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Source link: http://archive.mises.org/15802/the-political-economy-of-government-employee-unions/

The Political Economy of Government Employee Unions

February 24, 2011 by

The main reason why so many state and local governments are bankrupt, or on the verge of bankruptcy, is the combination of government-run monopolies and government-employee unions. Government-employee unions have vastly more power than do private-sector unions because the entities they work for are typically monopolies. Their days are numbered. FULL ARTICLE by Thomas J. DiLorenzo

{ 156 comments }

Walt D. March 2, 2011 at 11:24 am

billwald:
“Should every voter have a line item veto over where his taxes should go?”
I think this would be a great idea.
You should be able to opt in or opt out of any expenditure that is not authorized by the Constitution.
Obviously, this would require that President and the Congress read the Constitution and the SCOTUS uphold it (which they have never done), so I think this proposal would be DOA.

billwald March 2, 2011 at 1:10 pm

“In public unions the monies from the union is used to elect legislators.”

Honest politician: when you buy him he stays bought. Only one term term limits will change anything.

Industrial unions, civic organizations, businesses all buy politicians. Amazing how a politician can be divided into so many parts and still live.

Why is there no political organization for the working poor? Because 90% of the working poor think they are middle class. The rich have convinced the American public that “everyone can grow up to be president” e.g. “get rich.” People who think they will be rich don’t need no stinking union – especially those who went in debt to get a high school education at a 4 year college.

All we hear from the 80% of Americans who think they are above average is “We deserve this, we deserve that.” They deserve to be neo-serfs because they have earned it.

billwald March 2, 2011 at 1:20 pm

Wonderful. The neo-cons would vote 90% of their contribution to the military and the working poor who realized they are working poor would vote their taxes for benefits to themselves. The true “middle class,” all 20% of the population, would vote for the system the way it is and the 5% stinking rich would vote to kill all welfare. Did I leave anyone out?

Walt D. March 2, 2011 at 2:39 pm

billwald:
Apart from FICA, less than 50% of all taxpayers pay any Federal Income Tax all.

billwald March 2, 2011 at 4:51 pm

FICA IS an income tax with a different name. The money from it has always gone into the treasury and is spent for current budget needs.

Walt D. March 2, 2011 at 5:21 pm

FICA is a Ponzi scheme – not an income tax. Only the surplus, after entitlements were disbursed, was stolen and placed into the general fund. This is how the budget was “balanced” at the end of the Clinton Administration. Now, there is more money going out than there is coming in. This situation is going to get worse as more baby boomers reach retirement age and people in their 60′s who have exhausted there unemployment benefits who are still out of work but technically no longer unemployed choose to take early retirement.

billwald March 9, 2011 at 12:37 pm

> Only the surplus, after entitlements were disbursed, was stolen and placed into the general fund.

This started with FDR because it is how the law was written.

http://www.nationalcenter.org/SocialSecurityAct.html

TITLE II-FEDERAL OLD-AGE BENEFITS OLD-AGE RESERVE ACCOUNT

Section 201. (a) There is hereby created an account in the Treasury of the United States to be known as the Old-Age Reserve Account hereinafter in this title called the Account. There is hereby authorized to be appropriated to the Account for each fiscal year, beginning with the fiscal year ending June 30, 1937, an amount sufficient as an annual premium to provide for the payments required under this title, such amount to be determined on a reserve basis in accordance with accepted actuarial principles, and based upon such tables of mortality as the Secretary of the Treasury shall from time to time adopt, and upon an interest rate of 3 per centum per annum compounded annually. The Secretary of the Treasury shall submit annually to the Bureau of the Budget an estimate of the appropriations to be made to the Account.

(b) It shall be the duty of the Secretary of the Treasury to invest such portion of the amounts credited to the Account as is not, in his judgment, required to meet current withdrawals. Such investment may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. For such purpose such obligations may be acquired (1) on original issue at par, or (2) by purchase of outstanding obligations at the market price. The purposes for which obligations of the United States may be issued under the Second Liberty Bond Act, as amended, are hereby extended to authorize the issuance at par of special obligations exclusively to the Account. Such special obligations shall bear interest at the rate of 3 per centum per annum. Obligations other than such special obligations may be acquired for the Account only on such terms as to provide an investment yield of not less than 3 per centum per annum.

(c) Any obligations acquired by the Account (except special obligations issued exclusively to the Account) may be sold at the market price, and such special obligations may be redeemed at par plus accrued interest.

(d) The interest on, and the proceeds from the sale or redemption of, any obligations held in the Account shall be credited to and form a part of the Account.

(e) All amounts credited to the Account shall be available for making payments required under this title.

(f) The Secretary of the Treasury shall include in his annual report the actuarial status of the Account.

Albany Computer March 8, 2011 at 6:53 am

Government employee’s have so many power than a private sector unions.That is absolutely right.Because government employee’s are numbered.This is really a nice post

Jack Swindle March 8, 2011 at 11:10 pm

Public employee unions are not the MAIN reason for budget shorfalls. The reduction of tax revenue from the rich to pay for government for all of us is the REAL and MAIN reason. Let’s face it,the rich don’t need government to prosper but everyone else needs government in order to survive. So, we have a political racket where politicians extract money from the rich and votes from the poor by promising to protect each from the other.

billwald March 9, 2011 at 12:39 pm

Rich people don’t need the government because rich people ARE the government.

The Anti-Gnostic March 9, 2011 at 12:48 pm

Let’s face it,the rich don’t need government to prosper but everyone else needs government in order to survive.

So not true.

IT and Tech support service March 9, 2011 at 1:48 am

Its true that a government employee has many power than a private companies employee. Because govt. employees are few and private companies employees are so many.This topic is really good.

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