Permit me to draw your attention to the curious incident of the public-sector unions in the campus protest. You may see nothing curious in Ontario government unions embracing Hamas because it’s the sort of radical extremist thing they always do. But to see the world clearly, we must preserve the capacity to be surprised at what does not surprise us.
Frankly, I think we should be startled at the image of these unions preventing rapacious Dickensian governments from exploiting downtrodden bureaucrats. We all know state employees enjoy better average pay, far better job security, and lavish pensions, though they don’t seem very happy on average. But there’s something even weirder about organizations whose ostensible purpose is to protect Canada’s labour aristocracy as if they were the proletariat going about encouraging public servants to join pro-Hamas demonstrations.
What’s going on here? And why aren’t we surprised?
Even economically, these unions are a disaster. In a sense, the problem with unionization is that it works. It manages to squeeze more out of employers than the labour in question is worth. At least in the short run. In the long run there is no free lunch, so companies and industries facing state-mandated unionization, like U.S. carmakers, go into long, ugly declines.
It can be delayed, including by back-loading benefits. But as GM’s CFO said in 2014, “You can’t be a $100 billion pension plan with a car company attached to it.” At least not indefinitely. And as Henry Hazlitt said of the childless John Maynard Keynes’ famous flippant dismissal of prudence (“In the long run we are all dead”), “Today is already the tomorrow which the bad economist yesterday urged us to ignore.” And Hazlitt’s retort dates to 1946. That tomorrow arrived decades ago.
Naturally, unions switched to targeting the public sector where you can raise prices, wreck service, and stick citizens with the bill. Not indefinitely, but far longer than firms dependent on voluntary customers with choices.
Sure, government becomes sclerotic and unaffordable and the public and political mood sours. But we’re all right, Jack, with defined-benefit pension plans and early retirement to barbecue thick juicy cuts of meat while you boil rice. It’s called “social justice.”
It gets worse. Much worse. This wealth-destroying disaster can only strike if unions succeed in usurping crucial management decisions. But if the entity is government, seizing control offers far bigger prizes than mere cash. Powerful public-sector unions can dictate policy. And they do, endlessly organizing, agitating, wrangling, speechifying, and voting after normal people have fled the room, only to wonder years later what went wrong.
Parents, for instance, do not run education in Ontario, directly or through school trustees. Nor do politicians, or teachers. Unions do. And not coincidentally, schools are unbearably woke, discipline is in ruins, and students learn little or nothing.
We need to be astonished. And appalled.