Since President Barack Obama was sworn into office, the U.S. economy has
shed 3.4 million
jobs<http://paracom.paramountcommunication.com/ct/3855571:5683044644:m:1:147140772:A95F654CF16C2CED126421903FFBD17A>and
the
unemployment rate has risen to
10%<http://paracom.paramountcommunication.com/ct/3855572:5683044644:m:1:147140772:A95F654CF16C2CED126421903FFBD17A>.
But not all sectors of the economy have been suffering equally. In fact, the
sector of the economy most supportive of President Obama has not only
avoided contraction, but has actually managed to grow instead.

According to a 
report<http://paracom.paramountcommunication.com/ct/3855573:5683044644:m:1:147140772:A95F654CF16C2CED126421903FFBD17A>released
by the Bureau of Labor Statistics (BLS) last Friday, in 2009 the
number of federal, state and local government employees represented by
unions actually rose by
64,000<http://paracom.paramountcommunication.com/ct/3855574:5683044644:m:1:147140772:A95F654CF16C2CED126421903FFBD17A>.
Coupled with union losses in the private sector economy, 2009 became the
first year in American history that a majority of American union members
work for the government. Specifically, 52% of all union members now work for
the federal, state or local government, up from 49% in 2008. Or, to better
illustrate these statistics: three times more union members work in the Post
Office than in the auto
industry<http://paracom.paramountcommunication.com/ct/3855575:5683044644:m:1:147140772:A95F654CF16C2CED126421903FFBD17A>
.

So what? Why should Americans care if unions are now dominated by workers
who get their paychecks from governments, instead of workers who get their
paychecks from private firms? There's one simple reason: private firms face
competition; governments don't.

Collective bargaining, the anti-trust exemption at the heart of a union's
power, was created to help workers seize their "fair share" of business
profits<http://paracom.paramountcommunication.com/ct/3855576:5683044644:m:1:147140772:A95F654CF16C2CED126421903FFBD17A>.
But if a union ends up extracting a contract from a private firm that eats
up too much of the profits, then that firm will be unable to reinvest those
profits and will lose out to competitors. But when a union extracts a
generous contract from a government, the answer is always higher taxes or
borrowing to pay for the bloated spending. And make no mistake: unionized
government worker compensation is bloated.

As Heritage fellow James Sherk notes "[t]he average worker for a state or
local government earns $39.83 an hour in wages and benefits compared to
$27.49 an hour in the private
sector.<http://paracom.paramountcommunication.com/ct/3855577:5683044644:m:1:147140772:A95F654CF16C2CED126421903FFBD17A>
While
over 80 percent of state and local workers have pensions, just 50 percent of
private-sector workers
do.<http://paracom.paramountcommunication.com/ct/3855578:5683044644:m:1:147140772:A95F654CF16C2CED126421903FFBD17A>
These
differences remain after controlling for education, skills and
demographics.<http://paracom.paramountcommunication.com/ct/3855579:5683044644:m:1:147140772:A95F654CF16C2CED126421903FFBD17A>
"

Unionized government employees not only want to keep their bloated
compensation packages, but their leaders are desperate for more members and
more union dues. That is why public-sector unions have become a fierce
lobbying force for higher taxes and more spending across the
country<http://paracom.paramountcommunication.com/ct/3855574:5683044644:m:1:147140772:A95F654CF16C2CED126421903FFBD17A>.
Organized labor once fought against taxes and regulations that impeded the
economic interests of their employers, but now they are in
alliance<http://paracom.paramountcommunication.com/ct/3855580:5683044644:m:1:147140772:A95F654CF16C2CED126421903FFBD17A>with
environmentalists pushing private sector and economy-crippling
cap-and-trade legislation.

It's worth noting that the BLS did not count the United Auto Workers working
for General Motors and Chrysler as unionized government employees. But
perhaps they should have. Our country will share their fate unless something
is done about unionized government power.

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