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A post by Maynard

This Economist article on the bloated public sector unions, “Welcome to the real world”, sets down some facts and anecdotes illuminating the untenable situation of many local governments across the nation.

…as private-sector unions have faded, public-sector ones have thrived. In 2008 37% of government workers were unionized, nearly five times the share in the private sector, and the same share that was unionized 25 years earlier. Over that period, the share of unionized private-sector jobs collapsed from 17% to 8%. In 2009, for the first time, public workers comprised more than half of America’s union members…

This is because unionized private businesses were driven into bankruptcy and nonexistence, whereas the government always manages to deliver the goods to its cronies, leaving taxpayers holding the bag. Thus…

…Government employees earn 21% more than private ones and are 24% more likely to have access to health care. Only 21% of private workers enjoy a defined-benefit (DB) pension, which guarantees retirement income based on years of service and final salary. But 84% of state and local workers still receive DB plans.

This was all well and good until we went broke. Now the funds simply aren’t there and the promises can’t be kept, and it’s widely understood that something has got to give. The article predicts that harsh reality will ultimately tame the unions. I suppose it’s got to happen, but it will surely be a bumpy ride. Witness the recent turmoil in France.

(It sure would be great to have a defined-benefit retirement plan! As a taxpayer working a private sector job with no benefits, it’s my modest ambition to keep my hard-earned savings from being washed away in the tsunami of government avarice and fiscal mismanagement.)