The Beacon Hill Institute’s latest report,“Without cost saving reforms, public sector unions pose future liability crisis for states,” contains some shocking figures about the cost governments incur when they allow government employee unions free rein with monopoly bargaining.
The study first finds that a one percentage point increase in the unionization of public sector employees is associated with an additional $78 of state and local government debt per capita. For instance, 59.8 percent of public sector employees in Massachusetts are unionized. So, the strength of unions in Massachusetts leads to an additional $4,672.17 of state and local debt per person. With its population of 6,587,489 people, Massachusetts faces about $31 billion in debt. More than 31 percent of Massachusetts’s debt is attributable to the strength of public sector unions.