As Private sector jobs and salaries in America shrink,the Government's grow. Do you see something wrong with this picture?
“Meticulous attention should be paid to the special relations and obligations of public servants to the public itself and to the government.” So warned the union-friendly Franklin Roosevelt about the danger of public sector unionism. Some of us have ignored his counsel while others have simply chosen to look the other way. Regardless of your motivation all eyes should now be on public employee unions who continue to bleed American taxpayers dry.
Going beyond hourly wages, the Washington Examiner, reporting on data from the Commerce Department’s Bureau of Economic Analysis, finds that:
As of 2008, the average federal salary was $119,982, compared with $59,909 for the average private sector employee. In other words, the average federal bureaucrat makes twice as much as the average working taxpayer. Add the value of benefits like health care and pensions, and the gap grows even bigger. The average federal employee’s benefits add $40,785 to his annual total compensation, whereas the average working taxpayer’s benefits increase his total compensation by only $9,881. In other words, federal workers are paid on average salaries that are twice as generous as those in the private sector, and they receive benefits that are four times greater.
The federal government does not create a traditional sellable product and thus produces no revenue outside of what it collects from taxpayers. As the size of the private sector wanes you would assume that the public sector, whose salaries are paid from private sector taxes, would be forced to contract. You’d be wrong. A new Gallup poll released May 3rd “reveals significantly more hiring within the federal government than in the private sector.” This continues a theme seen throughout the recession – despite the private sector shedding jobs at a rate not seen since the Great Depression, the government continued to hire.
The continued growth isn’t a huge surprise. A full one-third of President Obama’s $787 billion stimulus package was aid to the public sector.
“While the private sector has lost 7 million jobs, the number of public-sector jobs has risen. The number of federal government jobs has been increasing by 10,000 a month, and the percentage of federal employees earning over $100,000 has jumped to 19 percent during the recession.”
Eventually the private sector will simply be unable to foot the bill for public sector pay. Unfortunately, it doesn’t necessarily follow that the size of the federal government will be forced to get smaller.