Here’s another round in the never-ending attempt to compare compensation for public and private employees. The comparison could be more complicated than rocket science, and any effort to explain it is near heroic. But this comparison, done by Josh Rauh of the Kellogg School of Management does make one important point:
This all suggests that public sector unions may not be very effective at raising compensation on a case-by-case basis. But one role they clearly have played as a group is to resist measures that would bring the true costs of public sector benefits to light. Currently these costs are concealed from the public by the flawed economics of the Government Accounting Standards Board (GASB) methods. And public sector unions are clearly not in favor of changing these standards, as revealed for example by their opposition to the Public Employee Pension Transparency Act.
Seems to me thats if more transparency is required of financial institutions, the same should be required of public employee unions. Here’s a summary of the bill.