(Source: Marc Kovac @ Ohio Capital Blog)

There are so many factual errors in Kasich’s statements in this press conference you wonder if Gov. Kasich has ever studied the virtue of honesty in that Bible study he so loved to talk about during the campaign.

Kasich, the guy who talked about “breaking the teachers’ unions back” and who began the day bragging to his political supporters in a campaign e-mail about defeating the unions claims he doesn’t view anyone as opponents… Ted Strickland and his other opponents, I bet, would beg to differ.

Kasich has made this point a number of times without anyone ever calling him on it: there’s a big reason that the workers at Nationwide and The Limited can’t negotiate for a pension and other benefits like public union workers presently can, but it has little to do with the fact that they’re private sector companies.  It’s because those are non-union companies.  And this is what should bother Ohioans about SB 5.  When Kasich and his proponents talk about “leveling” the playing field so that public sector union employees get what “private sector” employees get, they’re not talking about what private sector union employees get, but what private sector employees who have no right to collective bargain get. 

What is the point in calling something “collective bargaining” if the system is, by design, intended to ensure employees are unable to do any better than they’d do without collective bargaining?  Gov. Kasich has no answer.

Finally, a reporter asks Kasich why instead of pulling the public employees down, why isn’t he doing something to pull these private sector up instead.   Kasich, yet again, objects to the premise of the question even though he has repeatedly said that SB 5 is about driving back benefits.

The second major flaw with Kasich’s public/private sector analogy is it ignores a fundamental difference between the two systems.  Private companies don’t have balanced budget amendments.   A CEO who balances the budget year after year will soon be out of a job.  Corporations shoot for imbalanced budgets in which the company takes what it calls “profits,” but what in government budget speak is consider “surpluses.”  Therefore, companies have a vested interest in pushing employee benefits below that which the company can afford. 

Nothing reflects this more than General Electric, a corporation that earned $5 billion in profits (in the United States alone) last year, but paid no federal corporate taxes, who is now reportedly planning on asking its union employees in Ohio for concessions to drive their costs down.  Here’s  a company that does allow its employees to collective bargain, does provide them with a pension, but is claiming poverty in union negotiations about that pension despite $14.2 BILLION in profits last year.  G.E. is where Kasich’s theory of private sector employee benefits breaks down.

Kasich talks as if for-profit corporations are magnanimous, paternalistic entities that set their benefits at levels that just keep them from filing bankruptcy.  It’s another intellectually dishonest proposition that he rests his entire case for SB 5 on. Corporations no longer operate under the assumption that American industrialist Henry Ford did—that a business had an interest in providing a standard of living for its employees that made the products the workers produced affordable to them.  Executive compensation packages drive companies to lower costs artificially and in many ways, counterproductively, to make ledger seats look better and make their stock options profitable.  It is no secret that every major corporate scandal, whether it was Enron or Kasich’s former Lehman Brothers, had at a center of the downfall not corporate greed, but corporate executive compensation-inspired greed.  And that greed always comes at the expense of regular employee benefits.

Kasich, sensing the need to throw in some corporate population, claims that his Administration has “clawed back” nearly $1 million from businesses who failed to meet their promised job creation/retention numbers in return from Ohio Department of Development aid.  But the Cleveland Plain Dealer has already found this statement to be misleading (if not outright false.)  The reality is that the Administration has not reported received a single penny back in their clawbacks, as many of the companies no longer exist or already in bankruptcy.  In other words, most of that money is uncollectable.

Then, there’s the  problem with Kasich’s statements on equipment for safety forces.  The House SPECIFICALLY amended the bill to make it possible for them to negotiate because the Senate bill did not provide for it.  Niehaus can get all hot and bothered all he wants.  The bill his body initially passed didn’t provide for it.  That’s why the House had to amend it.

Kasich is asked during the press conference about Ralph Nader’s call for Kasich to do something about corporate welfare in Ohio.  After all, Kasich during the campaign and in his State of the State, loved to mention Kasich’s limited work with Nader in Congress on corporate welfare.  But Kasich defends his budget that does nothing about Ohio’s outdated tax expenditures that provide tax breaks with virtually no economic benefit by claiming that Ohio’s business community has been “under assault” during mostly GOP rule.  Ohio loses $7 billion a year in tax expenditures.  Some, like the spousal and dependant income tax deduction or the exclusion of Social Security income from State taxation are too politically popular to be expected to ever be eliminated, nor should they.

