How Public Unions Loot the Taxpayer

Katherine Kersten explains the scam.  Only she doesn't put enough emphasis on the worst part:  defined benefit programs allow politicians to make iron clad promises today that won't be paid until they are long gone.  Art Laffer describes this as 'bad renter' behavior:  why do politically painful things like limit pay and benefits or save money when the benefits will simply fall to those who come after you?  Why not take the easy way out  and get the glory without the hassle?  This is why Governors across the nation are taking back collective bargaining rights for non-pay items:  it is a license to steal.  Hattip Carpe diem

"Here's the vicious cycle: Union leaders take money from union dues and pass it to Democratic candidates. Once elected, the politicians "negotiate" with the unions that helped elect them. In essence, the unions hire their own bosses who face them across the bargaining table.

Politicians repay unions' financial support by doling out hefty pensions and benefits. It's easy to be generous when you're spending taxpayers' money, not your own.  Elected officials aren't accountable to a board of directors or shareholders, and they don't have to worry about going bankrupt, as private companies do.

Government is a monopoly, or near monopoly, so it has no concerns about competitiveness or efficiency to keep it honest. To keep unions happy, politicians need only kick the can down the road.  Today, public unions are among the Democratic Party's largest donors, and form the core of its on-the-ground campaign machine.

But the gig is up.

Increasingly, taxpayers understand that the structural deficits this arrangement generates will bankrupt us. Already, taxpayer-subsidized pensions and benefits are edging out other spending priorities -- from schools to parks and highways."