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The Public Sector Weight Around Taxpayers’ Necks

Promoted from the diaries by Bill S.

“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.

Consider the following chart from Sunshine Review that outlines how much more state and local government employees as compared to the private sector:

Compensation

A. State and Local

B. Private Sector

Ratio A/B

Total Compensation

$39.66

$27.42

1.45

Wages and salaries

26.01

19.39

1.34

Benefits

13.65

8.02

1.70

Paid Leave

3.27

1.85

1.77

Supplemental Pay

.34

.83

.41

Health insurance

4.34

1.99

2.18

Defined benefit pension

2.85

.41

6.95

Defined contribution pension

.31

.53

.58

Other benefits

2.53

2.40

1.05

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 startling pay difference in both hourly and yearly wages is instructive but is susceptible to rebuttal. Sure, if you take into account everyone it appears as if the public sector pays 44% than the private sector, but government jobs on the whole require more skill (or so the argument would go). Those private sector numbers average in all the minimum wage jobs that skew the private sector downward.

Point taken, so let’s take a deeper look into a job-by-job comparison of the public and private sectors. According to the Bureau of Labor Statistics (and compiled by the USA Today) here is a sampling of salaries for comparable occupations:

Job

Federal

Private

Difference

Budget Analyst

$73,140

$65,532

$7,608

Chemist

$98,060

$72,120

$25,940

Cook

$38,400

$23,279

$15,121

Economist

$101,020

$91,065

$9,955

Janitor

$30,110

$24,188

$5,922

Librarian

$76,110

$63,284

$12,826

Physician Assistant

$77,770

$87,783

-$10,013

PR Manager

$132,410

$88,241

$44,169

Registered Nurse

$74,460

$63,780

$10,680

Secretary

$44,500

$33,829

$10,671

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. As Michael Barone explains, the money worked:

“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.”

The growth however is creating an untenable situation. A smaller pool of private sector workers are being asked to subsidize an increasing number of public sector employees and their unnecessarily high wages. Something has to give. You’d think that cutting the size of the federal work force and instituting a moratorium on government wage increases would be one of the first and easiest recommendations of the President’s fiscal commission. Again, you’d be wrong.

The problem is that Democrats are in bed with public sector unions. Unions vote Democrat every November and funnel hundreds of millions of dollars towards their campaigns. In return, once elected, Democrats play political favorites and work to increase the union ranks with the understanding that more members means more votes and more money. It’s a self-perpetuating cycle that is becoming a weight around the necks of private sector workers

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. Without political pressure it is quite possible that Democrats in Washington will simply ask more of the private sector. Hello, VAT!

President Obama has repeatedly made clear that “everything is on the table” in trying to deal with our huge debt and deficit. The private sector must go further than to simply hope that he freezes the size and pay of government – they must translate that hope into votes.

by Brandon Greife, Political Director of the College Republican National Committee

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COMMENTS

  • http://thesandsinstitute.org Vassar Bushmills

    Not just in the near term fight, but the whole notion of socialism…creating a state class (who produces nothing, but provides the table…the House man thanks you)..which then proceeds to bleed the money-pool dry…never knowing where the money ever came from anyway.

    The Constitution denies this brood “the table” in the first place, That’s what its all about.

    You’ve provided the ammunition to animate every working stiff in America…just so they’ll see what their money really goes to pay for.

    Think the GOP will hire you?

    Not

  • justfedup

    At what point does it all just collapse? We know this cannot be sustained. I guess this is what happens when public schools teach ecology & tree hugging instead of economics or history.

    • http://spendenforcer.com/ vortigernpendragon

      The average public worker now makes more money than the average private sector worker and the public sector is growing at a much faster rate than the private sector. The answer to your question is, not long before it collapses.

      I do believe this is a possible solution. It’s a long shot, but worth a try.

      http://www.youtube.com/watch?v=4Yjc6ltJV2c

    • dlsprite

      The average Federal salary reported is bogus. At the very least it is quite misleading to the general public by not indicating who is and who is not included, and whether or not the number includes the total cost of salary and benefits. The only way I can imagine such a high average is if the entire Federal payroll, including the president, members of congress, staffers, federal judges and all political appointees are included in computing the average.
      But don’t believe me, just Google search for the Average Federal salary and see what a federal government agency (not some newspaper) reports. Today the Bureau of Labor Stistics reports that for all occupations the average salary is $74,403. Even that number appears artificially high and lacking in definition of what and who all is included in the reported “average”.
      I suggest not climbing on this or any other “Federal pay is too high” bandwagons unless you are already a Federal employee and you believe your pay is excessive.
      David Spritke
      Aurora CO

  • constitutionalconservative

    We cannot afford our over-compensated public sector. Republicans need to be putting this issue on the front burner. It’s both a policy and political winner.

