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public sector unions
DOGE Is Hitting the Accelerator on the Creeping Privatization of the US Government
Trump’s latest moves can be viewed as a massive speedup of a decades-long trend, rather than a break from the past.
Mar 22, 2025
Since returning to office, President Donald Trump has aggressively moved to shrink the federal government. His administration has frozen federal grants, issued executive orders aligned with the Heritage Foundation’s Project 2025, and, most prominently, created what he calls the Department of Government Efficiency, or DOGE.
DOGE has been billed as a cost-cutting initiative, although the actual amount of money being saved remains unclear. To lead DOGE, Trump appointed Elon Musk, a megadonor whose companies hold federal contracts worth billions. Musk has already moved forward with major cuts, including sweeping workforce reductions, the curtailment of government operations, and purges of entire agencies. Thousands of federal workers have lost their jobs.
While certainly dramatic, these actions reflect a longer trend of privatizing government. Indeed, my sociological research shows that the government has steadily withdrawn from economic production for decades, outsourcing many responsibilities to the private sector.
3 indicators of privatization
At first glance, total government spending appears stable over time. In 2024, federal, state, and local expenditures made up 35% of the U.S. economy, the same as in 1982. However, my analysis of Bureau of Economic Analysis data offers a new perspective, recasting privatization as a macroeconomic phenomenon. I find that U.S. economic activity has become increasingly more privatized over the past 50 years. This shift happened in three key ways.
First, government involvement in economic production has declined. Historically, public institutions have played a major role in sectors such as electric power, water delivery, waste management, space equipment, naval shipbuilding, construction, and infrastructure investments. In 1970, government spending on production accounted for 23% of the economy. By 2024, that figure had fallen to 17%, leaving the private sector to fill the gaps. This means a growing share of overall government spending has been used to fund the private sector economy.
The privatization trend risks eroding democratic accountability and worsening racial and gender inequalities.
Second, government’s overall ability to produce goods and services—what economists call “productive capacity”—has fallen relative to the private sector, both in terms of labor and capital. Since 1970, public employment has lagged behind private sector job growth, and government-owned capital assets have trailed those of the private sector. Although public sector capital investments briefly rebounded in the 2000s, employment did not, signaling a shift toward outsourcing rather than direct hiring. This has significant implications for wages, working conditions, and unionization.
Third, and relatedly, government increasingly contracts work to private companies, opting to buy goods and services instead of making them. In 1977, private contractors accounted for one-third of government production costs. By 2023, that had risen to over half. Government contracting—now 7% of the total economy—reached $1.98 trillion in 2023. Key beneficiaries in 2023 included professional services at $317 billion, petroleum and coal industries at $194 billion, and construction at $130 billion. Other examples include private charter schools, private prisons, hospitals, and defense contractors.
The Meaning of Privatization
Privatization can be understood as two interconnected processes: the retreat of government from economic production, and the rise of contracting. The government remains a major economic actor in the U.S., although now as more of a procurer of goods and services than a provider or employer.
The government’s shift away from production largely stems from mainstreamed austerity politics—a “starve the beast” approach to government—and backlash against the New Deal’s expansion of federal economic involvement. In 1971, the controversial “Powell Memo,” written by future Supreme Court Justice Lewis Powell, mobilized business leaders around the goal of expanding private sector power over public policy. This fueled the rise of conservative think tanks, including the Heritage Foundation, the eventual architect of the Project 2025 privatization agenda.
While government production shrank, government contracting expanded on promises of cost savings and efficiency. These contracting decisions are usually made by local administrators managing budgets under fiscal stress and interest group pressure, including from businesses and public sector unions.
Yet research shows that contracting frequently fails to reduce costs, while risking monopolies, weakening accountability and public input, and sometimes locking governments into rigid contracts. In many cases, ineffective outsourcing forces a return to public employment.
The Consequences of Privatization
Trump’s latest moves can be viewed as a massive acceleration of a decades-long trend, rather than a break from the past. The 50-year shift away from robust public sector employment has already privatized a lot of U.S. employment. Trump and Musk’s plan to cut the federal workforce follows the same blueprint.
This could have major consequences.
First, drastic job cuts likely mean more privatization and fewer government workers. Trump’s federal workforce cuts echo President Ronald Reagan’s 1981 mass firing of more than 11,000 air traffic controllers, a source of prolonged financial struggles and family instability for many fired workers. Trump’s firings and layoffs are already reaching far beyond Reagan’s.
As Trump’s administration aggressively restructures federal agencies, these changes will likely proceed without public input, further entrenching private sector dominance.
In addition, since federal spending directly contributes to gross domestic product, cuts of this magnitude risk slowing the economy. The Trump administration has even floated the idea of changing GDP calculations, potentially masking any reality of economic decline.
Rapid privatization is also likely to trigger significant economic disruptions, especially in industries that depend on federal support. For example, USAID cuts have already sent shock waves through the private sector agricultural economy.
Finally, the privatization trend risks eroding democratic accountability and worsening racial and gender inequalities. That’s because, as my prior research finds, public sector unions uniquely shape American society by equalizing wages while increasing transparency and civic participation. Given that the public sector is highly unionized and disproportionately provides employment opportunities for women and Black workers, privatization risks undoing these gains.
