THE WALL STREET JOURNAL. **** Saturday/Sunday, March 7 - 8, 2020 |A
OPINION
Detroit
M
ichigan was full of
surprises in the 2016
election. Bernie Sand-
ers trailed Hillary
Clinton by more than
20 points in polls, then overtook
her to win the March Democratic
primary by 1.5 points. FiveThirty-
Eight’s Nate Silver called it “one of
the greatest polling errors in pri-
mary history.” In November Don-
ald Trump beat Mrs. Clinton by
0.23 point—the narrowest margin
in any state—and claimed Michi-
gan for the GOP for the first time
since 1988.
Mr. Sanders hopes for a similar
comeback in next Tuesday’s pri-
mary. Throughout the nomination
race, the media has deemed Mr.
Sanders and Joe Biden to be the
leaders in distinctly separate
“lanes.” Michigan shows why the
two candidates have never seen it
quite that way. To be sure, each
took time out of his celebratory
speech Tuesday evening to tar the
other as a dead end for the party.
Mr. Sanders chided his rival for
peddling “the same old kind of
politics,” and Mr. Biden faulted Mr.
Sanders’s late arrival to the Demo-
cratic Party and his promise of
“revolution.” But both are vying to
get into the lane they believe leads
through Donald Trump and into
the White House—the position of
true champion of the American
worker.
Every candidate for office
pitches his humble beginnings and
mass appeal. Messrs. Biden and
Sanders work overtime to sell the
point, invoking the support of la-
bor unions and ethnic minorities.
More than any Super Tuesday con-
test, the Michigan primary will
test who has the stronger claim.
Mr. Trump’s 2016 margin was
more than accounted for by the in-
roads he made among the state’s
labor unions, which left Mrs. Clin-
ton with 57% of the union vote,
compared with 68% for President
Obama in 2012. With similarly
close wins in Wisconsin and Penn-
sylvania, Mr. Trump staked a claim
to the broad working-class support
that has long been the pride and
succor of Democrats. Messrs.
Sanders and Biden both seek to re-
claim it this year.
Part of Mr. Sanders’s strategy
has been to win over prominent
members of ethnic minority com-
munities, helping to build the
“movement of black, white, Latino,
Native American and Asian-Ameri-
can” voters he invoked Tuesday
night. A March 2 event in Detroit
titled “Faith Leaders for Bernie”
was an opportunity to discuss
campaign messaging and strategy
in a city where black churches
hold strong political sway.
The afternoon following the
event, Pastor Horace Sheffield III
tells me he appreciates the way
Mr. Sanders stands with “a whole
other America that public policy
doesn’t seek to lift.” It’s said that
a rising tide lifts all boats, but it’s
easy to doubt that walking around
the West Side neighborhood that
surrounds Mr. Sheffield’s New Des-
tiny Christian Fellowship, where
collapsed roofs are common and
plywood fills more windows than
glass.
Mr. Sheffield, 65, got his politics
in part from his father, who in the
1950s worked alongside the social-
ist civil-rights leader A. Philip
Randolph at the left-wing Negro
American Labor Council. But he
concedes that when Mr. Sanders
describes a “political revolution to
transform our country,” few blacks
hear it as a continuation of the
civil-rights struggle. “One of the
reasons Martin Luther King caught
on more than Malcolm X is that
blacks have a passive-resistance
approach to politics,” he says.
“Blacks are more conservative
than people give them credit for.”
Mr. Sanders claims only 16% of
black support in Michigan, com-
pared with 41% for Mr. Biden, ac-
cording to a Glengariff Group poll
released Tuesday. “What has Ber-
nie ever done for them?” asks
Keith Williams, a former Wayne
County commissioner and founder
of a youth sports center 10 min-
utes west of New Destiny along
the interstate.
Mr. Williams, 64, is chairman
of the Michigan Democratic Party
Black Caucus, whose endorsement
Mr. Biden cited in a CBS News in-
terview Feb. 10, the eve of his
fifth-place finish in New Hamp-
shire. “Who was able to do the
auto bailout?” Mr. Williams says.
“Obama-Biden.” He credits Mr. Bi-
den as more than a sidekick.
“People need to acknowledge that
Barack couldn’t have won unless
Joe was with him. God made the
perfect pair.”
Mr. Biden earned the esteem of
many Michiganders when he
helped negotiate federal loans to
General Motors and Chrysler in
the wake of the 2008 financial cri-
sis—a feat he recalled often on the
2012 campaign trail with the line
“bin Laden is dead and General
Motors is alive!”
