In the labor union playbook to defend overly-generous “public servant” wages, one tired canard they love to trot out is that these government workers actually stimulate the local economy when spending their paychecks and pensions. There are two major problems with that argument.
1. It’s the classic “Broken Window Fallacy” — the ludicrous idea that if I take your money and spend it, society will be better off than if YOU spent it on something you actually preferred to acquire. https://en.wikipedia.org/wiki/Parable_of_the_broken_window
2. When local government employees work in a city, odds are that they don’t LIVE OR SHOP in that city. Most of a city’s payroll is spent in OTHER cities — usually lower cost, more rural towns. The smaller the city or town, the more likely the employees live elsewhere.
Here’s the proof from a San Diego U-T article:… Read More