How To Bankrupt The States

BigGov and BigLabor set the mother of all bailouts


Unions keep bankrupting the states
New Jersey public employee unions have to change their policy of extracting money they do not deserve from the taxpayers. That policy’s result will be a net loss for every citizen living here.

Jobs will leave for other states where right-to-work laws allow people to work without the hindrance of unions, states that are business-friendly, where governments are smaller and smarter than ours.

We cannot support the unions’ demands which, in my opinion, are an abuse of the taxpayers.

Union members call each other “brothers,” but from what I can see, those who are working would not give up a dime to help those brothers who are out of work.
(from nj.com)

Union Rollback
A guest on Fox Business Network said last week that public employee unions are bankrupting state governments. Isn't it time that legislators outlaw collective bargaining for public-sector workers?

Working for the government as a member of a union is an easy path to prosperity. On average, the yearly compensation for a public sector worker is, according to Bureau of Economic Analysis data, $67,812. In the private sector, that average is $59,909.

Put another way, when measured as total compensation per hour, state and local government wages are 45% higher ($39.66) than private-sector wages ($27.42).

To understand the problem created by high wages and gold-plated benefits for public sector workers, one needs only to read the work of Chris Edwards writing in the Winter 2010 issue of the Cato Journal.

Why this happened is no mystery. The gap has coincided with increased unionization in the public sector that followed what Edwards characterized as "a rash of state legislation encouraging or requiring collective bargaining" in the 1960s and 1970s.

In a more reasonable day, public-sector workers could not collectively bargain. Princeton economics professor Henry Farber documented in a research paper that in 1950 only one state let its public sector workers bargain as a group for compensation.

Sixty years on, it's hard to argue the public is better served by the unionization of state and local workers. Given that the public is liable for their lavish compensation, the opposite is true.

What the country needs are nonunionized state and local workers who serve the public, not themselves. Today's lawmakers need to unravel a series of grave mistakes made by their predecessors.
(from investors.com)

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