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Wednesday, July 6, 2011

government sponsored monopoly (NEA) vs. market competition (NBPA)

The private and public sectors are different. The unions representing private and public sector employees have completely different interests as well. The taxpayers aren't directly impacted by private sector labor conflicts, but the opposite holds true for public sector disputes. Accordingly, recent news about the largest teachers union and the professional basketball players provides an instructive contrast between the two worlds. First, some background.


The National Education Association (NEA) is the largest teachers union in the U.S. with 3.2 million members. The union of public school teachers was formed in 1857, and its stated vision is to have a "great public school for every student." Now, some 154 years later, maybe it's time to review its progress (NEA Summer School) with respect to its stated goal. At the outset, let's be clear about not blaming the individual teachers for our systemic issues with public education. As in any endeavor, there are both good and bad. But the system itself is broken, and that's neither good for America's future nor for our future leaders.

In any event, the NEA could make an immediate and lasting contribution by campaigning internally to encourage teacher members to work more days and longer hours at no cost to the taxpayer. This would be a real public service and offer a huge benefit to the taxpayer in these difficult times ----- along with the school children (As Budgets Are Trimmed, Time in Class Is Shortened).

But then, just when I want to believe the sincerity of the union vision about having "a great public school for every student", I recall former AFT (American Federation of Teachers) union president Albert Shanker's quote about the union's role regarding representing the interests of the teachers and those of the children, "When school children start paying union dues, that's when I'll start representing the interests of school children." And if that's not bad enough, there's the just released report on teacher cheating to make the student test scores look better than the awful reality (Systematic Cheating Is Found in Atlanta's School System and Probe Finds Widespread Cheating in Atlanta Schools). How sad.


In contrast, the National Basketball Players Association (NBPA) was formed in 1954. It is the labor union of players in pro basketball's National Basketball Association. The players and owners are currently engaged in a labor dispute (NBA losses suggest long lockout looms). As a result, at least part of next season may be in jeopardy. While the fans (customers) wouldn't like that, the taxpayer won't suffer harm if the parties can't resolve their dispute in a satisfactory manner. I'm betting they will, because it's in both of their best interests to do so. And if they don't, that's ok, too. It's their business and their jobs. In due course the customers and advertisers will vote about all this when they either support the league and its profitability or elect to spend their money elsewhere. That's the private market at work.


The differences between the two organizations are striking in other ways as well. The NEA is extremely active politically and its convention delegates just endorsed President Obama for a second term in 2012 (See Nation's largest teachers union endorses Obama re-election and NEA Endorses Obama's Bid for Second Term). The teachers union intends to spend at least $60 million in that effort. Vice President Biden told the NEA convention delegates that while, in his opinion, Republicans are hostile to public education, the union "should have no doubt about my affection for you and the president's commitment to you".

Nobody should be surprised that the NEA endorsed the president without even knowing the identity of the Republican candidate in an election which won't take place for another sixteen months. We can all be confident that the public sector unions will remain a very strong advocate for union friendly Democratic candidates and the current administration.


Then there's the private sector.


Unlike the NEA, to my knowledge the NBPA doesn't actively side with, or provide financial support to, either political party during elections.

If the teachers strike, the taxpayers are affected. If the players strike, the taxpayers aren't affected.

If the NBA has a lengthy or financially debilitating work stoppage, or in the process loses the support of its customers and eventually goes out of business, the owners and players will pay for their errors and suffer accordingly.

As long as the public schools continue to function as a de facto monopoly, the school districts will continue to provide employment to the teachers and NEA union members. Since the government employer of the teachers won't go broke, the teachers union will make every effort to influence the political process to its advantage. That's why they'll spend $60 million in 2012 to re-elect President Obama and other 'affectionate' politicians.

The players are paid individually in contracts negotiated with their employers. Depending upon their talents, the market and the financial position of the team, they are paid accordingly. Teachers have contracts which mandate that they be paid strictly according to seniority and degrees earned.

Members of world class teams that win titles earn incentive pay. Teachers have no incentive to graduate world class competitive students.

Players are cut from the team if they aren't deemed capable of helping the team achieve its targeted goals. Teachers gain tenure and are guaranteed continued work.

They both get the summers off.

And so on.

There are lots of differences between the private and public sectors. To continue to be viable in the long run, the NBA and its constituents will of necessity focus on satisfying the customer with a competitive offering. The NEA has no such customer, competitive or existential issues so long as they are able to elect the 'affectionate' politicians to protect, er, support them.

Thanks. Bob.

3 comments:

  1. Some say that education is too important to society to leave to the private sector. But when society makes receiving "an education" a right that is granted to the individual by the government, the resulting "education" is necessarily compromised. For if it weren't, everyone could not obtain it. If obtaining an education were something for which students had to strive and compete, there would be winners and losers and the goal of leaving no child behind, or providing a great public school for every child, or whatever other slogan is used, would take a backseat to fostering a system that encourages the motivated students to achieve a "world class" education. The result of the search for excellence is that the goal must be unattainable to some if not most who strive to achieve it. Excellence is exceptional, not universal. So, actually, regarding education, those who would prefer the priorities of our society to be focused on making the opportunity available for all students to pursue a truly world class education rather than guaranteeing most able bodied students the ability to say they obtained whatever level of achievement is consistent with the standards that the vast majority of children can reach, should consider education to important to leave to the public sector.

    Using the basketball analogy, fans (customers) have spoken clearly in demanding an excellent product for their money, a product that is the result of a system that filters out the less talented, less disciplined, and less focused players with little or no sympathy, appropriately so, for some universal "right" to be a professional basketball player. Our professional sports leagues are actually wonderful examples of the society that Americans have worked so hard to build and preserve, a society that provides opportunity to all and rewards (sometimes quite large) for those who achieve.

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  2. I obviously meant to type "too important" rather than "to important" in the last sentence of the first paragraph.

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  3. As long as all people are given equal opportunities of which they may or may not take advantage, there is zero reason why these opportunities should be run by the government. A free market system such as vouchers would serve the purpose well. Of course, there are many other alternative available competitive vehicles as well, such as home schooling, independent study and the like. In any event, we shouldn't as a society hold down those individuals who wish to make an effort to excel. Sadly, that is what happens all too often in our No Child Left Behind and NEA world of today. The rest of the world won't wait for us to sort it all out. We need to move quickly or be left behind. And it's not fair to our kids to hold any of them back.

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