In: Economics
consider the following statement: the rich benefits that members of public sector unions recieve must be reduced.it is not fair that public sector workers are given pensions that are so much better than private sector workers. do u agree or disagree with the statement? defend your answers
Answer
I agree that public sector workers receive much more benefits than private sector workers.
According to the U.S. Bureau of Labor Statistics (BLS) National Compensation Survey, private-sector employees worked an average of 2,050 hours in 2008, 12 percent more than the 1,825 hours worked by the average public-sector employee.
Even on an hour-for-hour basis, one would expect private sector workers to be more productive due to the lack of competitive forces in government. Private sector businesses face constant pressures of competition to innovate and improve their goods and services, lest they lose business to their competitors. Government agencies, by contrast, are typically monopolies protected by law, and thus are not subject to such competitive incentives and pressures.
Even though private sector employees face huge amount of competition and greater working hours, data shows that they receive less salary for the same work as compared to the public sector employees, who receive benefits like rebates on electricity bills, pension etc over and above their salaries.
Thus, benefits that members of public sector unions recieve must be reduced.