Union Control of Government

In my recent report on federal, state and local government unionization I stated how total outlays for wages and pensions are about triple what they are for comparable private industry jobs,

I mentioned how these unions control government.

What, with their political contributions and the ability to close down government operations, along with their control of budgets because of their size.

The problem will persist until politicians are no longer beholden to unions for funds and getting out the vote.

When will that be?

Public Employee Unions and the Vaunted Stimulus

Want to know why the stimulus did not produce the jobs it supposedly was intended to do, but, instead had another primary purpose?

The two major public employee unions have tremendously influenced left politics on a national scale. For proof. a good portion of the Obama administration’s so-called stimulus went to states for budget gaps that had to be filled to safeguard those states’ unionized jobs.

That supposed government aid to the economy proved to be more a slush fund than a stimulus.

Unionized Public Employees

There is a serious problem when government workers are unionized. This started on the federal level requiring no Congressional approval and has now grown in all layers of government.

It was a JFK executive order 10988 in 1962 that started what has grown into a political-influenced monster, taking over our states and city governments as well. Unionization controls whatever it touches.

The unions now influence state and big-city government bureaucracies and, therefore, too many state and local political machines.

The public will be shocked to find out that public employees are being unionized at a rapid pace when private employment is only about 7% unionized.

Mind you, union wages run much higher than comparable wage scales. About one third, and more beyond private earnings. Pension funds and terms usually far surpass that of private industry. In some instances, five or more times. In general, total government unionized pay packages are about triple those of comparable private industry jobs. All of which have been budget-busting, and almost impossible to control.

And the taxpayers making lesser pay are paying the bills.

Official Corporate Takeover Pressure

In many instances, corporate proxies may make it easier for hostile takeovers to be made. It is not always a given that making it easier to foster corporate takeovers, is in the best interests of all stockholders.

The objectives of many of the takeover artists are often solely for quick, short-term profits. That may not be in the long term interest of the corporation or most of its shareholders.

Yet, much of the recent legislative pressure in Washington from the administration has been to accomplish this purpose.

This does little for corporate democracy. It helps reimburse party and lobbyist funding.

Tax Credits for Business Hiring

Experience shows that the idea of giving business tax credits for hiring does not generally work. Businesses would eventually hire anyway in most instances.

What is important and damaging to business, is recurring taxes, not the need for credits. Research has shown this time and again. But left-leaning politicos love to hand out tax credits under pressure, as they cannot abide permanent tax relief.

It’s apparently against their secular religion.

So they continually talk about temporary tax credits, to impress the public and potential voters. Moreover, if the public is unfamiliar with business, politicians get away with the ruse.

At least for a while; because tax credit policy simply does not work.

Political Business Men and Women?

Too many of our law makers in Washington and in state houses, are lawyers. It’s no small wonder; we have too many lawyers graduating college. They need something to do other than seek litigation briefs.

It helps explain why we have too little doctors, scientists and mathematicians. I guess, when you cannot cope with science or math, it’s far easier to become a lawyer. Years ago, you could become a lawyer without going to college. You took the bar exam after clerking in a law office.

I believe too many lawyers in government have become a major problem. We need representatives who actually represent the people. They ought to come from different job experiences. Furthermore, politicking should not be a permanent career.

I also strongly feel that we need small business men and women in Congress and in state houses. It would change the legislative outlook about taxes, business and everyday problems of the middle class as well as poor.

The Federal Reserve’s Conflict

The Federal Reserve has a conflict of interest in its very mandate. The new financial Dodd-Frank regulation law has tilted the effect of the Fed in many ways, giving the executive branch of government much more influence on the Fed.

Despite the logic for the Fed’s independence, Congress always has wanted to impose influence. It has to an extent. Since 1978 the Fed has had to enforce the Full Employment and Balanced Growth Act, known as Humphrey-Hawkins. That conflicts with the Fed’s stated currency/inflation activity.

The Humphrey-Hawkins Full Employment Act enforcement creates an inflating bias; certainly not one of dollar stability. So there is always a conflict of interest.

Remember, the Fed handles monetary policy. The president, through the Treasury Department, is in control of fiscal policy. It’s difficult for the Fed to control outlandish spending by the government.