialist leader, Berger’s worldview

NICHOLS, From Page 25 Socialism, he also might point out, is today marked by “At the time I wrote, socialism meant unambiguously more than mere misguided economics. It is eerie how the nationalization of the means of production and the some of the language and strategy of the far left echo central economic planning which this made possible the socialist impulses that have historically metamor- and necessary,” he wrote many years later in the pref- phosed into totalitarianism: i.e., the rise of group-think ace to the 1976 edition. so counter to individual freedom, the vicious demands By the 1970s, things had changed. for intellectual adherence to accept- Socialism, Hayek wrote, came “to mean chiefly the able opinion that others have likened extensive redistribution of incomes through taxation to “struggle sessions,” the maligning of and the institutions of the welfare state. In the latter big business and banking. kind of socialism, the effects I discuss in this book are Berger perhaps might be gratified brought about more slowly, indirectly, and imperfectly. by the resurrection of socialist thought (But) I believe that the ultimate outcome tends to be were he to reappear — though, like very much the same.” many socialists, his disdain of profit and capital turned out to be pretty By that measure, much of what is advocated on the Hayek left today — universal, government-funded health care, theoretical. the Green New Deal, “free” college, the $15 minimum In “The Family Letters of Victor and Meta Berger,” it wage — is indeed a latter kind of socialism that Hayek appears even he occasionally realized the absurdity of feared could slowly destroy the market economy and his beliefs. Berger, in fact, bought land and acquired smother the creative powers of a free civilization. stock in several companies. Toward the end his life, according to the book, Berger came to lament “that I feel like a sinner at times — since I had the natural ability to make money in any business, Views about capitalism and socialism Ages 18-29 and thus having had the gift easily to secure a comfort- Positive view of capitalism Positive view of socialism able and care-free old age for my wonderful wife and 100% for myself — and to leave some wealth for my children — that I missed these opportunities by spending my life 80% 68% in a thankless movement.” 51% 60% Those who want to bestow upon Berger some sort of 40% 51% 45% nostalgic socialist sainthood might be chagrined to find

20% that, in the end, he didn’t even have steadfast convic- tions — except, it seems, racist ones of the worst kind. 2010 2011 2012 2013 2014 2015 2016 2017 2018 Mike Nichols is president of the Badger Institute and editor of ource: allu Diggings.

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sprang organically from and never really left Milwaukee. Milwaukee’s blacks ignored At the turn of the century, in a city of 150,000 Ger- mans, there were fewer than 900 African Americans in Milwaukee. In 1915, that number had increased to just 1,500. And even with an influx of workers for wartime industrial jobs, the African American population in 1920 was about 2,200. Race was neither the defining social issue nor the political force it would become decades later. Berger and the rest of the Milwaukee socialists could readily afford to ignore African Americans at little cost to their electoral success. This casual ignorance is reflected in the substantial collections of documents and personal papers of Berger’s at the Wisconsin Historical Society in Madison and the Milwaukee County Historical Society. The consideration of race is almost entirely absent, for example, in Frederick Olson’s nearly 600-page seminal study from 1952, “The Milwaukee Socialists, “He remained 1897-1941.” There are no indifferent demands for racial justice in the platforms of the turn-of- to the plight the-century Social-Demo- of the black cratic Party of Milwaukee, formed in 1897 when population.” Milwaukee Socialists joined – Sally Miller, with the labor movement. Berger biographer The overwhelming pre- dominance of Germans and their predisposal to socialist and unionist ideas made the rise of Berger and his party not only possible but inevi- table. Membership in the Socialist Party nationally grew from about 16,000 in 1903 to more than 118,000 a decade later. The gains during that time in Milwaukee were much more dramatic. Milwaukee’s Social-Democrats began entering local political races in 1898. While candidates promised voters public utility ownership, parks and infrastructure projects, inevitably, they turned their attention to the major-party corruption at City Hall. Berger — variously described as egomaniacal and self-effacing, ruthless and generous, loyal and unsparing, “with a deep and naive faith in himself” — orchestrated LIBRARY OF CONGRESS PHOTO FROM 1905 all of these socialist campaigns, including his own. The

