30 September 2009

US Civil War: Public Employees vs. Private Sector


The US Civil War of the 21st century is shaping up between the new privileged class -- public sector workers -- and the new oppressed and disadvantaged class, the private sector. A lot has changed since the old idea that public employees were overworked and underpaid.
Consider the lucrative lot of the men and women who work for Uncle Sam. In 2008, according to data from the Commerce Department’s Bureau of Economic Analysis, the 1.9 million civilian employees of the federal government earned an average salary of $79,197. The average private employee, by contrast, earned just $49,935. The difference between them came to more than $29,000 - a differential that has more than doubled since 2000.

Take account of total compensation - wages plus benefits - and the disparity is even more striking. In 2008, total federal civilian compensation averaged $119,982 - more than twice the $59,908 in wages and benefits earned by the average private-sector employee. Chris Edwards, a scholar at the Cato Institute, has documented the steady widening of the gap: In 1960, federal workers averaged $1.24 for every $1 earned by a private employee. By 1980, the federal advantage was up to $1.51; in 2000 it was $1.66. Now it is $2 - and climbing. When ranked alongside 72 industries that span the US economy, federal employees take home the seventh-highest average compensation. Among the workers they outearn, Edwards shows, are those in such fields as computer systems design, chemical products, and legal services.

It isn’t only at the federal level that the political class so handsomely takes care of its own. “State and local government workers get paid an average of $25.30 an hour, which is 33 percent higher that the private sector’s $19,’’ Forbes magazine reports. “Throw in pensions and other benefits and the gap widens to 42 percent.’’ The Tax Foundation calculates that “non-wage compensation’’ for the average state and local government employee worked out to $12,362 in 2007. For the average employee in the private sector, the comparable figure was just $8,784. _Boston
Government tends to grow as large as it can, until the peasants suffer enough to revolt. It may not be long until the private sector peasants of the US are ready to revolt, if the burgeoning Tea Party movement is any indicator.

US media and academia are essentially blind to this developing flash point, particularly the sinecured and tenured portion with guaranteed employment, generous benefits, and pensions. Until members of the media and academia are made to suffer in the way that large swathes of the private sector are suffering, their sympathies will be with their fellow sinecured comrades who happen to belong to public sector unions.

Economic Sentiment Indicator is declining

Economic recovery reality check

How retirement is changing for those not collecting government pensions

Free Enterprise Nation Channel on YouTube

Obama is becoming "The Albatross President." Obama is closely tied to both ACORN and the Chicago political machine -- both are corrupt and quasi-criminal enterprises. Obama promotes divisive racial policies which threaten societal cohesion at the worst possible time. Obama promotes a massive expansion of government into several areas of the previously private sector. Obama promotes a massive expansion of government debt -- he will add roughly $14 trillion to the national debt if he survives 8 years in office. Obama promotes an appeasement policy toward Russia, Iran, Venezuela, and any other bloody dictator he can hobnob with.

There really is no up side with the Clown President. You'd better start thinking up some workarounds, because otherwise the government is going to choke you into oblivion. Of course, having killed the private sector, the government has nowhere to go but Zimbabwe.

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“During times of universal deceit, telling the truth becomes a revolutionary act” _George Orwell

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