In the 1970s, New York City defaulted on its debt, and yes, the consequences were painful. Enrollment plummeted at City University campuses, which until then had offered free education. Seven thousand police officers were laid off. Crime skyrocketed. Services for the poor disappeared.

Lawmakers in both political parties have often acceded to unions' requests to avoid political confrontations or to curry favor. They have pushed difficult choices into the future.

Public employee unions are hardly the only group involved in bare-knuckles politics. Businesses lobby fiercely, and executives make hefty campaign donations.

Charles Duhigg Quotes