  • tropicgirl

    You need to be careful here that you are not championing the cause of lowering pay scales and benefits as a philosophy.

    This is WHAT THE BIG BANKS WANT FROM Europe, England, Mexico, and, ultimately, America. They want everyone to accept a socialistic pay scale, with minimal, cookie-cutter or no benefits and so on. They stoke up resentment from one group to another. That is not to say that there are way too many government workers. BUT<

    This plan of lowering salaries across the board comes to us from both the right and the left, one in runaway, predatory, worker-hating capitalism, and the other, restrictive socialism. BOTH CAUSES SERVE THE BIG BANKS.

    These are the talking points that big banks are using in order to ensnare countries, like Iceland, Greece, Spain and many others, into obtaining debt, then obtaining large loans, from them, on the backs of, and in exchange for degrading their society and workers, any benefits the middle class may have.

    THESE ARE THE TALKING POINTS. Don’t fall for it. EVERYONE SHOULD MAKE WHAT THE GOVERNMENT WORKERS MAKE AND THEY WOULD WITH A FREE SOCIETY.

    Don’t fall for it.

    • http://www.voteforteri2010.com teridavisnewman

      My husband is a double certified mechanical and nuclear engineer. He works for the Department of Defense and is a GS-14. He is an Air Force brat and grew up with his fighter pilot dad who is his hero and followed his footsteps in service to America.He is also not covered under a union contract. However, he likes serving his country, we have no children to put through college and we live within our means. He has been working for the DoD for nearly 17 years and with his particular skill set, he is worth at least twice what he is paid by the Federal government. He turns down job offers for twice what he is currently earning on a routine basis. My point is that while some public sector jobs pay more, not all of them do, and the highly skilled government workers are EXTREMELY underpaid when compared to their worth in the private sector.

      • badbob

        My wife, who is a registered nurse (RN) with a bachelors degree (BSN), pointed out that most of these recent public/private salary comparisons are comparing apples & oranges. Most federal nursing positions require a BSN – most private sector nursing jobs do not. Obviously, someone with a bachelors degree will be paid more than someone without one.

        I also note a certain amount of ‘cherry picking’ in terms of the professions selected for comparison – no one ever seems to include geologists, geophysicists, or engineers. I am a licensed professional geologist – when I began my career with Uncle Sam in 1981, I was payed approximately $12,000 per year. Industry wages at the time, for someone with my experience, were three times as much, or about $36,000 per year. And it has not gotten much better since then. Today, with approximately 30 years of professional experience, and even though I am paid more than most geologists employed by the federal government, I am barely matching the MINIMUM that a private sector geologist would earn after only 6-9 years of experience ( http://www.aapg.org/explorer/salarysurvey.cfm ). In fact, an industry geologist with my experience will earn, on average, TWICE what I am being paid by the federal government.

        In summary, these pay comparisons are extremely misleading. Many federal workers, including nurses, may be paid more because they are (at least on paper) more highly qualified than supposedly equivalent private sector workers; and others (including geologists, geophysicists, and engineers) are paid much less than people with equivalent experience in industry. My personal recommendation, based on several decades experience? If the government offers you a job, run like h@ll in the other direction…

  • Menlo

    According to them, public sector pay at the local and state levels is lower.

    Not that I trust CNN or BLS, but the data you link to for local salaries doesn’t have a valid reference.

    It’s not news the federal government generally does pay more, although I’m sure there are exceptions such as lawyers and those earning hundreds of thousands of dollars a year.

  • pquinn27

    The link fails to provide cites for the guts of your argument.

    Doctors, attorneys and other graduate level positions clearly make more in the private sector. Undoubtedly, public sector provides great benefits for some blue-collar and low-wage workers who would not otherwise have access to such benefits.

    I wonder, though, exactly what these salary comparisons factor in in the private sector. Certainly, there are no executives in the federal or state governments routinely making more that $250k/ year (although there may be some exceptions), whereas almost every officer or director of a private company makes this. Are public sector wages just so depressed that the vast majority of payrolls are for minimum wage or less?

    And, respectfully, it just does not make sense that the average federal wage could be $119,000. That is GS-15 money. The majority of federal wage earners just are not there. Take this at face value if you want, but I would prefer to see demonstrable facts first.

  • cabanon

    experience level in the job and government salary caps? Perhaps for some positions government hires workers with more years of experience as opposed to the private sector which hires all levels. Also in the private sector there is opportunity for some, not all, to make lots more money, there is far more competition but there aren’t limits to what one could make. In government jobs there are often salary caps.