28 DIGGINGS Socialism

Berger’s views on… Race he many cases of rape which occur “Twherever negroes are settled in large numbers prove, moreover, that the free contact with the whites has led to the further degeneration of the negroes, as of all other inferior races. …In the case of the negro all the savage instincts of his forefathers in Africa come to the surface.” — Victor Berger n almost a pyramidal view he spelled out “I distinctly superior and inferior racial and LIBRARY OF CONGRESS PHOTO ethnic classes. White was at the top of the color In 1920, Berger leaves the U.S. Capitol in Washington, pyramid, yellow below and black at the bottom.” D.C., after the House refused to seat him due to a legal battle over his antiwar stance. — Biographer Sally Miller father of the socialist movement in Milwaukee would Immigration export it to the rest of the nation. In the spring of 1910, Milwaukee voters elected uring the last 20 years, Slavonians, Emil Seidel, a Berger protégé and the city’s first “DItalians, Greeks, Russians and Armenians socialist alderman, the first-ever socialist mayor with a have been brought into this country by the commanding plurality. All seven aldermanic candidates million. …they have crowded out the Americans, and two civil judges on the Socialist Party ticket also Germans, Englishmen and Irishmen from the were elected. workshops, factories and mines. … And in First socialist congressman the steel mills of Pittsburg, Chicago and In the fall of 1910, Berger was elected to the U.S. House Milwaukee, where 30 years ago the so-called of Representatives. princes of labor used to get from $10 to $15 a The work of the socialists who cleaned up rampant day, the modern white coolies get $1.75 for corruption in Milwaukee in the early 1900s was impres- 12 hours a day, seven days in the week.” sive, although their sometimes extreme budget-conscious- — Berger, in a 1911 address to Congress ness would be more recognizable in today’s Republicans than Democrats. Berger’s two-year term in Washington, D.C., was Women’s suffrage another matter. ast numbers of women are still under He was praised for demanding and getting a federal “Vthe domination of reactionary priests and investigation of a crackdown on striking woolen mill ministers with regard to social and political workers in 1912 in Lawrence, Massachusetts. He also was matters and would vote against Socialism if assigned to a committee to oversee affairs in the District they had the chance.” of Columbia. There, he introduced nothing that might have aided — Berger, in a correspondence while in Congress the large African American population in D.C., Miller

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wrote. “He remained indifferent to the plight of the black that would come to despise opposition to it. population.” “Berger’s momentous blunder led to the party’s complete And when given his first opportunity to address the alienation from the American public and to its own political House on June 14, 1911, Berger used the issue of tariffs to failure,” Miller wrote. launch an attack on the immigration of Armenians, The socialist demise was hurried along by the wartime Italians, Russians and Slavs, “modern white coolies” overreach of the federal Committee on Public Informa- whose presence in America tion, which had been created to threatened the jobs of the settled drum up support and stamp out working class from the previous opposition to entering the war. German and British immigrant The Espionage Act of 1917 and waves (Pages 2025-30 in the the Sedition Act of 1918 fol- Congressional Record). lowed, giving the government the Against the advice of his fellow authority to censor and punish socialists that year, Berger warned anyone thought to pose a threat to Congress against women’s voting national security. rights. Women, he said, “are not as Socialist editors, including favorable to Socialism as men are. Berger, lost their second-class Vast numbers of women are still mailing privileges, crippling under the domination of reaction- their ability to make a living ary priests and ministers with re- through their publications. Next, gard to social and political matters he and four others were charged and would vote against Socialism with conspiracy to violate the if they had the chance.” Espionage Act, were convicted Berger lasted just one term. He and sentenced to 20 years in the had managed to lose touch with federal penitentiary in Leaven- his local base of support, at the worth, Kansas. same time alienating the Socialist It took until 1921 for the U.S. Party’s left wing, which disdained Supreme Court to overturn the his prostituting himself in electoral convictions. “Crucifixion had cost politics. him the promise he had seen in the party, the paper and the country,” Berger’s war opposition In this undated photo, Berger (far right) Miller wrote. Shorthand histories say World meets with Emil Seidel (second from The remaining left-wing mem- War I killed the Socialist Party in left), Milwaukee’s first socialist mayor, bers made official their leaving and Progressive reformer Frederic C. the United States. Party member- Berger behind by voting at their Howe (second from right). ship, however, had been dropping 1919 convention to leave the for three years after hitting its party themselves, splitting into WISCONSIN HISTORICAL SOCIETY PHOTO 1912 high and actually ticked up a two competing communist par- bit and flattened out as America’s involvement in the war ties. Socialist membership in 1920 was less than 27,000, became a fait accompli. about the same as it was in 1906. Only in Milwaukee could a socialist — particularly In Milwaukee, Daniel Hoan would continue as an enor- one opposed to the war — get re-elected to Congress. mously popular mayor for 26 years, the longest tenure in For the first and last time in his political career, Berger the city’s history until Henry Maier served 28 years from chose to stand outside of the system, arguing that America 1960 to 1988. Socialist Frank Zeidler would serve 12 suc- had little to gain and much to lose by going to war. His cessful years in between. position was the opposite of European socialists eager to Those mayors quietly had adopted the same inclusionary exploit the chaos and misery of war and an American public positions on civil rights, suffrage and immigration as the

