Unions and strikers should not bite the hands that feed.

One of the many arguments made by the unions and those striking yesterday was that they did not cause the financial crisis, and thus the money should be taken from the banks.

There is an element of truth in this, the crisis did originate from the banking sector.  However, while one may make the moral argument that they should be punished, in reality this would do the public sector no good at all.

In very simplified terms, the private sector is the money making sector of our society, it creates wealth and this wealth pays for the public sector.  To take money from the banks may bring some money back into the public purse, but only in the short-term.  Effectively it will choke the banking sectors ability to invest in wealth creation, in other words it’s ability to use money to make more money.  This flow of money into the public purse from banks creating more profit to tax from, and more people being employed meaning more tax, would decrease.  Overall this would mean less tax revenue, and therefore less money to spend on the public sector.  Not to mention the effect it will have on pushing banks abroad meaning job losses, and a loss of wealth creation.

On the same theme, unions and strikes would be wise not to disrupt the private sector too much, as after all they are creating the wealth that pays their wage and pensions.