Collective bargaining and government employees

posted by Jeff | Wednesday, February 23, 2011, 7:13 PM | comments: 0

The controversy in Wisconsin is really getting out of control. Unfortunately, the circus causes all kinds of distractions around the real issues. Before I get to those, some disclaimers.

First of all, I do think that teachers are undervalued, and in many cases underpaid. There are so many broken things about education, particularly the ways that student and teacher success are measured. Second, I realize that the governor appears to be going about the budget cuts that he's entitled to make in a douchey way, and the news implies his agenda is less than pure. I get that too.

You might remember from grade school your first lesson about business, about the concept of supply and demand. The market generally dictates what a job is worth. Through American history, there were times where unfair labor practices and a lack of basic protection made working in factories dangerous. Unions were part of the solution to those issues.

In the private sector, unions can exert their collective bargaining to try and score higher wages. Maybe the company grants those wages, and figures out a way to raise its revenue and be competitive. If it turns out that the market can't support those higher wages, then the company goes out of business, or has to let people go. That's the way things work.

Government isn't that simple. The rules are different. Government entities like school districts are funded by taxes. When unemployment is high, less people pay taxes, and government entities collect less revenue. There is no adjustment that the government can make other than cut people or pay less.

This leads me to the absurd assertion that people are making that there is some right to collective bargaining. You don't even have a right to stay arbitrarily employed, so how do you have a right to negotiate for wages and benefits? The bottom line is that you can protest all you want, but if voters don't agree to subsidizing higher wages and benefits, there's nothing to negotiate.

This is a pretty good example of the opposing desires of our culture right now. It wants smaller government and lower taxes, but it also wants to keep people employed and empower them.


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