Friday, February 18, 2011

Collective Idiocy

In yet another ham fisted move, Obama is sending his goons to Wisconsin to harass their elected representatives over a bill to curb the power of government unions in the state. I'm rather surprised by this since this means that he is blowing political capital on a fight that cannot be won. Just to clear: there is no money. None. If the unions lose, they still get pay and benefits far above what private employees get, and if they 'win' then thousands of them will be fired, and in the end they will still endure cuts of some kind because THERE IS NO MONEY, and protesting cannot change that fact anymore than it can the direction that the planet rotates.

Mish notes a very convincing quote about the evils of government unions from none other than FDR. Mish also makes some other very good points, but the key one that he over verbalizes is thus: with a private company the unions are (typically) reigned in by the fact that if they're too greedy their place of employment will go out of business, but with government unions such constraints are nonexistent (unless you live in Argentina, or someplace that's turning into it...). Compensation for government work should be a reflection of what taxpayers want to pay for it.

This can be further illustrated by government union defenders pointing to outrageous CEO pay. This is a viable rock to hide under in a private company, but with government unions the paymaster is the taxpayer; are they then saying that the taxpayers make too much money?

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