If you’ve taken an economics class in college, this is the theory behind Private Sector Unions.
Workers have wage demands. Everyone wants to get paid more, who doesn’t? The Business owner wants to keep those wages demands down, in order to make more profit. The less he has to pay his workers the more profit he can make.
Since the business owner is an employer and the workers are the employees, the owner normally has been shown to have a large amount of power.
So the workers need to get together and have collective actions so they can avoid the downward pressure of the owner to lower wages.
This is great if you don’t use fraud or force to make people join. Why not band together to create a force to fight for the wage you rightfully deserve.
Public Sector Unions do things a little differently.
Let’s take a look how…
You have workers who want higher wages. Everyone wants higher wages and more benefits. Instead of an owner you have
a politician.
Now the politician doesn’t have the profit motive. He doesn’t have the same drive to keep wages down, for a number of reasons.
First of all he is dependent on union contributions for his re-election campaign.
Secondly he is not responsible for any legal responsibility for deficits. He doesn’t go to jail if he racks up the deficit, or even loses his job. So there is no downward pressure to keep wages down, in order to create larger profits. Since there is no “TRUE” profit according to Union theories, Unions in the Public Sector are not needed in the same sense as Union in the Private Sector. Also since the Unions usually have a legal monopoly of the provision of services, if the Politician goes against the Union it severely disrupts the economy and his chances of re-election go down. 
This is one of the reasons why Public Sector Unions get more benefits.Let’s look at the political economics, or money laundering… ok, so Public Sector workers have to pay $700-$1000 dollars in Union dues. In which 95% goes to the DNC, or Democratic party. This flow of money goes through the Union bosses. 
The Union Boss then transfer a portion of that money to the politician.
The Politician then gives some money to the Union workers who then in turn can pay more to the Union, who then can give more to the politician, now this money is coming from the taxpayer.
Which is why you see a diminished amount of growth in the Private sector, and a huge increase in the Public sector.
So let’s take a look at Wisconsin and the teacher’s strike.
Public Schools in Wisconsin: 2/3 of 8th graders in Wisconsin cannot read proficiently despite being the highest per pupil spending in the Midwest. So it is not a shortage of money, and this is catastrophic in terms of education.
So in real dollars Wisconsin Public Schools increased per pupil spending increase by $4245 from 1998-2008, which did not add a single point in 8th grade reading levels, despite this HUGE additional spending.
In 2008, the Federal Government, provided Wisconsin Public Schools with $669.6 million dollars in subsidies. This was the money laundering part we talked about earlier. 
Connecticut, the best in the nation, still has 58% of 8th graders scoring below reading proficiency. 
Those who know the system best, the teachers, well they generally take their kids out of them. Nationwide, Public School teachers, are almost twice as likely to choose a Private School for their own children. 
Those who run the system, well… 37% of Representatives, and 45% of Senators in the 110th District of Congress, sends their kids to Private School, (self-report) Almost 4 times the rate of the general population. Which the number might go higher, but that was them self-reporting.
96% of Democrats who practice school choice voted against voucher program that would give poor family the right to do the same thing.
“If all members who exercised school choice for their own children, had supported school choice in policy, every major legislative effort in recent years to give parent school choice would have passed”2012FY Budgets show a shortfall of $140 Billion dollars
California shortfall is $25.4 Billion( 29.4% of FY2011 Budget)
Illinois shortfall is $15 Billion ( 44% of FY2011 Budget)
Nevada shortfall is $1.5 Billion (45.2% of FY 2011 Budget)
New Jersey shortfall is $10.5 Billion (37.4% of the FY2011 Budget)
Texas shortfall is $13.4 Billion ( 31.5% of the FY2011 Budget)
Just to name a few…The annual military budget of the US Military is about $700 Billion, which is 5 times the total deficits of the US states. But do not hold your breath that the empire will take any money from that budget to give to the poor.
Lastly lets look at Unfunded Liabilities. This is the great elephant in the room, this number complete dwarfs any numbers you might of heard or talked about. Unfunded Liabilities, are promises you made to workers and obligations you made which you don’t have money to pay for. The States’ “UL” is 22% of the GDP, and remember the GDP include paying government workers. All but 10 states and the District of Columbia have “UL” above 15% of their own state’s GDP.
Four states Alaska, New Jersey, Hawaii, and Ohio, have “UL” above 35% of their states GDP.
The total amount of Unfunded Liability comes out to over $100 Trillion dollars, or approximately $333,000 for every man, woman, and child.
The total net worth of all Americans together is estimated to be $50 Trillion dollars by the Federal Reserve, so you can see there is a little bit of a problem…
Sources:
http://cnsnews.com/news/article/two-thirds-wisconsin-public-school-8th-g
http://www.washingtontimes.com/news/2004/sep/22/20040922-122847-5968r/
http://www.outsidethebeltway.com/congressmen_love_private_school_for_their_kids_/
http://ezinearticles.com/?What-is-the-Total-Unfunded-Liability-of-the-US-Government?&id=3531013
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