Public Sector Unions: U.S, Canada Compared

From Stephen Williamson (emphasis mine): One simple way to look at unions comes from Econ 101, where we just apply standard monopoly power arguments. Labor law gives workers the right to effectively act as a monopoly seller of labor. Result? The union drives up wages and extracts rent from the firm. But that argument goes … Continue reading Public Sector Unions: U.S, Canada Compared

Origins of the Public Employee Pension “Crisis”

What's an "unfunded pension liability"? As part of the efforts of conservatives who are desperate to cut government spending (particularly on any kind of employee or social benefit spending), we are being treated to an unending drumbeat of "unfunded pension liabilities" are killing state and local government budgets.  Since it's all couched in accountant-type talk … Continue reading Origins of the Public Employee Pension “Crisis”

More On Wisconsin

So we've already established that Wisconsin Gov. Scott Walker is not trying to balance the budget or otherwise "fix" a deficit (see yesterday's post).  In fact, the bill itself is going to result in more funding problems, not less.  Menzie Chinn shows us: Another interesting implication for Wisconsin is that the transit systems would lose … Continue reading More On Wisconsin