However, does Ohio’s economic health rely on the continuation of a sales tax break on “fractionally” owned aircraft?  Or the total exemption from taxation of selling “qualified call centers”?  On top of telemarketers getting a tax break, Ohio gives tax breaks for retail businesses’ catalogues and “printing advertising materials” (i.e.-junk mail).  We even give tax breaks for equipment used for “preparing eggs for sale.” 

To suggest, as Kasich’s budget does, that there could not be some savings to be had in reforming exemptions that have gone largely untouched longer than Ohio’s collective bargaining law is to hide the real reason: Kasich is more scared about what conservative non-Ohioans like Grover Norquist and an ironically named entity called Americans for Tax Reform would do if he did something that violated their silly little ideological pledge by tinkering with wasteful corporate tax giveaways than Ohioans who can be duped instead into believing Kasich’s cuts are the only option we ever really had.

In the end, the best news for organized labor is that this seems to be the best arguments, so far, Governor Kasich has to support his bill, which has become so toxic he may be the public face for the pro-SB 5 by default.  Even Kasich allies like the Ohio Chamber of Commerce has told the Cleveland Plain Dealer that while they support SB 5 and will contribute to the campaign to oppose the effort to repeal it via referendum, it is not the chamber’s “top priority.”

"It’s not our baby, so to speak," [Ohio Chamber of Commerce President Andrew]  Doehrel said. "It’s not our issue to lead the charge on."

With arguments like these along with a 30% approval rating, the biggest enemy to SB 5’s mortality may not be organized labor, but Governor Kasich himself.

captain30Captain Thirty Percent Job Approval to the rescue!  Here to save SB 5 from the voters of Ohio!

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  • Random Thoughts

    “Nobody’s salary is being cut…”

    Did he seriously say that?? He needed to be at our union meeting a few weeks ago when we agreed to a salary and step freeze, cutting supplemental salaries and taking days away from support staff. We’re having another one on Monday to discuss and vote on further cuts. Not to mention his budget which guts funding for public education, and the people who will lose their jobs completely because schools can’t afford to keep them. Sounds like lots of peoples’ salaries are being cut, some by 100%.

    I wonder what color the sky is in John Kasich’s world…

  • Lacklandgd

    Excellent piece! The campaign ads which showed him talking about Lehman Bros. SHOULD have prevented his election..albeit it by a slim margin. That in and of itself should have let everyone know he was a “big business” man. And, he was one of those who got some big bonuses while with his former employer.

  • Anastasjoy

    He just inadvertently left something out. He meant to say “Nobody’s salary is being cut among my top-level staff . They all got raises — and they don’t have union.” Case proved!

  • Annekarima

    The sky is dark very dark as the storm clouds gather. Was it Snoopy or someone in that cartoon who said “it was a dark and stormy night….” Ohio is entering its “dark and stormy night”. After the storm, the wind and the rain, comes the sun. But it takes some work. Prepare.

  • buckeyekelly

    Banging the drum on his vote FOR NAFTA and Ted’s vote AGAINST NAFTA probably would have went a little further with the union folks who have a bit of buyer’s remorse.

  • buckeyekelly

    Banging the drum on his vote FOR NAFTA and Ted’s vote AGAINST NAFTA probably would have went a little further with the union folks who have a bit of buyer’s remorse.

  • ITeach

    This was hard to watch with all of the lies. I hope that Ohians can see through all of his crap and get this law repealed in November.

  • Tiredofthegames

    Although my husband is a public employee, I am not and never have been. In 2009 I was working for one of those great private corporations that is not unionized and even stated in its employee handbook that union were unnecessary and they preferred to deal directly with employees. Their method of dealing directly with employees hit my squarely between the eyes on a Friday morning when I was informed by my supervisor that, effective the following Monday (that’s right – two days later), my job classification had been reduced to part time. Throughout the corporation, approximately 300 people were taking a 50% reduction in pay; all benefits were gone, all earned time off was gone. It was all just gone. When I read comments like Louis Blessing saying “Be glad you have a job”, and Kasich touting the fantastic world of the private sector, I want to vomit. I doubt if they ever had to deal with a 50% hit to the paycheck with no advance notice.

