Amity Shlaes takes on Two AmericasThis weekend we celebrate Labor Day in a country divided between two kinds of workers. The first is the private-sector worker, the vulnerable one who rides the business cycle without shock absorbers. The second worker, who works for the government, lives a cushioned existence in which terminations take years, pension amounts are often guaranteed, and recessions are only thunder in the distance. Yet worse than this division is the knowledge that the private-sector worker will pay for public-sector comfort with ever higher taxes.(from wsj.com)How did we get here? Over the course of the past century, officials and politicians of both parties have sought to shut unions out of government or, when that failed, constrain their power within government. Early 20th-century strikes by police and other public employees were effective but proved politically damaging. Over time, the unions opted for a more quiet form of coercion—what might be called compensation coercion. Their success in this area brought them to the privileged ground they hold today.
The origins of our current predicament began back in 1912.