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LIBRARY OF CONGRESS PHOTO In this 1924 photo, Berger (left) stands with Bertha Hale White, executive secretary of the Socialist Party of America, and Eugene V. Debs, leader of the party’s left wing. ragged remainder of the Socialist left. women’s rights. Although Milwaukee voters sent Berger back to In his paean to Berger, Dreier mentions that there once Washington for four terms between 1918 and 1929, he was a Victor Berger Elementary School in Milwaukee. essentially was done with national Socialist politics. He It was slated in the fall of 1991 to become one of the first acknowledged the rise of Wisconsin’s Progressives by per- two immersion schools exclusively for Milwaukee’s suading Socialists at the very least not to oppose Robert M. African American children, according to the Christian La Follette’s last U.S. Senate campaign in 1922. Berger’s Science Monitor. hope for a Socialist coalition with the Progressives in A year later, the name of the school, at 3275 N. 3rd St., Wisconsin never came to pass. was changed to Dr. Martin Luther King Jr. Elementary Berger’s death at age 69, a couple weeks after his street- School, as it is to this day. car accident, put a coda on his quirky brand of socialism. Whether the name Victor Berger or what he stood for In the April 2019 edition of American History maga- had anything to do with the change has, like many of the zine, noted journalist and historian Richard Brookhiser essential and disturbing facts of who he really was, been singles out Berger as the most successful of all of the so- lost to history. cialists, reformers and radicals of his time. And like most Mark Lisheron is a freelance writer in Austin, Texas. He spent 30 years of the modern accounts, there is no mention of Berger’s as a reporter for newspapers, including 14 for The Milwaukee Journal virulent racism or opposition to new immigration or basic and the Milwaukee Journal Sentinel.

31 Courage as a Ryan Berg is a Latin America research fellow at the American modern Enterprise Institute in Washington, D.C. Born and raised in Wisconsin, Berg virtue focuses his research on topics ranging By Ryan Berg from political philosophy to trans- any authors have lamented a “crisis of national organized M civility” and “moral panic” in our political crime in the Western environment. The demotion of civility as a Hemisphere. This virtue by President Donald Trump has been taken to heart and reciprocated by his political essay was adapted opponents to burnish their credentials as part of from “Can Courage “the resistance.” be a Modern Virtue?: While both approaches are deplorable, the Seeking Insight in problem with efforts to tamp down on putative Tocqueville, Mill and incivility is that its prosecution often transforms into outright persecution. In other words, dis- Arendt,” Berg’s 2018 agreements over an idea or manner of expression thesis submitted for can descend quickly into suppression, and what a Ph.D. in Politics at is essentially a defensive mechanism occasion- Oxford University. ally can evolve into an offensive weapon. The consequences are well-known by those observing or frequenting the political arena: the demand for safe spaces, trigger warnings and political correctness that represent ideational clo- sure; the concepts of “implicit bias” and “micro- aggressions,” which advance the idea that small comments during a contentious exchange are

32 DIGGINGS Guest Opinion Rather than demand safe spaces Courage and PC, exhibit mental toughness and focus on how to disagree better as a so catastrophic to one’s being that the offended A new kind must withdraw in the name of personal safety; of courage and the “no-platforming” of speakers whose The ancient virtue ideas are judged to be dangerous and unworthy of courage is the one modern of our contemplation before they are even heard. most closely associ- While some have deemed this crisis to be ated with assessing unprecedented in its scope, we have been here and overcoming threats. before. After all, the human tendency to re- Obviously, threats can take treat into enclaves of like-minded groups and many forms, usually cor- virtue to view the “other” as the enemy, even within responding to different types environments whose explicit purpose is intense of courage: martial courage to dialogue and philosophical inquiry (e.g., the overcome a bodily threat in battle, university), is nothing novel. political courage to overcome the threat What may be novel, however, are the phe- to self-interest when seeking the com- nomena — mostly social media and the rise of mon good (res publica) and moral ersatz “digital communities” — exacerbating courage to overcome the classic these trends. moral predicament, for example. As free societies have seen the founda- Yet, what we require is a more tions for amicable but honest disagreement run-of-the-mill kind of cour- slip away, the necessity to cultivate a kind age — a type of quotidian of mental toughness seems even more im- courage for the daily grind perative. of political discussions, al- Mental toughness would allow us to maintain lowing us to operate and the space within which we could have pro- flourish within diverse ductive discussions and conduct the business political communities. of politics without devolving into screaming Put a different way, matches and ad hominem attacks. what our society As the great political philosopher John Stuart is lacking is not Mill says, in order to have productive exchang- the same virtue es, it is important that we recognize the limita- that propelled the tions of our individual perspectives and treat Greatest Genera- others as true interlocutors — perhaps even as tion to storm the our worthy educators. beaches of Nor- How might we go about cultivating this kind mandy, somehow of mental toughness and epistemic humility? plucked from its In a word: courage. ancient birth

