Reagan Declares August 5 1981 PATCO Strike "Peril to National Security by Reagan; Social Discord Contributed to the Acceleration of the 1981 Bear Market

Why am I thinking about the air traffic controller strike led by PATCO union (thanks ys)? Because of the tremendous outrage in Wisconsin over Governor Walker's attempt eliminate state worker's collective bargaining rights, cut pay and reduce benefits.

Wisconsin Budget Bill Passes Committee, Stripping Employee Rights; Mass Teacher Walkouts Planned

Wisconsin Senate Democrats Walk Out, Threaten Quorum on Public Employee Bill

Wisconsin Governor Uses Police State Tactics (Literally) on Democratic Senators (Update

There is a tremendous amount of growing social discord and tensions in the US today and those tensions should escalate in 2H 2011 when state and local governments FY for 2012 gets underway and budget cuts result in an estimated 850,000 further job losses and cuts to other social programs. If the social discord in Wisconsin escalates and spills into the broader economy, it may parallel some of the social discord and unrest back in 1981.

Immediately after Reagan fired 13,000 air traffic controllers on August 5 1981, the Dow Jones bear market accelerated to the downside. I am not saying the PATCO strike was a contributing factor to 1981 bear market. But I am saying the strike itself was “representative” of the social discord and tensions in the US at the time.