“His dad was the manager of a
car dealership,” Detroit Mayor
Mike Duggan says, “so you don’t
have to explain cars to Joe Biden.”
After Mr. Duggan took office in
2014, “Joe returned to the city ev-
ery three or four months,” includ-
ing an impromptu trip with the
mayor to an East Side resident’s
Labor Day barbecue. “He was
enormously supportive of Michi-
gan when the state was down, and
I think the state has a very per-
sonal connection to him.”
T
oday, the state’s auto work-
ers aren’t necessarily secure.
The United Auto Workers
went on strike at all GM facilities
for 40 days last fall demanding
pay and benefit raises, all while
the union’s President Gary Jones
was being investigated for embez-
zlement. (On Thursday federal
prosecutors unsealed charges
against Mr. Jones, whom they ac-
cuse of stealing $1 million in
worker dues.) The moment is par-
ticularly difficult for workers
around Motor City, where GM last
week shut down its Detroit/Ham-
tramck assembly plant, forcing
production employees to commute
to more-distant plants until the
“D-Ham” retooling is complete in
summer 2021.
Last Tuesday Mr. Sanders ac-
cused Mr. Biden of hurting workers
through the years by voting for
“disastrous trade agreements”—an
attack he’ll likely repeat at emer-
gency rallies this weekend in De-
troit, Dearborn, Grand Rapids and
Ann Arbor. Yet many in the state
still remember the auto bailout as
a pivotal moment and Mr. Biden as
a friend of the industry. “In some
ways you’re always picking the
lesser of two evils,” says HVAC re-
pairman James Philip, 42. “But I’d
have to go with Biden,” he con-
cludes, reflecting in the shuttered
plant’s parking lot. “I mean, from
my viewpoint I’ve gotta think
about that experience under
Obama.”
Though the auto industry still
holds the most political influence
and sentimental power, the share
of Michiganders working in manu-
facturing is much smaller than
during the long postwar heyday, as
production work has diminished
throughout the country. In the De-
troit area, have been recovered in
part through the growth of ser-
vices that has accompanied the re-
cent revival of the downtown busi-
ness district. Unite HERE Local 24
represents more than 7,000 em-
ployees in the region’s hotels, casi-
nos, restaurants and arenas. It offi-
cially endorsed Mr. Biden
Wednesday.
“We know Biden. Our union
knows Biden,” says Local 24 Presi-
dent Nia Winston, whose senior
colleagues praise Mr. Biden’s sup-
port for the union’s strikes over
decades. Ms. Winston reserves her
strongest ire for Mr. Trump,
whose policies and rhetoric on im-
migration she says offend her
members’ values. But she bluntly
criticizes Mr. Sanders’s mission to
impose Medicare for All. “We
went on strike for better health
care in 2018. We fought for it in
our collective-bargaining agree-
ments,” she says. “We do not want
policies that will threaten what
we’ve achieved.”
While Midwestern Democrats
may condemn plant offshoring or
seek more government support in
health care, most working-class
people here, regardless of race,
want economic security—not revo-
lution. Mayor Duggan puts it sim-
ply: “Successful Democrats in
Michigan do not attack business.”
He says Gov. Gretchen Whtimer,
elected in 2018, “has balanced the
interests of the business commu-
nity” and recognizes that “if you
drive business out, the unemploy-
ment rate is very high.” Mr. Dug-
gan believes Detroit residents in
particular have seen the benefit of
working with business, and that
they will back a candidate on
Tuesday who is capable of the
same.
A
Feb. 23 Elections Research
Center poll showed Mr. Sand-
ers leading Michigan by 9
points after his early primary
wins, but Mr. Biden has ridden the
surge that began in South Carolina
to a 7-point lead in Tuesday’s
Glengariff poll. “Biden is actually
leading equally both in outstate
and metro Detroit,” pollster Rich-
ard Czuba told the Detroit News.
His growing appeal crosses racial
lines.
A fundamental gap between the
two candidate’s bases may be the
sense of having a stake in the
economy. Many despondent work-
ers, minorities who perceive wide-
spread racial oppression, and ide-
alistic young people back Mr.
Sanders. But in most of the red
and swing states that voted on Su-
per Tuesday, Mr. Biden won over
enough blacks, Hispanics, working-
class whites and stability-seeking
moderates to win pluralities.
It might be fair to say Mr. Sand-
ers is the choice of voters who
prize worker solidarity so much
that they embrace policies that
would jeopardize workers’ liveli-
hoods in the long run. Mr. Biden’s
success in Michigan and beyond
depends on ensuring that voters
who saw the markets rise after his
Super Tuesday victory aren’t hood-
winked into thinking those gains
benefit only the wealthy. If the
polls are right, working-class Dem-
ocrats are taking a practical ap-
proach to their economic interests.