As Trump’s administration aggressively restructures federal agencies, these changes will likely proceed without public input, further entrenching private sector dominance. This stands to undermine government functioning and democratic accountability. While often framed as inevitable, the American public should know that privatization remains a policy choice—one that can be reversed.
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'Monumental Victory': Wisconsin Judge Axes Walker-Era Attack on Union Rights
"All Wisconsinites deserve the opportunity to live in a state that treats all workers with respect and dignity," one state representative said.
Dec 03, 2024
More than a decade after it sparked massive protests in the state capital, a Wisconsin judge on Monday struck down a controversial law that effectively ended public sector collective bargaining in the state.
In his final judgement, Dane County Circuit Judge Jacob Frost crossed out 85 sections of the 2011 law known as Act 10, which was championed by then-Republican Gov. Scott Walker. Frost's ruling restored the union rights of teachers, sanitation workers, nurses, and other public sector employees.
"After 14 years of battling for our collective bargaining rights, we are thrilled to take this step forward," Rocco DeMark, a building service worker and SEIU Wisconsin worksite leader, said in a statement. "This victory brings us immense joy. Our fight has been long, but we are excited to continue building a Wisconsin where we can all thrive."
"We realize there may still be a fight ahead of us in the courts, but make no mistake, we're ready to keep fighting until we all have a seat at the table again."
Act 10 severely weakened the power of public sector unions in Wisconsin by only permitting them to bargain for wage increases that did not surpass inflation. It also raised what public employees paid for healthcare and retirement, ended the automatic withdrawal of union dues, and required workers to recertify their union votes every year.
The law has had a major impact on the Wisconsin workforce. Between 2000 and 2022, no state saw a steeper decline in its proportion of unionized employees, a drop that the nonpartisan Wisconsin Policy Forum partly attributed to Law 10. Unions say that the law has caused a "crisis" for the state's education workforce, as 40% of new teachers leave within six years due to low pay and an unequal wage system. There is also a 32% vacancy rate for state correction officers.
Act 10 had one exception, however: Certain "public safety" employees such as police and firefighters were exempt from the collective bargaining restrictions imposed on "general" employees. It was this division that unions used to challenge the law in November 2023, arguing that it violated the equal protection clause of the Wisconsin Constitution. In July, Frost affirmed that the law was unconstitutional when he struck down an attempt to dismiss the suit. Then, on Monday, he specified exactly which parts of the law would be struck down.
"Judge Frost's ruling is a monumental victory for Wisconsin's working class," Democratic Wisconsin State Assembly Member Darrion Madison toldCourthouse News Service. "All Wisconsinites deserve the opportunity to live in a state that treats all workers with respect and dignity."
The lawsuit was brought by Ben Gruber, Matthew Ziebarth, the Abbotsford Education Association (WEAC/NEA), AFSCME Local 47, AFSCME Local 1215, Beaver Dam Education Association (WEAC/NEA), SEIU Wisconsin, Teaching Assistants Association (TAA/AFT) Local 3220, and Teamsters Local 695.
"Today's decision is personal for me and my coworkers," said Gruber, who serves as president of AFSCME Local 1215. "As a conservation warden, having full collective bargaining rights means we will again have a voice on the job to improve our workplace and make sure that Wisconsin is a safe place for everyone."
The news was also celebrated by state›wide advocacy groups and national leaders.
"We applaud today's ruling as a win for workers' rights and as proof that when we come together to ensure our courts and elected leaders are working on behalf of our rights and freedoms instead of partisan antics, we can accomplish great things," said A Better Wisconsin Together deputy director Mike Browne.
American Federation of Teachers president Randi Weingarten said: "This decision is a big deal. Act 10 stripped workers of the freedom and power to have a voice on the job to bargain wages, benefits, and working conditions. It's about the dignity of work. And when workers have a voice, they have a vehicle to improve the quality of the services they provide to students, patients, and communities."
"Former Gov. Scott Walker tried to eliminate all of that, and it hurt Wisconsin," she continued. "Now, many years later, the courts have found his actions unconstitutional."
Rep. Mark Pocan (D-Wis.) wrote on social media, "I voted against Act 10 more than 13 years ago, and am thrilled our public servants are able to once again organize and make their voices heard."
This is not the first time that Act 10 has been challenged in court, but it is the first time since the state's Supreme Court switched from a conservative to a liberal majority in 2023. Since Republican lawmakers have promised to appeal Frost's ruling, the law's ultimate fate could depend on elections in April 2025, which will determine whether the court maintains its liberal majority, according toThe Associated Press.
As they celebrated, the plaintiffs acknowledged the legal fight was not yet over.
"We realize there may still be a fight ahead of us in the courts, but make no mistake, we're ready to keep fighting until we all have a seat at the table again," Gruber said.
WEAC President Peggy Wirtz-Olsen said: "Today's news is a win and, while there will likely be more legal legwork coming, WEAC and our allies will not stop until free, fair, and full collective bargaining rights are restored."
