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
public employees
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”
Observations on Wisconsin
I'm noticing that the media is being somewhat slow to pickup on the real story happening in Wisconsin and not spreading to Indiana and Ohio. It's not about fixing state deficits or finances. It's about busting unions, pure and simple. As such, it's part of an long-term effort that the right wing of American politics … Continue reading Observations on Wisconsin
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
On Wisconsin
For those who are unaware, street protests have come to Wisconsin. Literally tens of thousands (a local Fox news affiliate admitted they numbered at least 70,000 on Saturday) for what is now at least 4 consecutive days of protests in Madison, Milwaukee, and other cities. The issue that has brought them out is a proposal … Continue reading On Wisconsin
EconProph 