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Government Creep: The share of U.S. income made up by the private sector hit a historical low earlier this year. The only real growth is in the public sector, which doesn't create wealth. This bad trend must be reversed.
An analysis of government data by USA Today found that "paychecks from private business shrank to their smallest share of personal income in U.S. history during the first quarter of this year."
That's only part of this sad story: "At the same time, government-provided benefits — from Social Security, unemployment insurance, food stamps and other programs — rose to a record high during the first three months of 2010."
If the share of private-sector pay is shrinking, income from government must necessarily be growing. Sure enough, during the first quarter, the federal government added 81,000 jobs while the private sector lost 4.71 million.
President Obama wants more. He's asked federal agencies to accelerate and streamline hiring of federal workers at a time when laying off bureaucrats would be the far better course.
Even before Obama began to push federal hiring, working for Washington was a lucrative career choice. In 2008, the typical federal worker took home on average $67,691 in salary compared with $60,046 for the private sector.
During the first 18 months of the recession, USA Today reported in December, "Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants — and that's before overtime pay and bonuses are counted."
Government workers have also avoided the job losses we've seen in the private sector. Their unemployment rate from 2007 to 2010 has been 3%; the rate across private industry has been 7.9%.
Federal workers aren't the only public employees who enjoy generous compensation. In 2009, the employer cost per hour for private sector businesses was $27.49 while the employer cost per hour in state and local government was $39.83 per hour, according to Bureau of Labor Statistics data. From 2006 to 2009, those costs grew 6.9% in the private sector, 9.8% in state and local government.
Shifting employment and pay toward the public sector from private enterprise can't last. A shrinking and underpaid private work force can't indefinitely support a growing host of bureaucrats.
Nor should it. Government is not a jobs program. Its duty is to protect constitutional rights — nothing more. Bureaucracy can't create wealth; it can't enlarge an economy.
The state threatens the economy and our individual freedoms when it begins meddling in voluntary, peaceful activities.
Leadership: New Jersey's tough new Republican governor is setting a national example for how to restore fiscal sanity. If only he had some spare time, Washington could sure use Chris Christie. 'Meet the new boss, same as the old boss," as the Who song goes, sure doesn't apply to the ...
Energy: An administration never enthusiastic about offshore drilling is using the Gulf oil spill as an excuse to suspend Arctic exploration. Who could've seen that coming? Now we'll be more dependent on foreign oil. Suspicions in some quarters that the administration was being deliberately ...
Accountability: Democrats have finally gotten around to blaming the Bush administration for the Gulf oil disaster. We wonder when this administration will take responsibility for anything. Asked on the "Imus in the Morning" program Tuesday on Fox Business Network if the Obama administration ...
In the midst of massive spending and the largest expansion of the federal government in decades, President Obama has created a Debt Commission to get our nation's fiscal house back in order. The irony of the president's action is noteworthy, but he does have good reason for concern. The fiscal year ...
One day Team Obama announces a plan for enhanced rescission authority to impound wasteful spending, and the next day the House surfaces a plan for $200 billion in "stimulus" spending on transfer payments for welfare, even more unemployment compensation, still more Medicaid, and a bunch of ...
Posted By: dwdrury(1550) on 5/28/2010 | 1:24 AM ET
Leona Helmsley is famously quote as saying, "Only little people pay taxes." Right before she went to jail for tax evasion. Why aren't Rangel and Geitner now occupying her former cell?
Posted By: Judith from Michigan(1705) on 5/27/2010 | 11:08 PM ET
A private sector economy can't be controlled, let alone tolerated. That would never do in the Socialist state being planned for the US. But, look on the bright side. Geithner, Rangel, & Co would be forced to pay their taxes so the other public parasites can be paid. Perhaps there will be justice after all.
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