Monday, January 4, 2010

public sector prospers; private sector withers during the Bush/Obama-caused recession

Part of the problem...

From Dennis Cauchon in USA Today (hat tip: World)...

Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession's first 18 months — and that's before overtime pay and bonuses are counted....

The highest-paid federal employees are doing best of all on salary increases. Defense Department civilian employees earning $150,000 or more increased from 1,868 in December 2007 to 10,100 in June 2009, the most recent figure available.

When the recession started, the Transportation Department had only one person earning a salary of $170,000 or more. Eighteen months later, 1,690 employees had salaries above $170,000.

The trend to six-figure salaries is occurring throughout the federal government, in agencies big and small, high-tech and low-tech. The primary cause: substantial pay raises and new salary rules...

The growth in six-figure salaries has pushed the average federal worker's pay to $71,206, compared with $40,331 in the private sector....

Jessica Klement, government affairs director for the Federal Managers Association, says the federal workforce is highly paid because the government employs skilled people such as scientists, physicians and lawyers. She says federal employees make 26% less than private workers for comparable jobs.

There's surely some merit to her point, but it's notoriously difficult to make such comparisons. In any case, there's no good reason for raises in a low-inflation environment with a deep recession.


Then, there's this from Michael Barone at TownHall.com...

It looks like a happy new year for you -- if you're a public employee.

That's the takeaway from a recent Rasmussen poll that shows that 46 percent of government employees say the economy is getting better, while just 31 percent say it's getting worse. In contrast, 32 percent of those with private-sector jobs say the economy is getting better, while 49 percent say it is getting worse.

Nearly half, 44 percent, of government employees rate their personal finances as good or excellent. Only 33 percent of private-sector employees do.

It sounds like public- and private-sector employees are looking at different Americas. And they are.

Private-sector employment peaked at 115.8 million in December 2007, when the recession officially began. It was down to 108.5 million last November. That's a 6 percent decline.

Public-sector employment peaked at 22.6 million in August 2008. It fell a bit in 2009, then rebounded back to 22.5 million in November. That's less than a 1 percent decline.

This is not an accident -- it is the result of deliberate public policy....The policy aim, say Democrats, was to maintain public services and aid. The political aim, although Democrats don't say so, was to maintain public-sector jobs -- and the flow of union dues to the public-employee unions that represent almost 40 percent of public-sector workers. Those unions in turn have contributed generously to Democrats....

1 Comments:

At January 8, 2010 at 9:21 PM , Anonymous Anonymous said...

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