Mayor Bloomberg decries "labor-electoral complex"

Although he's far from being one of my favorite politicians, outgoing New York City mayor Michael Bloomberg nailed it when he dubbed the chummy and expensive relationship between unions and big city Democratic politicians as the "labor-electoral complex."

From the Wall Street Journal, paid subscription required.

He knows this from hard experience. When he took office in 2001, New York City spent $1.5 billion a year on pensions. Now it spends $8.2 billion, nearly a 500% increase when inflation rose by only 35%. Add health-care costs, and benefit payments are swallowing an ever larger share of the city budget. That means there is less money for current services like education or public works.

Everybody knows this has to change, but Mr. Bloomberg nailed the main obstacle to reform with his reference to the "labor-electoral complex." This is the cozy relationship between public unions and politicians that dominates modern urban government. It is the new Tammany Hall.

Union cash helps elect politicians who then reward the unions with higher pay and benefits. The cycle repeats until taxes become destructive and spending is unaffordable. Exhibit A is Detroit. But some 38 local governments have filed for bankruptcy since 2010, "largely because of out-of-control pension costs," Mr. Bloomberg said.

New York City has escaped this political fate for 20 years, thanks to unusual circumstances. First Rudy Giuliani won amid a crisis of public order, and Mr. Bloomberg is rich enough to have won without needing union cash.

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