Capitalism requires a balance between the public and private sectors. The private sector earns the tax money that the public sector spends.
Prior to 1978 Private Sector labor unions forced large companies to give their employees free life and health insurance, better pay, and retirement plans with a pension and lifetime health care. Private Sector employee earnings were substantially higher than their Public Sector counterparts.
During the same period, political patrons repaid supporters with secure light duty public service jobs. Public employees didn’t need a labor union, their benefactors took care of them, and they didn’t have to pay union dues.
Labor union organizers viewed the Public Sector as a potential gold mine and a seat at the political table. They secured both by promising political leaders large blocks of union voters and public employees higher pay and more benefits.
The Civil Service Reform Act of 1978 ended the political patronage era and opened the door for public employee unions. It also laid the foundation for a shadow government and gave public employees the power to elect their own bosses.
Public Sector unions then demanded and received better benefits than their private Sector counterparts. They were given job security, limited work hours, pay raises, the best life and health insurance plans, and more vacation time. Employees were permitted to occupy two or more successive government positions and earn pensions from each one.
Public Sector union membership (7.9 million) exceeded Private Sector union membership (7.4 million) for the first time in 2009. Today the numbers are
When the Public Sector expands, the Private Sector’s taxes are increased to cover the added cost. Higher taxes mean lower company profits. Less profit leads to fewer benefits for company employees. Today, Private Sector employers are being forced to ask their employees to share the cost of retirement and health care plans.
Elected officials beware, The Private Sector begrudgingly pays the taxes that support the Public Sector. Soon, Private Sector employees will realize they are paying for increased public employee benefits while their own benefits are being decreased. Then their attitudes will change from begrudging to a demand for new representatives.
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