Tuesday, February 22, 2011

Unions aren't to blame for Wisconsin's budget

Ezra Klein in the Washington Post:

Let's be clear: Whatever fiscal problems Wisconsin is -- or is not -- facing at the moment, they're not caused by labor unions. That's also true for New Jersey, for Ohio and for the other states. There was no sharp rise in collective bargaining in 2006 and 2007, no major reforms of the country's labor laws, no dramatic change in how unions organize. And yet, state budgets collapsed. Revenues plummeted. Taxes had to go up, and spending had to go down, all across the country.

Blame the banks. Blame global capital flows. Blame lax regulation of Wall Street. Blame home buyers, or home sellers. But don't blame the unions. Not for this recession.

Of course, the fact that public-employee pensions didn't cause a meltdown at Lehman Brothers doesn't mean they're not stressing state budgets, and that the pensions they've been promised don't exceed what state budgets seem able to bear.


Unions aren't to blame for Wisconsin's budget

By Ezra Klein


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