LABOR

As the budget mess unfolds and the legislature is working to plug gaps instead of correcting the problems, we are now looking at a situation, which was predictable, in which public labor is pitted against social programs for government tax dollar funding.

It is interesting as to which group will have greater sway over the legislature. In the past the two groups co-existed, however, as of late, the two groups are now fighting each other for the precious few dollars that are on the table, that is, unless there is a sweeping tax increase.

The lobbying efforts of public sector labor and their infiltration of the General Assembly through holding elective office seems to put them in better stead to take the few dollars that are available, but there is a great push from social service groups. Their lobbyists are not slouches either, especially when they can pull on the heartstrings of the public.

But the reality is that there is not much money and that public sector labor must concede some of its benefits.

The reality is that by creating this bureaucracy in order to feed political supporters, the legislature is directly responsible for the over-sized government labor. Additionally, it should be noted that by granting various benefits under state law, the legislature has also strapped the hands of local municipalities that are fighting the same battle.

Whenever there is a cry for more government action, a legislator thinks of how many jobs it will supply for friends and campaign supporters. There is very little concern as to whether or not the program is needed or whether it is merely a knee jerk response to some perceived problem in society. The legislature rarely finds a program it doesn’t like.

Therein lay my concern. I have long advocated for a smaller more effective government. I have long noted that the intrusion of government has been the bane of Rhode Island’s existence, even if the electorate is too ignorant to acknowledge it. But, saying it doesn’t solve the problems.

The public sector labor interests cannot be easily avoided. They have a large voting network. Politicians are fearful of this voting strength and therefore avoid angering the base. The irony is that they created the monster they now fear.

Public sector labor was once a secure refuge. It rarely paid well, but there was a great deal of job security and benefits. Now that we are paying public sector on a scale similar to that of the private sector, the added protections and benefits are making it cost prohibitive.

There is a viable need for public sector employment. The issue is just how far the government needs to extend itself and to what extent it will tax its residents for the providing of government jobs.

We also must note that government jobs do not bring new money into the state. It does have a circulation impact in that the people earning the money pay taxes and buy locally, but the reality is that such use of public funds is not growing an economy. By adding public sector employment, we are not doing much to increase the tax base, and, may in fact be creating a situation that has a negative impact.

In days past, government labor forces would shrink when there were times of prosperity in the private sector. Because they were under-paid, these employees would be seeking to get a private sector job. But now that wages are comparable and the benefit packages too good to leave, even if there were private sector jobs available, many would not leave. This only compounds the problem.

As we have seen in former Governor DiPrete’s early retirement plan and recent attempts at early retirement in New Jersey, the savings that are often assumed never materialize. In going down that road, we are not looking at ways to correct a bloated government, but rather we are looking, like Rhode Island legislators often do, to plug a gap and pass the buck to the next generation.

As I have indicated on many occasions, I do not fault the public sector laborites for their tenacity and their seemingly undying effort to secure pay and benefits for its membership. I personally place the blame on spineless legislators and the fact that they will put political careers and personal interests over the general welfare of the people of the State of Rhode Island.

I will discuss this further the next time I write on labor. In the meantime, don’t hope for much in terms of real or structural reform emanating out of the legislature. The monster is bigger than they can handle on their best day.