As CNNMoney reports, states around the country, faced with the challenging of “clos[ing] massive budget gaps,” are resorting to increasingly severe proposals. In Wisconsin, Governor Scott Walker lodged a plan to saddle government workers with significantly higher payments toward their healthcare and pension plans; further, in an even more tendentious submission, his proposal would “limit or end public workers’ collective bargaining ability, effectively neutering the unions.”
In the political phraseology of the United States, bogged down in the vacuous false choice of Republican versus Democrat, proponents of the “free market” are allegedly not supposed to concern themselves with scoundrels like government workers’ unions. They are rather to be regarded as the enemy, as conducting an incessant attack on taxpayers in order that they might get something for nothing.
But the anti-union turgidity of the Republican variant of the “free market” obscures the actual — as against the imagined — effects of the state’s pervasive interventions in the economy. When the state creates monopoly or oligopoly conditions, limiting competition to favor political and corporate elites, it also creates monopsony or oligopsony conditions for its own purchase of labor. In the same way that the state’s restrictions on the services that it and its cartels sell drive up the cost of those services, its strangulation of the number of buyers of labor allows those buyers to hire workers for pennies on the dollar.
Workmen who would enjoy a surfeit of employment options in a freed market — who might work out of their homes or in any number of small operations — are forced into the few big organizations, whether corporate or government, that comprise our statist economy. Because, as Kevin Carson has argued, “comfortable poverty becomes impossible” within state capitalism, workers are driven like steers into a tapered off range of employment opportunities.
Voltairine de Cleyre, describing the ideal program of the free market anarchists of the nineteenth century, hypothesized that, “government privilege being taken away,” “bosses would be hunting men rather than men bosses.” To take away what few bargaining chips yet remain for labor, which is already gathered in state-regulated unions that are little informed by real, rank-and-file workers, is the ultimate indignity.
Even the existing “collective bargaining” in the present system is illusory, consisting of a small group of delegates coming to the table to negotiate on behalf of a huge, disenfranchised mass. Regulation of unions has enabled the state to prescribe the parameters within which labor and capital reach their agreements. Just as the welfare state is — contrary to its humanitarian promotion — a means of modulating the viciousness of state capitalism, so today’s unions are designed to prevent any real labor movement.
If a few elites can sit down and decide how much it will take to propitiate the creators of value, then they can sidestep ugly strikes and uprisings. Now that state budgets are finding themselves in messy predicaments, the political class supposes that working people might not notice when they’re hitched to a bit more weight.
Well, the workers of Wisconsin have noticed. In what Murray Rothbard called “our era of the neo-fascist corporate state,” there are many benefits to be derived from statist monopolization of certain services. Whatever those are, though, they’re not extended the great majority of ordinary people on the state’s payroll.
It’s not your average teacher or administrative assistant that reaps the rewards of price-boosting monopoly, but the rarified class of elites who take a little slice every time the typical consumer or worker gets shorted. Those consumers and workers are the victims of this state-commanded system, not leeches who take government jobs for a free ride.


So let's say that the Gov gets his way (and I assume that he will)…. what's next for worker mobilization?
I see two effects for teachers:
1) wage cuts and an indefinite freeze,
2) Busting the teacher's union
(There's apparently also some crony capitalism relating to the sale of state-owned utilities)
Anyway, while the wage cuts are bad, the union busting isn't necessarily bad. As you seem to be hinting, the unions don't really represent the workers — membership (and dues) are mandatory, and the teachers unions are typically the main supporters of the state monospony in education services. This may turn out to be a first step towards a freer market in education services– where teachers can elect to form new schools and the various school systems compete both for students and the best teachers.
If the big union is busted, does that bode well for minority unionism? Or will the Governor just jail any teacher who strikes?
Maybe I am missing something here but it seems you are saying that the people that work for the State (part of the Kleptocracy) are the exploited here? I am having a hard time accepting this premise if this was the premise you were trying to convey in this column. Please explain. Thanks.
I'm with you lefty…I read it twice and am still trying to figure what the message was intended to be. To me the bottom line is, so called pubic employee unions are a scourge on society…those who foot the bill, the taxpayers, have no seat at the bargaining table. History has proven that to argue that they have a vote would waste everyone's time, just as does voting.
I agree with this article, and while I think we ought not oppose the battles of the teachers unions, we ought not support them either. The average teacher or administrative assistant looks like a gazillionaire compared to the average indentured servant… err I mean… college graduate who is now up to up to his or her ears in student loan debt and without a job to pay it off. We should be fighting for the victims of the system in order of their victimhood.
Left Anarchist – Every worker is exploited as within this system; it would be difficult indeed to draw a bright line between workers for the State (i.e., the formal State) and workers in nominally private firms that benefit tremendously from the State's interventions in the economy. Even if we could accept that there is a meaningful line to be drawn there, what would we say of those economies where nearly everyone is on the government payroll? In some countries, for instance, state companies and agencies make up the vast majority of the employment opportunities. Is every worker within such a system a venal parasite? I tend to blame the system itself and the people sitting atop pyramid of exploitation rather than the people at the bottom who're trying merely to make a living.