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and inserted into the modern context, but an altogether new polar opposite: orthodoxies and dogmas. Modern courage application of courage. combats the desire for ontological security at all costs and Modern courage and the mental toughness it gives rise to impels us to trust our fellow citizens to use their liberty re- are the linchpins to remaining in the arena against those we sponsibly, rather than licensing it only on certain conditions. find uncivil — and perhaps even beyond the pale. Courage The practice of courage, then, ensures that we exhibit helps us during unpleasant exchanges and prohibits our re- some measure of tolerance toward the ideas of others, treat from the public square where we practice politics and sympathize with life projects and commitments not our own encounter our fellow citizens in their full diversity. and internalize value conflict and value pluralism. Courage While at first glance, modern courage might appear to be helps us remain comfortable in the value of our life projects nothing more than cohabitation with different people, like and withstand the criticism of them by others or, conversely, its ancient predecessor, it actually is quite demanding. After to admit that our beliefs and projects are not as persuasive all, it sustains us in open disagreement and even occasional as others’ are upon greater reflection and consideration. contempt for our opponents, believing that this is a stronger Demonstrating tolerance in a consistent manner is far foundation for a free society. more demanding than repression. In the Regrettably, we have entered a time when Demonstrating words of Spanish philosopher José Ortega y political opinions, especially, are considered Gasset in “The Revolt of the Masses,” toler- by many to be an important part of their tolerance in a ance is the “determination to live with an identity that is beyond rational scrutiny. consistent enemy, and even more, with a weak enemy.” In Francis Fukuyama’s latest book, “Iden- While the tactics of some groups indi- tity,” he laments that the universal recogni- manner is far cate that we have forgotten the lesson, real tion brought about by the advent of modern more demanding change in a free society ought to come from democracy has been replaced by narrower persuasion and robust speech practices, not and more tribal forms of recognition — na- than repression. violence or the abrogation of civil norms. tion, ethnicity, gender — that have colo- To be sure, persuasion seems out of nized our politics. Cherished beliefs form reach in many political exchanges. While such a part of our identities that disproving it is possible that we have lost the ability to them can leave us anchorless and filled with angst. persuade, it appears more likely that persuasion is not the The internet exacerbates our tendency to avoid an objective of many political discussions at all. Rather, politi- exchange aimed at critiquing and to silo in communi- cal exchange has become a vehicle to signal one’s moral ties of like-minded individuals. In general, the range of purity and for emotional venting. ideas to which we are routinely exposed — and our ability We recognize this as the familiar speech patterns of those to countenance them — is winnowing. who participate in the moral outrage machine. But we cannot expect progress in the way John Stuart Mill meant Only in modernity can we understand such phenomena as it — the betterment of our moral condition, as opposed to the Dunning-Kruger Effect, which holds that the less skilled cosmetic societal changes — if we are unwilling to speak to and competent individuals are, the higher their level of one another and participate in a vigorous exchange of ideas. confidence that they are good at what they do. The modern need for courage, therefore, does not require These trends suggest that we are practicing something the reinvigoration of ancient heroism and resignation to different from courage in modern politics. But there are all of its attendant ills. Instead, modern forms of courage many ways the practice of courage can enhance our find their greatest relevance not in physical conflict on the political experience. battlefield but in the context of persuasive and intense Tolerance and persuasion speech exchanges. Among other things, one of the most important aspects We must thicken our skin in the face of criticisms from of courage is that it provides us the ability to live with our fellow citizens in an era when the tools at our disposal uncertainty — i.e., that reassurance ought to come not from make it all too easy to retreat to our corner of kindred spir- the size of our tribe but in the form of political possibility. its. Rather than finding a way to disagree less, we ought to In other words, modern courage inclines citizens toward focus on how to disagree better through the practice the possibilities of politics and dialogue and away from its of courage.

