The Meaning of the Wisconsin Debacle

To fully understand the events in Wisconsin today, one has to understand the roots of the problem of runaway public union benefits over time.  The crises did not happen over night, and is not wholly the result of the latest recession.  Truth is, as Steve Malanga tells us in this in depth explanation in the Autumn of 2005 issue of the indispensable City Journal, over 5 years ago, things were out of control even back then and have obviously only gotten worse.  In the modern economy, unions eventually destroy all industries and businesses once they come to dominate.  The classic example is the auto industry decimated by union rules and excessive pay for many years and now just a shell of its former self. In the public arena it all started once  unions got their tentacles into governments at all levels after they were allowed to collective bargain by the vote seeking, union friendly Kennedy Administration of the early 1960's. The result is what is now unfolding in Wisconsin and around the country.  Governments at all levels are broke, can't raise taxes anymore, and are in the process of imploding.  Overtaxed workers in the private sector, those who pay for the lush salaries and benefits of the government workers, have had it and are finally pushing back with a vengeance.  It was just a matter of time before the unions destroyed the public sector.  That time has finally arrived.  Here, in the words of a union representative speaking to a meeting of NEA members and union workers, is their unvarnished philosophy.  Since it's clear from the views expressed here that collective bargaining is the Holy Grail of their movement, the reason for the militancy of their stand in Wisconsin and elsewhere becomes obvious.

This column by Jonah Goldberg provides a succinct history of how and why public unions were enabled to bargain collectively.  A very big mistake that we've been paying a big price for many years.

ADDED: Here we have yet another perspective on the problem with collective bargaining and the cost of government.  As pointed out here the average government employee's compensation is now double that of the private sector.

ADDED: And here is a piece by Paul Greenberg in which he quotes the work of a U of Arkansas economist who does the math and shows how the public service employees in Wisconsin now receive fringe benefits valued at 75% of their wages as compared to 25% in the private sector.  Is there any reason why the Governor Walker wouldn't try to limit collective bargaining to just wages?

ADDED:  Back to Steve Malanga who points out here how unions successfully circumvented local town councils and school board oversight and budget controls by getting the state legislatures to pass arbitration laws favorable to unionized workforce.