    If they continue to have their way, the American workers will be the new Chinese sweatshop workers.

  • clambake

    When I read about those clawbacks they seemed to me to be an empty gesture. It appears that nobody is going to actually pay.
    Anyway, excellent post. The story of the myriad giveaways in the form of tax incentives, low cost loans, and grants is THE story of state and local governments. I remember at one point, years and years ago one governor stating that all state governors should work together to stop this race to the bottom. Well, nothing came of that. All you have to say is “job creation” and a tax cut is coming your way. And we end up paying in higher property taxes and new or increased fees. Why are so many willing to buy the corporate line? What is it ? Stockholm syndrome? And why should we be celebrating when we lure a business from another state. Our job gain is someone else’s job loss.

  • “Why are so many willing to buy the corporate line? What is it ? Stockholm syndrome?”

    Exactly. This is a mystery to me as well that so many people fail to understand that THEY are getting stuck with the bill for Kasich’s corporate giveaways. I keep seeing rhetoric like “we’re broke, we have to quit spending money we don’t have”….blah blah. What they can’t seem to grasp is that unless we collectively come to the conclusion that we need to drastically lower our standard of living because of these cuts, people are going to pay higher taxes to keep their basic services intact. Do these people think everyone is going agree o drop their fire and police protection to dangerous levels, get rid of libraries, degrade their local schools, have no parks or street lights, get irregular trash pickup, and drive on axle busting roads? They will either pay more to retain these things or watch their home value plummet for lack of them. Maybe by the time Kasich is gone, reality will have set in.

  • Wait until the next shoe drops and they start pushing for Ohio to become a Right to Work state. These people aren’t going to quit until Ohio has the same status as Alabama or Mississippi.

  • If they were intellectually honest and this was really about budget concerns, yes. They and their top staff would take pay CUTS not get big increases. But – again – this has nothing whatever to do with the budget. It’s a planned and coordinated attack from the right on political opponents.

  • “Do these people think everyone is going agree o drop their fire and police protection to dangerous levels, get rid of libraries, degrade their local schools, have no parks or street lights, get irregular trash pickup, and drive on axle busting roads? They will either pay more to retain these things or watch their home value plummet for lack of them”

    People want all the trappings of a socialist society, but god forbid you use that word and don’t expect them to pay for it either.

  • just_an_idiot

    I get a pension because I don’t pay in to social security. The pension is all I will have when I retire (unless I put my own money back). I don’t make what I could in the private sector, yet I have to be highly trained and proficient to be able to do my job, and live. I also don’t get “matching funds” put into my IRA. I hear some places do that in the private sector…

    I am allowed to negotiate over wages under SB5. Well, I think the proper term is I am allowed to beg and fall on the “good graces” of a local government that has typically been antagonistic during contract negotiations. It is more along the lines of, “I can put forward my requests, but they will fall on the deaf ears of politicians,” not any type of bargaining. Bargaining implies that both sides have some level of power and a compromise must be reached. That is not the case with SB5. Since the local officials with whom my “Union” negotiates will have the final say on any contract. I suppose that I am technically allowed to negotiate, but how much of a negotiation will it be when the other side knows that it holds all the power and there is absolutely nothing I can do about it. If, during contract negotiations, there is an impasse, or if the local government decides that it does not like the “Union’s” proposals and does not like what a fact finder decides would be fair, it has the final authority to choose which proposal it will accept. There is no appeal to an outside party. That is like me going to a domestic violence run and saying to a feuding boyfriend and baby’s mama, “Well, here is what I think is a good solution, but sorry ma’am, your boyfriend has the final say in how this conflict will be resolved. Would you like me to call a squad for you for the injuries you are about to sustain?” Further, should the governor or State Auditor feel that a municipality is in “financial emergency,” they may declare such a state and dispose of any collective bargaining agreements. Then the “collective bargaining” (more properly the “collective begging”) process starts over, but again, with all the power on one side.

