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 ination 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