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February 10, 2012
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Mark Clayton: How did Anonymous hackers eavesdrop on FBI and Scotland Yard?
February 3, 2012
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Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
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Emily Brandon: How to Take Advantage of New 401(k) Fee Disclosures
January 31, 2012
January 30, 2012
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Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
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Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
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Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
Ed Koch: To the New York Times, calling for the murder of Jews by those capable of having their incitement taken seriously isn't news
Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
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Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
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Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
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Ali Safi: U.S. envoy gives Taliban terms for peace talks
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Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
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January 13, 2012
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January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
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John Fauber : Statins found to raise diabetes risk in postmenopausal women
Katy Hopkins : Consider This Before You Pay for an Online Degree
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January 11, 2012
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Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
Karen Kaplan: Study: Nicotine replacement products ineffective when used in real-life situations
January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
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Jewish World Review
Oct. 1, 2009
/ 13 Tishrei 5770
The myth of the underpaid public employee
By
Jeff Jacoby
http://www.JewishWorldReview.com |
THOUGH IT HASN'T BEEN TRUE for years, many people believe that government employees receive such lavish employment and retirement benefits in order to compensate for their meager paychecks. The reality is that their paychecks aren't meager at all: Government jobs pay more than those in the private sector, and the difference between the two is growing.
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 $151; 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.
Americans increasingly fall into one of two camps. Those who work for the government about 15 percent of the labor force tend to enjoy sumptuous perks, virtually indestructible job security, early retirement, and pensions that are guaranteed for life. The rest of us the vast majority work in the private economy, where millions of jobs can be wiped out by a recession, where defined-benefit pensions are disappearing, and where competition and downsizing are harsh facts of life.
This is not to deny that particular government jobs may be underpaid when compared with private markets, nor to suggest that many public workers are not diligent and hardworking. All the same, a backlash is coming, and it gets closer with each new revelation of public employees enriching themselves at taxpayer expense. Employees like the double-dipping Florida college president who took a lump sum "retirement" benefit of $893,286 and receives a $14,631/month pension, yet continues to collect an annual salary of $441,538. Or like the former Massachusetts lawmakers who qualified for tens of thousands of dollars in enhanced pensions many while still in their 40s merely by resigning from the legislature. Or like the Buffalo, N.Y., police detective who is serving a 45-year sentence for setting up drug raids in order to steal money and jewelry, but still receives an annual pension of more than $40,000.
A full-page ad in The Wall Street Journal last week was the clearest evidence yet of the approaching showdown. "We are the Private Sector. And we've had enough," the ad proclaimed. It announced the launch of The Free Enterprise Nation, which describes itself as the first national organization intended to represent the interests of the majority of Americans who work in the private economy. Its message was blunt: "The private sector provides pay and benefits for public sector workers that we cannot afford to provide for ourselves. . . . We need to change public policy."
The Free Enterprise Nation online at TheFreeEnterpriseNation.org is headed by James MacDougald, a successful Florida businessman who has invested more than $1 million in the organization. Already he has assembled a staff of 65, including 10 researchers. He foresees the day when the group will be as influential as the AFL-CIO, and when government officials never make a move without considering its impact on the private sector.
"We're going to generate enough noise that government can't ignore us," he told me yesterday. "We aren't going away." Stay tuned.
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
Jeff Jacoby is a Boston Globe columnist. Comment by clicking here.
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