    Mr Kasich says that salaries and pay will not be affected. If I believe that I am naively optimistic and overly trusting. I don’t really think that I am. My wife and I were trying to sell our house so that we could move closer to her family (so that when my Army unit is deployed again she can be closer to her family for support). Now I am trying to sell the house so I will not be under that mortgage when SB5 takes effect. My hourly wages may not go down (although, there is, I believe, a pretty good chance that under this bill the will), but my take home pay will be hit hard. I will not be able to put money back into my retirement account, and I would be struggling to make my mortgage payment (not that my less than 1500 sq ft house is necessarily a governor’s mansion, maybe I could move in there since Mr Kasich doesn’t seem to want to use it). So, my thanks go out to Mr Kasich for his addition of financially related stress to my normally stressful job.

    This is my biggest gripe, however. Mr Kasich, I thought, had campaigned on a platform of “smaller” government. I tend to be of that political persuasion (although as cynical as I am, I rarely if ever vote for the two major parties because I believe they are all liars out for their own power and well being, not mine or the people the represent, and am fairly proud of voting against the man who calls me an “idiot”), however, I see that Mr Kasich wants a smaller government that has more power concentrated in it, with fewer checks on that power. I know a word that describes that: Tyranny.

  • this is scary…

    I have worked in a Right To Work state. It is truly terrible. Nothing like working 12 hour shifts 5-6 days a week and not getting paid overtime or given any breaks/lunches to make an employee happy. Also, I worked in a job where I had to occasionally use my own vehicle to travel. Guess what I didn’t get? Mileage reimbursement. When I asked about getting a lunch so I could eat something while not at my desk, I was told that it wasn’t required by law and if I didn’t like it, I could quit. Ahh, the fantastic standard of living/employment in right to work states.

  • publichealthgirl

    It is so true Anna in Cbus. We want everything but we don’t want to pay for it. I also think that so many people have lost the ability to think critically and connect the dots. I.E. if we do not pay for these vital services, our world will go to pot. Nobody wants to live in the world the tea-party and the GOP is selling (except maybe the super rich, because why would they care) yet there are so many people incapable of seeing the consequences of these actions. I can only hope that this is beginning to change…

  • Guest

    Agreed Tired,
    This has been a long time coming. This is part of the inter-generational newest version of class war starting with rotten Ronnie and his “revolution”. It has been downhill from there. I am reminded of jacked up Jack Welch late of GE saying we don’t need unions. He was right, he doesn’t need unions because he has the best govt that money can buy. He and his ilk started this nonsense. Ronnie and his evil minions have and continue to carry out the orders.

    The problem is and was this country was created by and on behalf of evil rich men. Are we going to let we the people go back to we the evil rich men who own people and don’t want to pay taxes to other rich men across the Atlantic Ocean. Gee. let’s get poor men to do the fighting for us. The only thing we have is “our founding” document that actually says “We the people….”. Personally, I think the founding fathers were a bunch of liars, but that is my cynical self speaking. We the people didn’t include me and mine. The problem also was that we needed the class war in the 1930’s but that pesky WWII got in the way so FDR threw us a couple of bones. What he did was very insufficient and now evil rich people want to wreck it and go back to the bad old days of the 1600’s. Property and money first, is the real motto of the evil radical TGOP and their real constituents.

  • Guest

    Oops I forgot….everything is more expensive except for us. Now they want us to be even cheaper because they don’t respect work or the people who actually do it.

    What do they call it again when people work but don’t get paid? Certainly, that is unfair, but there is a real name and we are so good at it after 400 years in North America, ah yes, SLAVERY. Slavery comes back to America with a flag flying and someone singing Onward Christian soldiers…..their problem is we have had a takse of the good life.

    We won’t go back and we can’t go back.

  • publichealthgirl

    Well said…

  • clambake

    I mean, I vote for every levy but I can see myself getting weary of them at some point if this becomes the ONLY way to raise revenue for needed services (well, that and fees which you have no say in). The continual reduction in corporate tax rates, the tax giveaways, the abatements: they have to stop! Between inflation and taking on a larger and larger share of the tax burden, we’re getting squeezed. For what? Because some jobs are dangled in front of us. Last time I checked the biggest driver of real job growth is demand. If people don’t have money, well– there’s no demand.

  • clambake

    Lehman brothers had a “special relationship” with probably the worst of the worst mortgage giants– Ameriquest. Really, they were worse than Countrywide even! From the get go they were all about second mortgages (er, I mean” home equity loans”).
    And his buddy Kvamme is reciting the “it’s the Community Reinvestment Act that caused this crisis” lie. Very sophisticated analysis pal: law causes crisis thirty years after passage! What a hack.

