FACE TO FACE: Are public-sector unions the problem in government finances?
So, those public sector unions have finally managed to spoil the American economy, what with their unreasonable salary demands, cushy benefit packages and bloated pensions. It's time we did something about it if we want to restore the economy and our liberty.
This is the ridiculous conclusion reached by newly elected American state governors in many U.S. states, and by my colleague, who looks wistfully southward for neo-con economic succour.
But do they have a point? Was it, in fact, working people who spoiled the economy for the rest of us? I use U.S. information, as it is by far the starkest possible.
First, how did the poor people (and unions) do during the U.S recession?
Well, eight million of them lost their jobs and 1.2 million of their homes were lost. Union membership in the U.S. dropped to 11.9%, the lowest ever. U.S. workers' salaries increased an average of 1% in the public sector and zero in the private sector over the past two years.
The gap between the rich and poor in the U.S. widened to its widest point ever. The bottom 90% of Americans - that's 133 million families - control just 4% of the nation's wealth.
Now, how did the rich people do during this period?
Well, corporate profits for the third quarter were $1.699 trillion, the highest ever recorded in the U.S., and $18.4 billion were paid in corporate bonuses. Federal tax cuts for the top 1% of "earners" average over $300,000 per person. And banks received $245 billion from the taxpayer.
From these numbers, it should be as clear to you as it was to Michigan's Republican governor, that clearly public spending and unions are the cause of their economic woes. In Michigan, it's not even a shell game. They cut corporate taxes $2.1 billion and slashed social services, education and public workers to pay for it.
Now, in case we think Canadian workers fared better than American workers, consider that, according to economist Tyler Cowan, the average Canadian worker's wage increased an average of $53 per year between 1980 and 2005.
No matter how much we would like it to be, the problem isn't the working man and woman.
Face to Face columnist Jim Nelson is a retired Tri-City teacher and principal who lives in Port Moody. He has contributed a number of columns on education-related issues to The Tri-City News.
