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Dead Constitution
See other Dead Constitution Articles

Title: Federal workers earning double their private counterparts
Source: USA Today
URL Source: http://www.usatoday.com/money/econo ... 2010-08-10-1Afedpay10_ST_N.htm
Published: Aug 11, 2010
Author: Dennis Cauchon
Post Date: 2010-08-11 16:37:22 by F.A. Hayek Fan
Keywords: None
Views: 819
Comments: 78

At a time when workers' pay and benefits have stagnated, federal employees' average compensation has grown to more than double what private sector workers earn, a USA TODAY analysis finds.

Federal workers have been awarded bigger average pay and benefit increases than private employees for nine years in a row. The compensation gap between federal and private workers has doubled in the past decade.

Federal civil servants earned average pay and benefits of $123,049 in 2009 while private workers made $61,051 in total compensation, according to the Bureau of Economic Analysis. The data are the latest available.

The federal compensation advantage has grown from $30,415 in 2000 to $61,998 last year.

Public employee unions say the compensation gap reflects the increasingly high level of skill and education required for most federal jobs and the government contracting out lower-paid jobs to the private sector in recent years.

"The data are not useful for a direct public-private pay comparison," says Colleen Kelley, president of the National Treasury Employees Union.

Chris Edwards, a budget analyst at the libertarian Cato Institute, thinks otherwise. "Can't we now all agree that federal workers are overpaid and do something about it?" he asks.

Last week, President Obama ordered a freeze on bonuses for 2,900 political appointees. For the rest of the 2-million-person federal workforce, Obama asked for a 1.4% across-the-board pay hike in 2011, the smallest in more than a decade. Federal workers also would qualify for seniority pay hikes.

Congressional Republicans want to cancel the across-the-board increase in 2011, which would save $2.2 billion.

"Americans are fed up with public employee pay scales far exceeding that in the private sector," says Rep. Eric Cantor, R-Va., the second-ranking Republican in the House.

Sen. Ted Kaufman, D-Del., says a pay freeze would unfairly scapegoat federal workers without addressing real budget problems.

What the data show:

•Benefits. Federal workers received average benefits worth $41,791 in 2009. Most of this was the government's contribution to pensions. Employees contributed an additional $10,569.

•Pay. The average federal salary has grown 33% faster than inflation since 2000. USA TODAY reported in March that the federal government pays an average of 20% more than private firms for comparable occupations. The analysis did not consider differences in experience and education.

•Total compensation. Federal compensation has grown 36.9% since 2000 after adjusting for inflation, compared with 8.8% for private workers.

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Begin Trace Mode for Comment # 49.

#1. To: F.A. Hayek Fan (#0)

it is true. Federal workers are paid very well, much better than the private sector.

There was a time when the difference between public sector & private sector compensation levels was much smaller. I think the private sector has been absorbing downward movement in its compensation levels for decades. But the decline in the private sector paychecks has accelerated dramatically in the last 10 years.

Consider the following. One thing that always set us apart as a nation was that our ordinary people were wealthy compared to the ordinary people of other nations. This is how it was in the late 1600's. Americans in the year 1700 were by far the richest people on earth when you consider the ordinary person's ability to get by. Our poor people were rich compared to europe's middle income people in 1700. In the late 1700's Benjamin Franklin contrasted the french standard of living to the American standard of living and said that the french were by comparison extremely poor.

But a study showed that our poorest 10% are now poorer than the poorest 10% in 22 other nations. Throughout our whole history we were #1 in that statistic. Until just 10 years ago. We're dropping like a rock and our people aren't even aware of how bad the drop is.

Red Jones  posted on  2010-08-11   17:13:48 ET  Reply   Untrace   Trace   Private Reply  


#3. To: Red Jones (#1)

deleted

Eric Stratton  posted on  2010-08-11   17:22:17 ET  Reply   Untrace   Trace   Private Reply  


#4. To: Eric Stratton (#3)

yes.

and if we start thinking about adjusting those federal salaries downward, then we should at least be cognizant of the fact that when we lower their salaries & benefits we would also be destroying part of our nation's economy & tax base. Like it or not when any segment of our economy is destroyed for any reason, then there is a multiplier effect in that it ends up taking down more as people spend less than what they otherwise would've spent.

Some people in our society have made the idea of 'protectionism' to be thought of as a bad idea. But we need to protect our economy. Instead of thinking about de-funding our economy, we should be thinking about funding it.

When we fund government by borrowing massively, then we are creating a future expense that we cannot afford. I read the government is going to borrow $2 trillion to fund the deficit spending of just one year. And the government only spends $3 trillion. Deficit spending went up to almost $1.5 trillion in the last year of the Bush admin, I remember reading an article that said CBO predicting that it would be that way in the last year of the Bush admin and also every year after that.

Borrowing money on this scale is suicidal. We should renounce the debt. The lenders will survive. They were stupid to lend it. When you lend on this scale it is not reasonable to think you'll be paid back.

It is a sovereignty battle. Who is sovereign? The government or the bankers? Government should assert its authority, slap the banks down and create its own money to fund spending that must be done to keep our economy going. If government created currency from thin air and invested massively in infrastructure projects, then our economy could get back to 'normal' quickly.

Many people argue that government should not create money because it will create too much and thus cause inflation. But the federal reserve is well known for facilitating rapid money supply growth. The idea that government is unfit compared to the federal reserve is dysfunctional. The federal reserve has gotten us into this mess. Government should take back that power.

In the 1800's we had almost no inflation for the entire century. Money was sound and stable. That was prior to when we enabled the federal reserve in 1913.

Red Jones  posted on  2010-08-11   17:36:14 ET  Reply   Untrace   Trace   Private Reply  


#45. To: Red Jones (#4)

It is a sovereignty battle. Who is sovereign? The government or the bankers?

Neither. The states are sovereign.

farmfriend  posted on  2010-08-12   1:29:33 ET  Reply   Untrace   Trace   Private Reply  


#49. To: farmfriend (#45)

It is a sovereignty battle. Who is sovereign? The government or the bankers?

Neither. The states are sovereign.

and if you really think that our 50 states are sovereign anywhere, then you are living in a dream-world. Our federal government dictates to all of the states. It decides how much to tax, it collects taxes within the states, the federal government controls the military, even the various state militias are today 100% controlled by Washington, reforms were made in the Bush admin to take all power from states concerning their state militia or national guards. The 50 states don't coin money either.

In Washington they decide that every single school in America will hire a psychiatrist. If a school fails, they have their funding cut by the Washington bureaucracy called Department of Education. If the psychiatrist does not put children on drugs according to a schedule made in Washington, then the psychiatrist is deemed by the people in washington to not be doing his/her job and funding for the school is cut.

State lawmakers don't even decide how most of each state's tax revenues are spent. The federal government dictates to them so strongly.

It is your dream that the 50 states should be sovereign. Abraham Lincoln sent 80,000 armed soldiers into Virginia for the purpose of killing Virginians because the Virginians thought that their state's government was sovereign.

Banks have usurped sovereignty from our federal government. and the states are totally dictated to. But the big banks dictate to our federal government. This is our reality.

Red Jones  posted on  2010-08-12   7:26:15 ET  Reply   Untrace   Trace   Private Reply  


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