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“Absolute integrity” and “Make ON THE a difference” are featured on a FRONTLINES themed wall at MLG Capital in Brookfield, led by Mike Mooney. by Marilyn Krause

JEFFREY PHELPS PHOTO On his own terms Detours, obstacles and o those who knew him when, J. Michael Mooney’s prospects after deals gone bad didn’t deter Thigh school were not exactly promising. Mike Mooney, chairman He hauled garbage after his college football scholarship evaporated. A walk-on spot the of leading commercial real next fall fell through when he got sick before estate firm MLG Capital the season began. After stints on a pig farm

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In 1949, Mike, 7, and his beloved uncle, Dan O’Connell, display their day’s catch. Mike spent 11 summers up north help- ing his uncle restore and run a resort.

MOONEY FAMILY PHOTOS

and as an ironworker, he attended the University of Wiscon- to succeed on his own terms. sin-Milwaukee but left without a degree. A real estate juggernaut So how did a guy self-described as “not a great student” MLG, a leading commercial real estate investment firm go on to lead one of the nation’s top commercial real estate that also comprises management and development, is the suc- companies? cessor to multiple companies and partnerships over 33-plus The answer lies far back into his childhood. years, including the original Mooney When 7-year-old Mike Mooney was sent to northern viewed LeSage & Associates Ltd. Wisconsin one summer as company for a beloved uncle “I (real estate) Since its founding in 1987, the whose young wife had died, he could not have imagined it firm has developed more than 7,000 was the first of 11 summers he would spend helping that as the last acres in Wisconsin, divided equally uncle restore and run a resort — or that it would be key to bastion of the between business parks and resi- identifying his inner strengths and life goals. free-enterprise dential subdivisions. Its 20 business But that is exactly what Mooney credits for much of who parks have a tax base of about $1.5 he is and what he has accomplished. system.” billion and have generated an esti- The Mike Mooney you meet today — self-made co- — Mike Mooney mated 30,000 jobs, while the nearly founder, chairman and principal of MLG Capital — is 50 subdivisions have a tax base grounded in those summers. Schooled in people skills by his above $1 billion, according to MLG estimates. Uncle Dan, Mooney learned from every setback or triumph MLG employs more than 300, including 60-plus at its and each person he met along the way. He was determined Brookfield headquarters and about 250 in Dallas, and has

36 DIGGINGS Frontlines

investments in Wisconsin and 10 other states. Mooney, 76, often greets visitors to MLG in the Founder’s Mooney (#49) played middle linebacker, fullback and halfback at Marquette University High School Room just off the reception area and millennial-friendly em- in Milwaukee. He went on to play football at UWM. ployee lounge — sporting air hockey and ping pong. MLG bought the former Brennan’s Market on bustling Bluemound Road and relocated in July 2018 after an extensive renova- tion, including a massive bocce court and patio in the former open-air produce section. The Founder’s Room is a deliberate choice: Its north wall showcases a word cloud that describes the company, high- lighted by “absolute integrity” and “make a difference while making a living.” “This is what we stand for,” Mooney says. “This is our heart and soul.” But that’s getting ahead of the story. Rooted in family Hubert (Red) and Betty Mooney lived near Wright Street in Wauwatosa’s East Town neighborhood, in a series of ever-larger homes as their Irish Catholic family grew. Mike was the oldest among four girls and two boys. His eyes twinkle as he recalls hanging out with Red, a Most of Red’s pals were entrepreneurs, too, and they played partner at Russell Real Estate, and Red’s childhood friends, in baseball and basketball leagues after work. After games, the “Hi-Mount Rover Boys.” Mike tagged along to neighborhood taverns, where he soaked up every detail as they bantered about work and the corporate world. That left a deep impression. But an even bigger influence were those 11 summers spent with Betty’s brother, Dan O’Connell, restoring the ramshackle Shorecrest Resort on Muskellunge Lake in tiny McNaughton in Oneida County. Seven might seem a bit young to start working, but it wasn’t really about the work at first. O’Connell was a new- lywed in 1949 when his wife died from complications of polio. Mike was sent up north to keep him company. It was in McNaughton — after countless conversations under the stars, helping to expand the resort from three rundown cabins without power or plumbing to nine cabins with full amenities, attending to vacationing families and directing children’s activities — that Mooney, at age 17, defined his future. He realized he was an ideas guy, with people and social skills honed over those summers. At his core, he was an entrepreneur, a leader. But his path to success resembled a winding country road In 1955, the teenage Mooney was honing his people more than a freeway. and social skills at the Shorecrest Resort in McNaughton in Oneida County. From pig farm to ironwork Mooney graduated from Marquette University High