  • Victoria

    You should not insult Superman by associating him with Kasich even though he is fictional.
    Lots of this posturing is of course simply because Kasich will lie or say anything to cover up his desire to hammer the working class to benefit the rich. But his posturing will be particularly obnoxious this month since the ALEC convention, a right wing organization which lists him as a founding member, is having their convention in Cincy April 28th.

  • Last time I checked the biggest driver of real job growth is demand. If people don’t have money– well– there’s no demand.

    Exactly. This near religious fetish of cutting taxes in the name of job creation should have us so awash in unfilled jobs that we’re begging people to move here for the work. This is more of the crazy Reaganomics that has never borne fruit and never will because it’s a flawed theory. This is strangling this country, and we need to break free of it and get back to governing with some common sense.

  • People want all the trappings of a socialist society, but god forbid you use that word and don’t expect them to pay for it either.

    That’s true. I wonder if they understand where our services come from? I read a real jaw-dropper a couple of years ago. Our county Auditor (Hamilton) wrote an article saying that he constantly gets really angry calls from people because their property taxes went up. Why? They have no clue that when they vote “yes” on a levy it will increase their property tax bill. Unbelievable.

  • clambake

    Indeed. It is some sort of religion, but I wonder if the plutocracy really uses the words “job creation” amongst themselves. We know they mean “profits”.

  • clambake

    Ronnie really got the ball rolling, but the dems have not exactly attempted to slow the momentum. It is important that we hold them accountable too.

  • clambake

    I read his latest, Griftopia. It was pretty good, but maddening. But, if you want a really comprehensive book about the housing/financial meltdown please check out Michael Hudson’s “The Monster” (the title sounds generic, but it really the name of a sales tactic written about in the book). Anyhoo– this book focuses on Ameriquest– enabled by Lehman Brothers. It is truly maddening too but really well reported and compelling as a work of true crime. I wish that it had gotten more press. The guy really did his work.
    Still, it’s probably best not to read books like this too often! No need to give yourself an aneurysm.

  • Anonymous

    Thanks, I’ll read it as soon as the steam stops coming out of my ears over SB5. You are right, there is only so much of this a person can take at once without having a meltdown.

  • Natasha

    I’ve been a Republican for a long time. That time has ended
    This agenda the GOP is pushing;
    misogynist anti-women abortion legislation,
    ripping long-established rights from the American (Ohioans are, after all, Americans),
    withdrawing the financial support from local government,
    demolishing public education in favor of campaign contributing “charter school” operators,
    favoring corporate greed and Wall Streeters lack of ethics,
    dishonest representations about the intent and intent of their policy initiatives,
    reckless avoidance of Ohio law and constitutional provisions,
    demonization of educators,
    vilification of public safety forces (firefighters and law enforcement officers),
    dishonesty as a political strategy,
    blatant racism,
    are repugnant, anti-American and more like totalitarianism rather than any kind of democracy put forth in a free and freedom loving society.

    I cannot believe that in the dogma delivery, a-k-a press conference, on SB5 Kasich harkened back to the Bush years as good times in America – yeah if you were a Wall Streeter who was not in the NYC financial district on 09/11/2001. Too bad for Channel 10 having such sucky pay and benefits from his Dispatch Publishing pals that even Kasich makes fun of them!

  • Rob

    They aren’t cutting taxes for job creation. I firmly believe the republicans (with dems being the side show enablers) were doing this for the very outcome we are seeing now. They now have the platform to start knocking out things they have wished for for years: essentially any social program that asissts the general population in any way. Medicare, Medicaid, Social Security, public services can now be assaulted directly in the name of budget cutting.

    Now they fear things may actually improve, undermining their relentless attack on the general population. They will do everything in their power to derail it. Why do you think they want all these public sectors jobs gone? They want the jobs numbers to look bad just in time for the election in 2012.

    Hopefully, the people of this country can finally see thru the paper thin facade that is the GOP: rich loving, power hungry, foreign marketing building, anti-american, personal freedom controlling, and fiscally unfit.

    The democrats BETTER flat out come up with a cohesive platform to fight this, or it is over. It doesn’t help when you are given the power and then want to “compromise” with fascists. I was hoping for more than what we got with the last dem congress. To me, it may be time for the democrat version or the “TEA” party: American Labor.

