States,
counties, cities, and school districts are having budget problems.
It�s
not so surprising, since the economic recovery in America
is being accomplished without any meaningful job creation.
No
jobs, no paychecks. No paychecks, no taxes. No taxes, and you get
budget problems.
Americans
can�t seem to hold on to their jobs or their homes. Young people,
unless they create their own, still are not finding jobs in their
field of education or experience.
There�s
always borrowing, and that�s what seems to be happening at an increasing
level by the federal government and even smaller governmental entities,
none of which can go out of business very easily. Small private
companies - and even some big ones - have been doing just that,
of late.
Before
they fold, however, they try to cut what historically is called
the biggest expense that they have - labor. They may do it by cutting
wages, after cutting benefits, or they may just cut the number of
workers.
A
recent column in the Christian Science Monitor suggested
that, to get to a balanced budget, governments should cut workers�
pay and benefits. That would do the trick, according to David R.
Francis, described as an economic journalist at the CSM.
He
pointed out that public workers have much better pensions, that
the average state and local government worker was paid $36.66 an
hour in �total compensation in 2009, and that private sector workers
are laid off or discharged at nearly three times the rate of public
workers.
The
question was: Do government workers have it too good?
A
little history is in order. There was a time when any government
work was looked down upon by those in the private sector. Perhaps,
workers for private companies didn�t deride government workers in
public, but it was close.
Government
wages were low (but the jobs were quite secure), the benefits were
just adequate, and the pensions were small, but not too bad. Comparing
the private sector and government work in the years between the
end of World War II and the turn of the century was like comparing
the tortoise and the hare, the latter being the private sector.
In
those years, business was booming. Every American wanted a car,
so the auto industry was in a full run. Every family wanted a home
of its own, so the housing industry was in full swing. All parents
seemed to want a college education for their children (since they
got one under the GI Bill), so state university systems across
the country were in a state of full growth. Home appliance manufacturers
were trying to keep up with the needs of all of the families who
just bought new homes.
Things
were going well and the ever-higher standard of wages and benefits
were being set by unionized workers, for all workers, whether they
paid union dues or not.
In
the meanwhile, the low-paid government workers put in their daily
routines, collecting their comparatively low wages and pedestrian
benefits - but it was steady work, at every level of government,
from the town clerk, to the city clerical workers, to the school
maintenance staff, to the highway departments, to the bureaucracies
of the federal government. Generally, across the country, they did
not have unions fighting for them, so they accepted what they had
and counted themselves fortunate.
The
movement of the means of production to other countries started in
the post-war period, but not many noticed. Things were still good,
but, by 1980, it was clear that the U.S. was headed for trouble,
as manufacturing and heavy industry was moved to other, low-wage
countries at an accelerated pace. It spelled trouble for wage earners
who had long considered themselves to be solidly in the middle class.
By
then, some states had given public workers the right to form unions
and bargain collectively with their employers over wages, benefits,
and pensions. Before that, they had been satisfied with their organizations
(that were not, in fact, unions) that provided a clambake in the
summer, a Christmas party (they still had them), and a �sunshine
fund,� that sent flowers to sick members or condolences on a death
in the family. That�s about all they could expect for dollar-a-month
dues.
Even
though there are some states that do not allow unionization of public
workers to this day, many did and the effect was that the disparity
between public and private employment began to disappear, to the
extent that, now, public employment is widely considered to be plum
employment and, therefore, is attacked from the right and even the
center on a daily basis.
Conservative
or right wing think tanks are not quite sure what to say about the
�whopping� total compensation of $36 an hour for public workers,
when some CEOs make the equivalent of $4,000 an hour or more in
�total compensation.� Obviously, they are reluctant to call attention
to the gross disparity between the rich and the rest of us.
It
appears that the first thing that comes to the minds of pundits
and politicians when it comes to budget and financial problems is
to solve the problems on the backs of the workers. Either cut their
pay, cut their benefits, or lay them off. None of these are solutions.
One
of the tricks of corporations over the past few decades accomplishes
two of their goals at once and the same has been proposed as a solution
to government shortfalls and failing budgets: pay newly-hired workers
less in wages, provide fewer or lesser benefits, and cut their pension
and give them a 401-K or some other scheme that has been so productive
for those who lost huge percentages of their retirement income when
the economy tanked.
In
this way, government at all levels saves money in their budgets
and they create two classes of workers, sure to cause dissension
and division among workers at some time in the future. Even where
there is a union, there will be less unity and solidarity among
the workers, all to the benefit of the employer, public or private.
Then,
there is ever-present question: Who is going to do the work?
As
life gets more complicated - what with climate change, a health
care crisis, financial problems, massive unemployment, migration
on a gigantic scale caused by a �globalized economy, pollution of
the air, water, and the food we eat - we look to some level of government
to deal with the problems and tell us candidly what is happening
to us and how to deal with all of these things, and more.
Who
is going to do the work?
A
more equitable tax structure surely would help struggling governments.
For example, in the April 5, 2010, issue of Forbes, Christopher
Helman noted that some of the world�s largest and most profitable
corporations enjoy a lower tax rate than individual workers, if
they pay taxes at all.
He
wrote: �The most egregious example is General Electric. Last year
the conglomerate generated $10.3 billion in pretax income, but ended
up owing nothing to Uncle Sam. In fact, it recorded a tax benefit
of $1.1 billion.�
The
other half of the elephant in the room is the sprawling American
empire and the lion�s share of the national budget that it consumes
each year. The U.S. cannot continue to support
some 750 bases around the world, a bloated defense and Pentagon
budget, and the conduct of two or three wars, along with several
more unacknowledged ones.
The
question remains for governments: Who will do the work?
If
the people are unemployed and unhealthy, what are the military forces
protecting? And,
for corporations and their managers, over what do they preside,
if not organizations that exist for the benefit of America and her people? The answer is: They exist
to enrich a handful of shareholders and themselves and the source
of that enrichment can be from any country. There is no loyalty
to America or the people.
It�s
time to reset priorities. It�s time for real debate, not the pathetic
name-calling that passes for debate in Congress and the state legislatures.
We�re running out of time on many of the vital issues of our day.
Even if we were to start an intelligent debate now, on social, environmental,
and political issues, we don�t have a lot of time to turn this behemoth
around.
BlackCommentator.com
Columnist, John Funiciello, is a labor organizer and former union
organizer. His union work started when he became a local president
of The Newspaper Guild in the early 1970s. He was a reporter for
14 years for newspapers in New York State. In
addition to labor work, he is organizing family farmers as they
struggle to stay on the land under enormous pressure from factory
food producers and land developers. Click here
to contact Mr. Funiciello.
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