Salary Info Shows Strength of Union Muscle

Political self-interest is driving California’s long-term fiscal problems
by Steven Greenhut
Reason
Jan. 02, 2015

In its 2013 obituary of Nobel-winning economist James M. Buchanan, the Washington Post described him as "the man who got economists to care about politics." I view Buchanan as the man who explained why California has so many long-term fiscal problems even though he didn't specifically focus on our state.

The political system, as described in civics textbooks (to the degree the public schools still teach civics) and by Capitol legislators, is a temple of democracy, where elected officials solve problems and do the public's work. But Buchanan realized that people who work for government are as motivated by economics as those who work outside of it.

They seek power and money within their organizations, just like everyone else.

This not-so-glamorous theory helps explain why most of California's long-term financial problems are tied to one source -- the unsustainable levels of compensation paid to state and municipal workers. Sacramento budget issues revolve around underfunded public-employee pensions, unfunded retiree medical care and the like.

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