Why Wisconsin matters

National Post · Wednesday, Mar. 2, 2011

The following editorial appeared in Tuesday’s edition of the Wall Street Journal.

http://www.nationalpost.com/news/Wisconsin+matters/4369306/story.html

 

The raucous Wisconsin debate over collective bargaining may be ugly at times, but it has been worth it for the splendid public education. For the first time in decades, Americans have been asked to look under the government hood at the causes of runaway spending. What they are discovering is the monopoly power of government unions that have long been on a collision course with taxpayers. Though it arrived in Madison first, this crack-up was inevitable.

In 1960, 31.9% of America’s private work force belonged to a union, compared to only 10.8% of government workers. By 2010, the numbers had more than reversed, with 36.2% of public workers in unions but only 6.9% in the private economy. The sharp rise in public union membership in the 1960s and 1970s coincided with the movement to give public unions collective bargaining rights.

For decades, as the private union movement rose in power, even leftof-centre politicians resisted collective bargaining for public unions. Why? Because unlike in the private economy, a public union has a natural monopoly over government services. An industrial union will fight for a greater share of corporate profits, but it also knows that a business must make profits or it will move or shut down. The union chief for teachers, transit workers or firemen knows that the city is not going to close the schools, buses or firehouses.

This monopoly power, in turn, gives public unions inordinate sway over elected officials. The money they collect from member dues helps to elect politicians who are then supposed to represent the taxpayers during the next round of collective bargaining. In effect, union representatives sit on both sides of the bargaining table, with no one sitting in for taxpayers. In 2006 in New Jersey, this led to the preposterous episode in which Governor Jon Corzine addressed a Trenton rally of thousands of public workers and shouted, “We will fight for a fair contract.” He was promising to fight himself.

Thus the collision course with taxpayers. Public unions depend entirely on tax revenues to fund their pay and benefits. They thus have every incentive to elect politicians who favour higher taxes and more government spending. The great expansion of state and local spending followed the rise of public unions.

Current AFL-CIO chief Rich Trumka has tried to portray Wisconsin Governor Scott Walker’s reforms as an attack on all unions, but they clearly are not. If anything, by reining in public union power, Mr. Walker is trying to protect private workers of all stripes from the tax increases that will eventually have to finance larger government. Regarding public finances, the interests of public union workers and those of private union taxpayers are in direct conflict. Mr. Walker is the better friend of the union manufacturing worker in Oshkosh than is Mr. Trumka.

Notice, too, how fiercely the public unions are willing to fight for collective bargaining power even if it means public job layoffs. Without Mr. Walker’s budget reforms, Wisconsin will have to begin laying off thousands of workers as early as today. The unions would rather give up those jobs -typically for their younger members -than give up their political negotiating advantages. They know some future Governor or legislature will get those jobs back, as long as they retain their inordinate political clout.

This is the imbalance of political power that Mr. Walker is trying to break up. And he is right to do so

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