Mr. Ukueberuwa is an assistant
editorial features editor at the
Journal.
Why Biden Has the Edge in Michigan
CARLOS OSORIO/ASSOCIATED PRESS
In a state Sanders won
four years ago, working-
class voters seem to take
a practical approach to
their economic interests.
By Mene Ukueberuwa
Joe Biden campaigns in Michigan last August.
A
once-renowned Kentucky car-
diologist is being released
from federal prison after an
appeals court threw out his health-
care fraud conviction because the
government withheld critical evi-
dence at his trial.
Richard Paulus was convicted in
2016 of health-care fraud and false
statements. After some back-and-
forth appeals, he reported to prison
last June. He wasn’t supposed to be
released until September 2023, by
which time he would have been 76.
But on Thursday the Sixth U.S. Cir-
cuit Court of Appeals vacated his
conviction. This decision should
bring needed scrutiny to a pattern of
dubious criminal prosecutions of
doctors that lawyers have come to
call “stent cases.”
A Court Corrects a Medical Injustice
The way these cases work is simple:
The government has questions about
a cardiologist and shows a sample of
his angiograms—chosen by the gov-
ernment—to a government-hired doc-
tor. The government doctor reviews
the angiograms and tells investigators
any time he thinks the doctor gave the
patient an unnecessary stent.
The government claimed that Dr.
Paulus did this “frequently, repeti-
tive[ly], daily.” A trio of government
doctors said that between 21% and
50% of the cases they reviewed
showed unnecessary stents. The gov-
ernment called this a “pattern” that
proved Dr. Paulus was a criminal.
But government doctors are no
more reliable than private ones. A
difference of opinion on whether or
not a stent was necessary is often,
well, just that. As one of the judges
hearing Dr. Paulus’s appeal remarked,
the rate at which government doctors
differed with Dr. Paulus wasn’t an er-
ror rate but a “disagreement in medi-
cal judgment rate.”
What’s more, the government
failed to disclose evidence to Dr. Pau-
lus’s lawyers that showed the dis-
agreement rate was in fact much
lower. It wasn’t 50% or even 21% but,
according to an expert hired by Dr.
Paulus’s hospital, just 7%.
The government argued during
the appeal that its failure to disclose
was harmless because a 7% disagree-
ment rate is still too high. It told the
court, as it has in all previous stent
cases, that where one cardiologist
thinks a blockage blocks less than
30% of an artery and another thinks
it’s above 70%, “somebody is right
and somebody is wrong.” The gov-
ernment claimed such disagreements
“should be zero or close to zero.” So,
the theory goes, where a trained car-
diologist like Dr. Paulus gets it wrong
by calling a 30%-or-smaller blockage
greater than 70% enough times, he
must be a criminal.
But the appellate court rejected
the government’s argument and an-
nounced that Dr. Paulus had a right
to know and let the jury decide
whether a 7% disagreement rate is
enough to diagnose him as a crimi-
nal. Indeed, the appellate court won-
dered itself whether it would have
rejected Dr. Paulus’s prior appeal had
it known this information. How,
when the government had known
this all along, had Dr. Paulus just
been forced to spend nine months in
prison?
And so Dr. Paulus is, for the third
time since the government targeted
him nearly a decade ago, an innocent
man in the eyes of the law. If the
government elects to retry him, he
now has the evidence he needs to
show that instead of being a crimi-
nal, at worst he may have made, in
the court’s words, “occasional mis-
takes or had occasional differences
of opinion.” As doctors, like all peo-
ple, sometimes do.
Messrs. Clark and George are trial
lawyers at Baker Botts in Washing-
ton. They have defended and advised
health-care providers in criminal and
civil investigations by the federal
government. Mr. George is also a
member of the Mid-Atlantic Inno-
cence Project’s board.
By Kyle Clark
And Andrew George
Cardiologist Richard
Paulus went to prison
because another doctor
disagreed with his opinion.
Spendthrift Illinois Races Toward Default
For 13 years, Puerto
Rico has been in a
man-made reces-
sion aggravated by
natural disasters.
In 2017 the island
territory asked a
federal court for
bankruptcy protec-
tion, but it’s still
grappling with $
billion in debt.
Puerto Rico’s fiscal fiasco offers a
glimpse of what the future could
hold for Illinois if it doesn’t deal
with its own self-imposed eco-
nomic disaster.