Betsy Ramsdale, a union leader who teaches in the Beaver Dam Unified School District, said that public sector collective bargaining rights ultimately helped the state.
"We're confident that, in the end, the rghts of all Wisconsin public sector employees will be restored," she said. "Educators' working conditions are students' learning conditions, and everyone benefits when we have a say in the workplace."
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The Right-Wing Group Backing a New Anti-Union Strategy in Florida
A Miami-Dade school teachers’ vote is a test case for a novel experiment: whether a group dedicated to dismantling public sector unions can successfully seed a competing union.
Aug 15, 2024
Starting Tuesday, public school teachers in one of the country’s largest school districts began voting on whether to keep their current union—a longstanding local affiliate of a national teachers union—or join a newly formed employee organization that has the financial backing of a notorious anti-union advocacy group.
The vote is a test case for a novel experiment: whether a group dedicated to dismantling public sector unions can successfully seed a competing union. If it works, some worry that existing unions may be forced to ward off expensive and time-consuming copycat efforts elsewhere.
The Freedom Foundation, a right-wing group based in Washington state, is financing and promoting the new employee organization in Florida. Called the Miami-Dade Education Coalition (MDEC), it was founded to compete with the longstanding teachers’ labor union, United Teachers of Dade (UTD), an affiliate of the American Federation of Teachers (AFT).
The Freedom Foundation’s latest effort in Florida is tied to the right’s goal of busting unions throughout the country as a way of defunding progressive political campaigns, starting with those representing public sector employees.
The story began in spring 2023 with SB 256, a bill passed by the Florida legislature that raised the membership threshold for certain public sector unions to 60%. Under the new law, if less than 60% of eligible members have signed up for the union, it is vulnerable to automatic decertification.
Notably, the unions that were exempted from this new, higher membership threshold—representing corrections officers, police, and firefighters—all support Republican Gov. Ron DeSantis, who fought for the anti-union legislation.
“Tallahassee didn’t have a problem with unions playing politics as long as the politics were in favor of the governor and Republicans,” said Jim DeFede of CBS News Miami in an interview with an MDEC representative. “The unions that endorsed DeSantis got exempted from this bill.”
In the year since the law passed, more than 50,000 public employees have already lost union representation. Just this summer, all eight adjunct faculty unions at Florida’s public universities have been decertified.
The Miami-Dade teachers’ union avoided outright decertification by demonstrating a threshold of at least 30% interest from eligible members. However, their failure to reach the 60% threshold triggered the current election asking members to vote on which organization they want to represent them.
That’s where the Freedom Foundation comes in. After lobbying for the bill, the organization has been working for the past year and a half to get teachers in Miami-Dade County to choose its own pet organization, MDEC, over the UTD.
Ballots started to be mailed out Tuesday, according to the Public Employees Relations Commission (PERC). Teachers have until September 24 to cast their votes.
“Unlike UTD, MDEC’s founding principles protect our independence from outside affiliations,” the organization contends. “MDEC is its own legal entity, and no outside organization has control over our local union.”
According to an FAQ on its website, MDEC insists that it is accepting “outside resources” from the Freedom Foundation “solely for the duration of the campaign.”
Last month, the Freedom Foundation brought together public school teachers from across the country to teach them how to decertify their unions and keep “the socialist dogma of their leadership [out of] our children’s classrooms.”
MDEC filed for registration with the state labor board last October, and received approval in February; one of the signatories on behalf of MDEC was Allison Beattie, the Freedom Foundation’s director of labor relations.
Another signatory was Matthew Hargraves, who previously served as an attorney for an unaffiliated teachers union in Florida—Santa Rosa Professional Educators, which broke away from the Florida Education Association.
In January, MDEC held a press conference to reiterate that it’s a legitimate union.
The president and co-founder is Brent Urbanik. In an interview with CBS News Miami, he agreed that the Freedom Foundation is “bankrolling” MDEC but did not disclose how much money the foundation has spent on the effort. Instead, he confirmed that it is paying for all of the mailings, canvassers, and legal expenses involved in getting the alternative “local union” off the ground.
Urbanik insisted that “Freedom Foundation is not necessarily anti-union.”
The other co-founder is Shawn Beightol, who ran for UTD president twice. Media reports have claimed that the Freedom Foundation proposed the idea of an alternative union, which has been corroborated by CBS News Miami.
“The think tank proposed replacing these entrenched, agenda-driven unions with local-only ones that focused on local issues [and] Miami-Dade educators were ‘elated’ with the idea,” according to The Lion.
The Freedom Foundation’s latest effort in Florida is tied to the right’s goal of busting unions throughout the country as a way of defunding progressive political campaigns, starting with those representing public sector employees. These coordinated attacks—bankrolled by billionaires—largely culminated in the 2018 Janus Supreme Court decision, which ruled that public employees are not required to pay for the costs of union representation.
Since the Janus decision, the Freedom Foundation has pushed state-level legislation that makes it harder for teachers to pay union dues, used what some union leaders have called “federal mail fraud” to trick members into leaving their unions, and aggressively pursued access to personal information in order to contact union members directly with anti-union campaign materials.
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