Issue of Public Unions is Complicated for Madison

Last February I got a couple of anonymous comments asking why I didn't address the labor protests in Madison at that time.

The main reason is that the Madison vs the rest of the state conflict is not just ideological. Everyone in the state pays taxes, but Wisconsin spends and inordinate amount of that money here in Madison. So all of Madison gets an economic boost at the expense of the rest of the state. Madison is economically successful because of all the knowledgeable people from the university and because of the Wisconsin work ethic. All the government money spent here helps too. Although no one in my immediate family works for the government, many of our clients work for the government. The tide of government money indirectly lifts all boats in Madison. This is not fair to the rest of the state. It would be nice to see government offices spread around the state and linked using IT.

Then there is the issue of the merits of labor unions. I completely rejected Governor Walker's argument that weakening the unions would save money for the state to help balance the budget. The unions were already agreeing to the pay cuts, so it wasn't necessary to dismantle them. My main criticism of unions is that they stifle innovation. They discourage giving people wide authority over a cost center and ability to innovate even if involves hiring and firing people or giving large bonuses based on managers' personal judgment. I am hoping future politicians use the weakened state of unions to shake things up and give great pay for great results, not to nickle-and-dime money out of employees.

It's easy for people to claim critics of unions don't care about helping the poor. Unions can help the poor, but they can also encourage mediocrity. We need to find ways to help the needy without the negative side effects of unions.