Long the economic hub of the
Midwest, Illinois has lost more than
850,000 residents to other states
during the past decade. The state
has been shrinking for six consecu-
tive years and suffered the largest
raw population decline of any state
in the 2010s. Puerto Rico has been
plagued by people problems too,
shedding population in nine of the
past 10 years.
Like Puerto Rico, Illinois is
drowning in a sea of red ink. Grow-
ing government debt and a crush-
ing tax burden are depressing eco-
nomic growth. State spending is up,
but personal-income growth is lag-
ging. Since 2000, Illinois’s per cap-
ita personal income growth has
been 21% lower than the national
average. Home prices are growing
at the second-slowest pace in the
nation, at only 2% compared with
5.1% on average nationwide. With
speculation that Illinois could be
the first state to go into default,
ratings firms are paying attention.
Illinois’s credit rating is one notch
above junk.
Shortly before Puerto Rico’s
bankruptcy filing, The Wall Street
Journal described “an exodus of
workers, retirees and entire fami-
lies” fleeing a deepening economic
crisis. “For years, Puerto Rico bor-
rowed more—and incurred higher
fixed costs—to buy time to stave
off deeper economic overhauls,” ac-
cording to the Journal report.
Creditors and analysts said Puerto
Rico’s problems were aggravated by
“government overspending and
promises to unions for employee
benefits that officials knew they
wouldn’t have the resources to
properly fund.”
The description also fits Illinois,
but it doesn’t have to. Illinois’s
public pension payments already
consume nearly a third of the state
budget, yet the unfunded liabil-
ity—which the state currently pegs
at $137 billion, though others put
the figure much higher—continues
to rise. Local government services
are also being squeezed by pen-
sions, contributing to rising prop-
erty taxes that are the second-
highest in the nation. Since 2000,
Illinois has increased pension
spending by more than 500% but
cut by a third services that help
students pay for college, protect
children from abuse, aid the poor,
and fight disease.
Moderate reforms could stabilize
Illinois’s five state-run and hundreds
of local pension funds, but politi-
cians have consistently refused to
consider them, preferring instead to
increase taxes steadily. Illinois has a
culture of trying—and failing—to
tax its way out of its problems. In
2011 then-Gov. Pat Quinn approved
a temporary tax hike aimed at mak-
ing a dent in the state’s $8 billion in
unpaid bills. By 2014, Illinois still
had a $6.6 billion bill backlog, and
lawmakers were calling for families
and businesses to give up more
money. Another permanent income-
tax increase came in 2017, but again
more taxes failed to solve Illinois’s
problems.
The problems, in fact, got worse.
In his freshman year, Gov. J.B.
Pritzker signed into law 20 new
taxes and fees totaling nearly $4.
billion, including a doubling of the
gasoline tax. Now Mr. Pritzker
wants a progressive income tax he
claims willreallysolve the issue.
He’s asking voters to give him a
green light on Nov. 3.
Mr. Pritzker is wrong to tell vot-
ers that 97% of them “will not see
an increase.” Because when voters
decide whether to push forward his
progressive tax, they won’t get to
vote on rates. As the Illinois Policy
Institute reported, solving the pen-
sion issue would require a progres-
sive income-tax hike of $10 billion.
Mr. Pritzker’s current plan to tax
$3.7 billion out of the state econ-
omy dedicates only $200 million to
pensions.
There is hope for the people of
Illinois. State pensions can be fully
funded, Illinois taxpayers can save
$50 billion over 25 years, and dol-
lars can be freed to support their
eroding public services. Policy mak-
ers can finally shrink Illinois’s pen-
sion liability by reducing the main
driver of its growth: the cost-of-liv-
ing adjustment, or COLA. Currently,
the COLA doesn’t reflect any actual
cost-of-living increase, since it isn’t
pegged to inflation. By simply re-
placing the existing guaranteed 3%
compounding postretirement raise
with a true COLA pegged to infla-
tion, among other modest changes,
Illinois can save $2.4 billion in the
first year alone. No current retiree
would see a decrease in his pension
check. Current workers would pre-
serve their core benefit.
Failed fiscal policy has left the
Land of Lincoln just a few steps
ahead of Puerto Rico, but all isn’t
lost. Just as Illinois’s financial di-
saster was man-made, so too can
be its recovery.
Mr. Divounguy is chief economist
at the Illinois Policy Institute.
By trying to tax its way
out of fiscal disaster, the
state makes matters worse.
There’s a simple solution.
CROSS
COUNTRY
By Orphe
Divounguy