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  • Video of the Week: Three Reasons Why Public Sector Unions are Killing the Economy

    The folks over at Reason.tv have produced a great video explaining how public sector unions are stifling economic recovery. It notes that unionized workers already made more than their private sector counterparts before the recession and that the pay gap has only grown since then.

    Government jobs don’t create wealth because all the money they spend comes from tax dollars that are taken from another part of the economy. Government union jobs are not a net gain like a private sector jobs are.

    With the Obama Administration hiring more and more government workers and making it more and more difficult for private sector companies to survive, it could be a long time before our nation’s unemployment rate returns to normal

    California is an example of what not to do. Unions (because of the laws they worked to pass) have put California on the edge of bankruptcy and turned their bonds into junk bonds. The LA Times reported:

    Institutions such as mutual funds and insurance companies are more likely than individuals to focus on the state’s low credit rating, a byproduct of Sacramento’s ongoing budget woes. Standard & Poor’s and Moody’s Investors Service both give California the lowest rating of any of the 50 states — A and A2, respectively.

    This is due to the fact that public sector unions have forced California lawmakers to spend a certain amount of the budget on certain things (as the video points out, 40% of the budget just for education) which caused a budget crisis that lead the state to consider selling its landmarks.

    Posted in Economics [slideshow_deploy]

    4 Responses to Video of the Week: Three Reasons Why Public Sector Unions are Killing the Economy

    1. Pingback: » Financial News Update – 04/16/10 NoisyRoom.net: There are two ways to conquer and enslave a nation. One is by the sword, the other is by debt. John Adams

    2. Billie says:

      Unions represent the weak that won't speak up for themselves. What the heck are the weak doing, working in government?

      When the president hyped up this create or save jobs claim, why isn't it ever mentioned which it's done when it's reported it's been done? How come not one person asked the president if what he meant by "created or saved" had to do with the public or private sector? As we all know he is doing everything possible to make it impossible for the private sector to grow and probable to close while government is growing at massive speed with all it's thievery of the private sector?

    3. Paul says:

      All Unions should be banned from Federal and State Governments.

    4. Gordon says:

      Thank-you Reason TV for shining a laser beam on the biggest problem this country faces. At the end of the day there is very little difference between Communism and a Government which claims to be capitalist but spends more money in the public sector than in the private. Every federal worker should immediately face a wage freeze and a clawback on pensions before any tax increases on the private sector are contemplated. Without change, the USA really is the next Greece. We live in revolutionary times as a result. Fortunately all of my friends plan to vote straight ticket Republican in the mid-terms because they have never felt more frightened of the Government than they have with Obama. One friend said it is a simple choice—vote Communist or Republican.

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