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View Full Version : Economics Government unions win, you lose


The Mad Crapper
01-25-2010, 06:48 PM
Since President Barack Obama was sworn into office, the U.S. economy has shed 3.4 million jobs and the unemployment rate has risen to 10%. But not all sectors of the economy have been suffering equally. In fact, the sector of the economy most supportive of President Obama has not only avoided contraction, but has actually managed to grow instead.

According to a report released by the Bureau of Labor Statistics (BLS) last Friday, in 2009 the number of federal, state and local government employees represented by unions actually rose by 64,000. Coupled with union losses in the private sector economy, 2009 became the first year in American history that a majority of American union members work for the government. Specifically, 52% of all union members now work for the federal, state or local government, up from 49% in 2008. Or, to better illustrate these statistics: three times more union members work in the Post Office than in the auto industry.

So what? Why should Americans care if unions are now dominated by workers who get their paychecks from governments, instead of workers who get their paychecks from private firms? There’s one simple reason: private firms face competition; governments don’t.
Collective bargaining, the anti-trust exemption at the heart of a union’s power, was created to help workers seize their “fair share” of business profits. But if a union ends up extracting a contract from a private firm that eats up too much of the profits, then that firm will be unable to reinvest those profits and will lose out to competitors. But when a union extracts a generous contract from a government, the answer is always higher taxes or borrowing to pay for the bloated spending. And make no mistake: unionized government worker compensation is bloated.

As Heritage fellow James Sherk notes “[t]he average worker for a state or local government earns $39.83 an hour in wages and benefits compared to $27.49 an hour in the private sector. While over 80 percent of state and local workers have pensions, just 50 percent of private-sector workers do. These differences remain after controlling for education, skills and demographics.”

Unionized government employees not only want to keep their bloated compensation packages, but their leaders are desperate for more members and more union dues. That is why public-sector unions have become a fierce lobbying force for higher taxes and more spending across the country. Organized labor once fought against taxes and regulations that impeded the economic interests of their employers, but now they are in alliance with environmentalists pushing private sector and economy-crippling cap-and-trade legislation.

It’s worth noting that the BLS did not count the United Auto Workers working for General Motors and Chrysler as unionized government employees. But perhaps they should have. Our country will share their fate unless something is done about unionized government power.

Quick Hits:

•Three different White House advisers (Senior Adviser Valerie Jarrett, Press Secretary Robert Gibbs and Senior Adviser David Axelrod) gave three different estimates for the number of jobs President Obama’s economic stimulus program “created or saved” this Sunday.
•According to the latest CNN poll, 56% of Americans now oppose President Barack Obama’s economic stimulus program.
•Rep. Barney Frank (D-MA) said his committee was preparing to recommend “abolishing” Fannie Mae and Freddie Mac.
•The Obama administration Guantanamo Bay task force has concluded that at least 47 prisoners must be held indefinitely without civilian or military trial.
•Venezuela President Hugo Chavez has ordered popular television station RCTV off the air for not televising Chavez’s speeches in their entirety.

http://blog.heritage.org/2010/01/25/morning-bell-government-unions-win-you-lose/?utm_source=Newsletter&utm_medium=Email&utm_campaign=Morning%2BBell

The Mad Crapper
02-26-2010, 01:30 PM
So how are things going at GM and Chrysler since Jackass took control?

http://www.thepeoplescube.com/images/Obama_Peeing_Boy.jpg

Amnorix
02-26-2010, 02:16 PM
So how are things going at GM and Chrysler since Jackass took control?

When I think of you, your witty (not) username, and your posts, I think "pure class".

stevieray
02-26-2010, 02:19 PM
When I think of you, your witty (not) username, and your posts, I think "pure class".
pip pip..

wild1
02-26-2010, 02:27 PM
One of the advantages to the DNC of expanding government massively is that it expands the union rolls.

AFGE and AFSCME represent a significant chunk of union power in the United States today and are probably the fastest growing unions out there.

The Mad Crapper
02-27-2010, 12:31 PM
When I think of you, your witty (not) username, and your posts, I think "pure class".

Commie.

nlm

HolyHandgernade
02-28-2010, 12:49 PM
As Heritage fellow James Sherk notes [t]he average worker for a state or local government earns $39.83 an hour in wages and benefits compared to $27.49 an hour in the private sector. While over 80 percent of state and local workers have pensions, just 50 percent of private-sector workers do. These differences remain after controlling for education, skills and demographics.

Compared to what? And what constitutes "the average worker".

Let me tell you a story about how conservatives like to "make" their outrageous numbers. The FAA froze salaries on the actual controller workforce, gave increases and bonuses to the management, thereby depleting our already poor staffing numbers, and then used the salaries of managers and supervisors to disproportionately skew the "average controller" salary. Something tells me these numbers are similar. Notice how he says "average worker" not "average union worker", which means the figures probably reflect management level salaries added into it for "their average".

It just amazes me how much people hate and are vidictive against their fellow man. Despite these "bloated" salaries, still, most of the real wealth resides in the few corporate executives, and we're supposed to believe its us actual workers who are sucking the "reinvestments" out of corporations. That it is actual workers who are the real reason private businesses have such a difficult time, not the massive reserves of cash huge corporations use to sqeeze the competiton to a bare subsistance through mass marketing and cheaper pricing until the competion has to relent.

I guess it is easier to hate a real person than the "legal persons".

HonestChieffan
02-28-2010, 01:06 PM
ATC is still ass hurt cause Reagan cleaned them up and set things right.

Saul Good
02-28-2010, 02:12 PM
When I think of you, your witty (not) username, and your posts, I think "pure class".

Keep jingling those keys.

HolyHandgernade
02-28-2010, 07:21 PM
ATC is still ass hurt cause Reagan cleaned them up and set things right.

Yeah, we're "ass hurt". Now you can't make up your mind, are we "bloated" or "whipped indentured servants" Reagan rode roughshod over? That's right, it doesn't matter because, in the end, you have no clue and no point. Did you know the "evil" union back then gave the government ample warning so they could implement a backup plan? Did you know that all of the union demands were later met? Of course not, why let information get in the way of sounding like a surrogate "badass".

Direckshun
02-28-2010, 09:29 PM
That's right, it doesn't matter because, in the end, you have no clue and no point.

And no shame.

Velvet_Jones
03-01-2010, 12:30 AM
When I think of you, your witty (not) username, and your posts, I think "pure class".

Hehehehe - a lawyer talking about class. Hehehe.