37 Frontlines

School in 1960 with plans vised against a real estate to attend St. Ambrose In 1971, Mooney (second from right) poses at Ireland’s career because the busi- Knappogue Castle. He spent years pursuing a $30 million College in Davenport, ness was too difficult. “I development in Ireland that never came to fruition. Iowa, on a football schol- wanted to either succeed arship. However, two or fail and take responsi- weeks before he was to bility for it — own it.” start, the school dropped An Irish detour its football program. For a time, Mooney So he went back home sold houses for his father and worked for the City but was drawn to the of Wauwatosa, hauling lucrative, less emotional garbage for a year. “I saw commercial side, where every back yard in Tosa,” he excelled. Then, in his he says. The next fall, Mooney late 20s, he took a detour. was to be a walk-on Always interested for Iowa State but was in his Irish heritage, diagnosed, incorrectly as Mooney spent three years it turned out, with ulcers. pursuing a dream on By the time he was 500 acres he acquired in cleared medically, it was Ireland, targeted to Irish- too late to join the team. Americans. Shannonside He attended classes, Village, a $30 million worked on a pig farm to development along the make ends meet and then Shannon River, was to returned home. include vacation homes Mooney worked as an for 2,500 residents and a ironworker before enroll- Pete Dye golf course. ing in 1963 at UWM, After years of as- where he finally played sembling investors and collegiate football as a navigating compli- walk-on offensive guard cated foreign banking, and middle linebacker. financing and land use He immersed himself regulations, the deal col- in campus life — from lapsed in 1972. Mooney homecoming king to student government activist, in- regrouped, took a commercial real estate job with The cluding a hand in changing the school’s mascot from a Boerke Company in Milwaukee and spent 10 years paying cardinal to its current panther. off his debt. Ultimately, he left UWM in 1965 without graduating. By 1980, he had spent years brainstorming the best “I was not a great student,” Mooney admits. “I tell ways to run a commercial real estate firm, but his ideas people I majored in extracurriculars.” often were dismissed. That was enough motivation to form He returned to ironworking, earning more than his Mooney & Associates. college graduate friends. But by 1967, the challenge was “My intent was to see if any of those ideas were feasible gone, and Mooney was ready for what would become his — or fall on my face,” he says. life’s passion: real estate. While he did well, he soon realized he did not have all “I viewed it as the last bastion of the free-enterprise the skills necessary to succeed. “I had to humble myself system,” Mooney says, revealing that his dad had ad- and take in partners.”

38 DIGGINGS Frontlines

That led to perhaps his most crucial business decision: velop Pabst Farms near Oconomowoc. And after the 2008 partnering with Phil Martin, Michael Zimmer and Pat recession hit, MLG went from 250 employees to about LeSage to establish Mooney LeSage and Associates Ltd. 60. Mooney and other principals sold personal assets and in 1987. company holdings to sustain the business. During the early years, there were notable deals: the site Making a difference search for Quad/Graphics’ Sussex plant, subdivisions and A conservative who supported many initiatives under the first of 20 business parks in southeastern Wisconsin. Gov. Scott Walker’s administration, Mooney is uncertain Expansion continued over the decades, about Wisconsin’s spreading beyond Wisconsin — thou- economy under Demo- sands of apartment units in Dallas; cratic Gov. Tony Evers development and investment companies; but is confident in what condos, office buildings and property he terms strong leader- management. ship at the Wisconsin Of course, it wasn’t all success. An Economic Develop- unusual deal in 1989 to become Miller ment Corp. Mooney Brewing’s distributor in Yugoslavia fell doesn’t hesitate to through, as did an ambitious plan to de- reach out to govern- ment officials when he 1987 believes industry re- Mooney LeSage and Associates Ltd. founded by J. Michael 2019 JEFFREY PHELPS Mooney, Phil Martin, Today, the firm specializes in small PHOTO Michael Zimmer and to mid-cap commercial real estate Pat LeSage. Firm acquisitions; with its investors has grows to 12 staff and acquired $1.5 billion in commercial associates in its first properties in 11 states; currently has year; opens Hickory 300-plus employees, 20 business 1980 Heights in Sussex, parks with a tax base of about $1.5 its first residential billion and nearly 50 subdivisions Mooney & Associates development. with a tax base over $1 billion. established. 1980 1990 2000 2010 2020

