Tuesday, March 8, 2011

Cutting the Calif budget - you must cut union wages

The following governors have come to this conclusion:
Christie/NJ
Walker/Wisconson
Kasich/Ohio
Daniels/Indiana
And there are surely more to follow, as the cost of civil service labor unions explodes into the outer space, to the point where state tax payers can no longer afford them, regardless of what seems equitable.

The golden state is facing a massive budget deficit. We can no longer afford everything that we are spending. Something will have to give. I put the blame for the massive state budget flatly on the head of the public service labor unions.

Permit me to illustrate.

Take $1.00 in loose change and put it on the table. Now, make two piles: one with 35¢ and the other with 65¢. This is the California state budget: the bigger pile is how much the state spends on wages and fringe benefits, and the smaller pile is the amount of money that actually flows to the citizenry.

Now, imagine that mom has popped her head into the room and announced that, sorry, junior, dad’s hours at his job has been cut, and you must give back 25¢.OK, smarty pants, how you gonna do that?

The only fair way is to cut 8¢ from the small pile, and 17¢ from the bigger pile. Now, imagine that you pound your fist on the table and declare: ‘by golly, this budget deficit is not going to be solved on the backs of the poor’. Bravo: you have a conscious. However, you must now take all 25¢ from the big pile of coins.

Either way, you must cut the union wages of all public service employees: in the first case, you put in a 25% cut in wages and benefits, in the latter case you project a 40% cut.

OK, big boy, what is your choice?

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