Ronald Reagan “Man is not free unless government is limited. ”

Government Unions Win, American People Lose

Posted by DailyPolitical.com on Jan 26th, 2010 and filed under Economy. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

In the wake of President Barack Obama taking office, the United States economy has dropped 3.4 million jobs with an unemployment rate that has climbed to 10 percent. However, not all parts of our economy are suffering as bad as others. In reality, the part of the economy that has managed to grow is the one that shows the most support to the President.

Last Friday, the Bureau of Labor Statistics, or BLS, released a report that showed the amount of employees of all areas of the government in 2009 that were represented by unions climbed by 64,000.  Combined with the union losses in the private economy, for the first time in the history of the country, 2009 had the majority of American union members working for the government.  More specifically, 52 percent of union members are now working for either the federal, state or local government. This number is an increase from 49 percent in 2008. For an example, there are now 3 times more union members working in the Post Office than in the car industry.

To explain a bit more, collective bargaining was designed to assist workers in getting their fair share of profits from business. However, if a union gets a contract from a private business that eats up most of the profits, that business cannot reuse those profits and lose to their competitors. Now if a union lands a huge government contract, aid is taken through higher taxes or borrowing money to support the extra spending.

Consider that the BLS neglected to count in the United Auto Workers who were employed by Chrysler and General Motors as unionized government employees.  This country will share the fate of those workers unless there is action taken regarding unionized government power.

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