1988 1990 1992-’98 1999-2005 2003-’07 2008 2009-’11 2012-’14 2015-’18 Firm joins the New NAI MLG MLG expands Milwaukee Staff grows MLG Commercial Multifamily MLG launches MLG launches, America Network Commercial operations, Business Journal to about 250; is sold to a group and commercial two private in succession, (NAI); acquires its named to the adding business ranks MLG the acquires and of the firm’s portfolios grow, equity funds, the Fund III of first apartment Future 50 list of parks, residential largest area starts residential executives. and MLG Capital’s $30 million MLG $150 million building investment the fastest- developments commercial real development Recession hits, focus begins Private Fund I and Fund IV in Dallas; develops growing private, and acquiring estate brokerage; on coastal land resulting in staff shifting from and the $50 of $200-$250 Falls Business Park, independent apartment MLG opens offices in Virginia and cuts and reductions primarily million MLG million. its first public/ firms in buildings in Dallas; in Madison and in expands water- in holdings. development to Private Fund II. private business southeastern rebrands as NAI Tampa, Fla. front development investment. park. Wisconsin. MLG Commercial in Florida. and NAI MLG Management.

39 Frontlines

How others view him

“Mike Mooney is a giant in the industry. He often says, ‘If you’re not at the table, you’re on the menu.’ ” — Andrew Hunt, director of Marquette University’s Center for Real Estate

“He’s not afraid to put the time in to do the right thing.” — Mary Claire Lanser, former New Berlin mayor who now runs Lanser Public Affairs

“His impact on commercial real estate in Wisconsin is beyond significant.” — Jim Villa, CEO of the Wisconsin chapter of NAIOP, a national commercial real estate development association

“To be a successful real estate developer, you must be a real showman and Mike is one of the best.” — Michael Harrigan, retired chairman of municipal finance advisors

JEFFREY PHELPS PHOTO Ehlers & Associates MLG’s headquarters features a massive bocce court.

40 DIGGINGS Frontlines

MLG’s millennial-friendly employee lounge offers pool, ping pong, air hockey and pinball. JEFFREY PHELPS PHOTO forms are necessary and when he can have a positive impact. to become the nation’s No. 1 private equity commercial real “It’s all part of making a difference and giving back. estate firm. Elected officials don’t always have the background. Even When many would be long-retired, what’s driving people of good faith don’t always understand the view from Mooney? the trenches. If I helped government get out of the way … He circles back to that Founder’s Room theme. “Suc- everybody wins,” he says. cess for me is not driven by money … I keep going back to Among other roles, he spent 12 years on the Wisconsin making a difference, affecting people’s Economic Development Association (WEDA) board and is “If I helped lives,” he says. As part of that mission, a co-founder of Wisconsin’s chapter of NAIOP, a national he focuses on mentoring, often working commercial real estate development association. The chapter government with students. later established the J. Michael Mooney Award to recognize get out of Despite living with serious health extraordinary leadership in advancing economic develop- the way… conditions since the mid-1990s — ment in Wisconsin. everybody leukemia, atrial fibrillation and sleep Over 30-plus years, Mooney essentially has never apnea — Mooney hasn’t slowed down. — – looked back. Referring to projects gone bad or ones he’d wins.” He cherishes time with family, includ- like to do over, he says, “I learn from them and move on. If — Mike Mooney ing his wife, Marilyn, their children and you focus on regrets, you get mired down.” grandchildren. Mooney’s now the only founder still at MLG, the oth- To those beloved grandkids, he offers this advice, gleaned ers having moved on amicably, he says. He now is MLG’s from a lifetime of roadblocks and detours along with the chairman, with CEO Tim Wallen and five other principals triumphs: “They shouldn’t be afraid to fail. There’s more to running the firm day to day. learn from failure than from success.” MLG’s​ structure has been refined in recent years, shifting “And definitely have fun along the way.” from mostly development to mostly investment today. With about 1,000 institutional and individual investors and cur- Marilyn Krause, principal of Krause Communications, is a former rently controlling about $1.5 billion in assets, MLG’s goal is reporter and editor for the Milwaukee Journal Sentinel.

