Taking on Public Sector Unions: Restoring Balance in Government

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Since FDR’s time, the dangers of public sector unions have been recognized—from the conflicts of interest in bargaining with politicians to the burden placed on taxpayers. While private sector unions were designed to protect workers from corporate abuse, FDR himself warned that government unions undermined democracy and made strikes by public employees “unthinkable.” Over the decades, political deals expanded their power, leaving taxpayers footing the bill for inflated wages and benefits. Now, with Trump signaling a direct challenge to entrenched public sector unions—especially teachers’ unions—the fight is about reclaiming accountability, restoring fairness, and ending the cycle of political handouts.

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:17):
Is rightfully taken on the public sector union Joe, it's
interesting you want to go back to when an essence
unions really were empowered. It was called the Wagner at
and was nineteen thirty seven. It was FDR again, there

(00:38):
was a letter that was written to the president of
the National Federation of Federal Employees that FDR actually supported
the right of workers to unionize, to ensure a working conditions,
a myriad of other things, all the various different grievances.
But he believed that collective bargaining for public sector unions

(01:03):
was completely not right. It wasn't the right thing to do.
He declared that we the people set public policy through
the democratic process in America. Again, binding the people to
a collective bargain agreement takes authority away from the people. Again,

(01:23):
he thought that and this is a quote, strikes by
government employees were just unthinkable and in tolerable, and believe
it or not unions agreed with them. John Fund did
a great column on this recently in National Review. Kennedy

(01:45):
quite frankly, you know, he kind of pushed in that direction.
And then nineteen sixties, of course Lyndon Johnson allowed public
sector unions a lot more bargaining power. And again you
can see the conflict of interests that's involved when you've

(02:08):
got government officials politicians looking for votes, politicians looking for votes,
and the same politicians could hey, give all sorts of
handouts and giveaways to government workers, higher pay, a myriad
of other things. It hasn't worked out well at all.

(02:29):
Quite frankly, I think one of the most god awful
unions in the entire country, quite Franka, as the teachers' union.
And finally we're actually actually seeing teachers wanting to leave.
They don't feel like paying the money to the teachers'
unions anymore, and it can take a look at how
well the schools are doing and have a basic shot
at that. But anyway, I love the fact that Donald

(02:51):
Trump is looking to take this on. This is something
that we've discussed plenty of times over the past twenty
five years on air. The need to get the public sector.
The union's involved with the public sector out of politics.
In fact, they should be banned. Loved it, loved it.

(03:14):
Ronald Reagan steps in air traffic control. Can't do that.

Speaker 1 (03:20):
Can't do that.

Speaker 2 (03:21):
But again, if we can do it with teachers, we
should be able to do it with all of these
other government employees. I mean, we're at a point in
time right now where the average government worker makes more
than people, and this has been the case for a
period of time, makes more than the average person in
the private sector. Again, we're supposed to be a country.

(03:42):
We're not supposed to be France, We're not supposed to
be Spain. We're not supposed to be these countries where
everyone and anyone wants to get a job with the
government because it's the right way to go. I grew
up in an area like that, quite frankly, and it's
quite depressing, to be honest with you. Yeah, I did
a bits last week. We were talking about handouts and

(04:05):
giveaways in many arenas, In many areas, many areas of
the country, the desire for people to just graduate from
high school, maybe get a two year degree, maybe get
a four year, maybe get no degree at all, and
then just get a GOP pushy job with the government.
Does that make the country better in any way, shape, matter,
or form. No. No. So again, this is going to

(04:28):
be a tough slog for the president, but I wholly
support what he's doing. Watchdog on Wall Street dot Com