  • Guest

    Acknowledged CB,
    We need to help the Dems do better. It is easier for the other side since they believe in all of that authoritarian nonsense. They march in lockstep as true believers or they have succumbed to the brainwashing from the radio. The Dems are the best we got otherwise we got nothin’. No money, no organization, minimal think tanks, no media ownership. Evil rich people own everything except our minds and they are working on that.

    The Rethugs represent evil rich people. So once again we have taxation w/o representation for us. Evil rich people hedge so they play both sides. But they definitely favor the R’s because R’s worship at the altar of money and power. That does not include us unless we let them know big time. That includes voting which is a right that the evil R’s want to take away, again.
    thanks for your thoughts.

  • Guest

    I am so sorry, but if you want smaller government, that is what we got. They (evil rich people) got more. Which part of the government do you want to be smaller? You could lose your job and that will make it smaller also. You want your pension; I want my Social Security. We agree on that much.

  • clambake

    Absolutely. The Dems have to make a choice: are they on our side or do they want to continue to try be on the side of Wall Street. There was not much hue and cry when the most vulnerable in our society and labor (via NAFTA) were sacrificed in the name of compromise or simply because Dems bought the whole neoliberal message. Now that the Republicans have come for the middle class there is more outrage. I’m really sorry that it has had to come to this.

  • Rob

    The TEAs have been labeled racist and fascist and it didn’t stop them.

    If action doesn’t occur now, you may as well be writing the eulogy for the current democratic party incarnation.

  • There is a horribly misplaced fealty given to people who think that slamming a for-profit business model corporate template onto political subdivisions is the way to fix the unfixable reality that our money and wealth is diminished and diminishing, while people (taxpayers – all of us) still want to think we’re exceptional and can provide everything in an exceptional way, even without the funds to do so.

    I had a constituent tell me not to contact her until Pepper Pike was turning a profit. I wrote back and said that if Pepper Pike is ever turning a profit, she should call in the ethics investigators. No political subdivision should ever be “turning a profit” – as you say in this post, it’s a surplus municipalities seek to achieve by the end of a fiscal year, rather than a deficit. But it’s no “profit” and this request by this constituent – who is an extremely successful businessperson in her own right, demonstrates just how out of whack the average (and not so average) taxpayer’s knowledge of how the heck municipalities do what they do, and the rules that govern us to get the job done.

    That even 48% of the less than half of Ohio voters who chose Kasich over Strickland did so proves my point.

  • Fotogirlcb2002

    the right to work is on its way –its in the new house amendments– employees pay “no fair share” automatic dues — thats what will make Ohio a right to work state …
    My personal opinion if you pay NO dues then you dont get what is bargained for — let those people who are dues free depend on Kasich merit crap

  • Fotogirlcb2002

    Kasich says this isnt political that its not intended to hurt people–
    well he seems angry whenever anyone challenges what he says or points out something thats not the facts
    IF this isnt a political issue whay did he show up in Mason Ohio yesterday to talk about SB5
    HAHAHAHAA he made reference to the Reds game yesterday and connected it to his speech — well surprise the Reds didnt even play yesterday– he said his staff was mis-informed —
    well thats true — they all seem mis-informed–about everything
    Folks we neeed to plan now on how we are going to fight all the ads that are gonna appear in the papers and on TV –people are dumping money in Ohio to be on his side
    its time we all became pro-active not re-active
    Wonder how many loopholes they( Husted?) will invent when looking at the documents we need along with the pre-signatures to get to ballot and be able to collect petition signatures.

  • Guest

    Agreed Rob,
    The Teabags have better funding. Again evil rich people use the ignorant. One party rule = near slavery.

  • Rob

    To me, Republicans are apathetic as to whether the education is good or bad. The ultimate goal is to ensure the money goes into organizations that will support them. It’s purely a money game to them and they can care less who gets steamrolled in the process.

    Also, if they get their ultimate goal of “Right to Work” the organization you work for can fire you for any reason. Just wait until HR can go out and see what bumper stickers you have on your car. Support something they don’t like, see ya. It has happened in other states and there is nothing that can be done about it.

    I guess we’ll see where the voting public goes with the referendum. I hope people will be able to look thru the soon to be brutality we are going to witness in every bit of media we are exposed to. This will prove to me if people can still think critically.

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