41 Culture Con

The changing landscape of retail exemplifies free enterprise at work

By Richard Esenberg particular mall (too many teenagers wilding at the Orange Julius) or store (a declining neighborhood or unappealing ave you noticed that your local store is increasingly merchandise). But the most obvious explanation is online Hlikely to be closed? I have felt the decline of bricks- shopping. and-mortar retail most acutely in the dearth of bookstores, We no longer need the mall because we carry places where I used to decompress during the lunch hour or it in our pocket. We don’t go to the store. It comes to to which I was dispatched so my wife could properly shop. our doorstep. But we all see the decline in the mausoleums that used to There is a certain cyclicality here. Sears, Roebuck and be known as shopping malls. Company began as a mail order business. Department “Ghost malls” are now sites for urban spelunking and stores and malls arose as the country urbanized, and auto- photo essays. There is even a Facebook group for “dead mobiles made us more mobile. What technology created, it mall enthusiasts.” Locally, we see malls such as Bayshore also destroys. Town Centre and the Shops of Grand Avenue desperately So it is with free enterprise. Capitalism has led to try to reinvent themselves time and again, while big retail- remarkable human flourishing but, in the midst of this pros- ers such as Ashwaubenon-based Shopko eventually give up perity, it has increasingly come under attack from both the and shut down. left and the right. The death of malls and factories and even Everyone offers their own reasons for the death of a entire industries may tell us why.

42 DIGGINGS Culture Con

Capitalism inevitably involves creative destruction. This of the disappearing middle class, contributed to a broad is not a bug; it’s a feature. Innovations such as the auto- prosperity. The effect of this conservative “fusionism” on mobile and airplane displace travel by horse and train (as the culture has been less robust but, even there, progress well as the farriers and blacksmiths and the engineers and has been made on public attitudes toward abortion and a re- porters who served them). This disruption makes us richer, invigoration of marriage among more educated Americans. but it comes, as progress inevitably must, with a cost. But the right has not routed the left, and the markets it What we have seen happen in retail is mirrored through- has championed are not perfect. The gains of “creation” out the economy. may outweigh the costs of “destruction,” but the costs are Technology (and, to a lesser degree, real. And while communities and the innovation called globalization) workers may adjust over time, we are, reduces and changes the nature of What we have seen happen as John Maynard Keynes said, “all manufacturing jobs. The digital revo- in retail is mirrored dead in the long run.” lution shutters paper mills (Wisconsin throughout the economy. It is not true that “Conservatism, lost a third of its paper mills in the past Inc.” or Republican “elites” have two decades). Towns and even regions failed to see that markets have costs. that were dependent on these changing But the outpouring of support in the industries and disappearing jobs may 2016 presidential primaries for Donald have difficulty adjusting. Some may Trump who, at the very least, stands in never adjust. uncomfortable tension with traditional This is not a new process, but it American conservatism, could be a seems that Republicans have only salutary wake-up call. It could serve as just discovered it. Fox News host a reminder that, while markets work Tucker Carlson rails against a “free- better than anything else, people must market worship.” F.H. Buckley, in his be empowered to participate in them. new book, “The Republican Workers Nevertheless, it should remain the Party,” offers a more sophisticated responsibility of American conserva- argument for (sort of) walking back tives to emphasize that our lodestar the traditional GOP commitment is liberty and that the role of the to markets. government is to help its citizens Websites such as American Great- build their lives — not to do the ness and journals such as American job itself. Affairs publish work that calls for I miss all those bookstores. I have an economic nationalism involving fond memories of Northridge Mall and greater degrees of government intru- the old and more robust Grand Avenue. But there’s no go- sion into markets and more aggressive use of the state to ing back. We can’t return, and we shouldn’t want to. protect the interests of, not to put too fine a point on it, I don’t need to detail the errors of socialism here. It is a Republican voters. This isn’t all bad, and it isn’t entirely wrong. form of nostalgia for a failed dream. But we have our own For the past 40 years, American conservatism has been, “nostalgianomics” on the right. essentially, classical liberalism tempered with social Excluding foreign products — or, for that matter, foreign conservatism. Contrary to the pessimists on the right who workers — will not make America great again. America claim that conservatives “never conserve anything” and fail is great because of its first principles: free markets, free to “win,” the Reaganite turn in the GOP has been phenome- people, free communities. nally successful both electorally and with respect to policy. As circumstances change, we apply those principles in It revived the Republican Party from the more or less different ways. But we ought never abandon them. permanent minority status it occupied from the 1930s to the Richard Esenberg is president of the Wisconsin Institute for Law & ’90s. It won the Cold War and, notwithstanding the myth Liberty.

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