Big organized labor groups can draft broadly political ballot measures that primarily serve their programmatic funding goals, then use the threat or passage of those measures to extract concessions from targeted actors (companies, wealthy residents, or elected officials). The tactic can create perverse incentives: measures that look publicly progressive but are structured to maximize bargaining leverage and earmarked revenue for the sponsors.
— If unions or other interest groups institutionalize this strategy, ballot measures cease to be just direct democracy tools and become routine bargaining chips that reshape state budgets, corporate location choices, and electoral incentives.
Scott Alexander
2026.03.06
100% relevant
SEIU sponsoring the California Billionaire Tax Act and earmarking 90% of revenue for health care while reportedly using initiative threats to pressure private actors.
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