The Corrupt Bargain Between Public Sector Unions and Politicians ... The Illinois Example ... Let's All Get a Job with the Government and Join a Public Sector Union

The union membership's ranks are growing in the public sector while shrinking in the private sector. Ever wonder why?

Well, one practices fairy tale government funded and totally taxpayer subsidized economics whereas the other faces government interference and real world cutthroat global competition. Guess which is easier?

Rauner's Illinois Revival Project is subtitled 'The new Governor targets the corrupt union-political bargain' and says this in pertinent part:

"According to the Bureau of Labor Statistics, from 2003 to 2014 Illinois had 0.2% employment growth, compared to 3.8% in Indiana, 8% in Iowa and 7.3% nationwide. Net Illinois job growth was 10,300 compared to 109,000 in Indiana and 115,900 in Iowa. . . . Illinois (ranks) 48th for doing business . . . .

Central to the mess is the rising bill for state pensions and salaries, and the constant union demands for higher taxes to pay for them. Compensation costs for state employees make up about one third of the state budget, with an astonishing 25% of current state tax dollars going to fund retiree benefits and an $111 billion unfunded pension liability.

Mr. Rauner campaigned on a plan to reform pensions by keeping current retirees in the old system while moving current workers into a 401(k)-type model. . . .

The current system is unsustainable, but so far it has been unreformable thanks to the ties between legislators and public unions. According to the Illinois Policy Institute based on data from the state Board of Elections, between 2002 and 2014 86% of state lawmakers received campaign cash from government unions. House Speaker Michael Madigan received more than $1 million."
.......................................................................................................

Now let's take a look at what's been going on with public and private sector union membership in the nation as a whole during the past several decades.
.......................................................................................................

The Shrinking American Labor Union has the story:

"24.2%: private sector union membership rate, 1973

 

6.6%: private sector union membership rate, 2014

 

A generation ago labor unions were often a familiar feature of the American workplace, but in private businesses across the country, unions have been shrinking. Today fewer than one in 15 private sector workers belongs to a union, compared with almost one in four back in 1973.

 

But dwindling union participation in the private sector stands in stark contrast with union membership among public sector workers, which rose sharply in the 1970s and has been relatively steady since 1980 at around 35 percent. Overall union membership has fallen by about a half since 1983, according to the Bureau of Labor Statistics, driven entirely by the decline in the private sector.

 

The causes of falling union participation are hard to pinpoint but may be attributed to several factors, including the pressures of global trade, technological change, the shift away from domestic manufacturing and a tougher stance against unions from government and corporate leaders."

 

Summing Up

The corrupt combination of Illinois politics and public sector union leadership has long been a sick and anti-taxpayer story. Unfortunately, it's not the only one in America these days.

 

Maybe the rest of us should forget about working to achieve nationwide prosperity and simply all go to work for the government. If we were all on the government payroll, that would solve the income inequality problem and the political problems as well.

 

Besides, government jobs provide good pay, lots of time off, guaranteed pensions, a minimal risk of layoffs and other taxpayer provided goodies, albeit generally underfunded. It all makes for a compellingly interesting situation.

 

There's just one problem with this idea of all working for the government --- who would pay for all this government if we all ceased working in the productive, risk taking, 401(k) private sector part of the U.S. economy and joined the government payroll? Beats me.

 

That's my take.

 

Thanks. Bob.