3 Reasons Public Sector Employees are Killing the Economy

As unemployment stubbornly sticks near 10 percent and any sort of economic recovery seems a long way off, think about this: The one part of the economy that's going gangbusters is government work. Indeed, since the Great Recession started in December 2007, over 8 million jobs have been lost in the private sector while the public sector has added at least 100,000 positions.

It's time to recognize that public-sector employment is killing the economy for at least three reasons:

1. They cost too much. As USA Today recently noted, federal employees make on average almost $8,000 more than their private-sector counterparts. When you add in benefits, the gap spreads to about $30,000. State and local government workers make around the same as private-sector counterparts, but their health and retirement packages mean they make significantly more in the end.

2. We can't fire them. The private sector has shed positions in response to slackening demand and the economic downturn. That sort of adjustment is painful but necessary, as it allows the economy to adjust to changing circumstances and workers and employers to move into new activities. Because it is guaranteed certain amounts of tax revenue and has a non-market mind-set, the public sector is largely insulated from such forces and keeps or even adds workers despite changed conditions. The result? We keep paying for things that we don't use, need, or want.

3. They create a permanent lobby for expanded government and higher taxes. Look at California, where teacher unions have spent over $211 million dollars on elections in the past decade. One result is that 40 percent of California's budget must be spent on education, regardless of the number and needs of students. Over the last 10 years, taxpayer contributions to public-sector pension funds has increased by 2000 percent!

Such sort of tax-based gladhanding is just getting started.

For the first time in history, the number of public-sector union employees is greater than those in the private sector, so expect to see even more lobbying for the sorts of mandatory raises and permanent job security that most of us can only dream of.

Because the public sector gets its pay and benefits from tax dollars and public debt, every thing it gets means there's less for the rest of us to save, invest, or pay workers with.

With the federal government and most states already neck-deep in red ink, it's time to cut public-sector pay and payrolls and return more money to the private sector. That will help spur the sort of investment and innovation that will get the economy moving and end the recession far faster than paying more and more money to government workers.

"3 Reasons Public-Sector Employees Are Killing The Economy" is produced by Meredith Bragg and Nick Gillespie, who also hosts.

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[Earthwalker40]

What? Ya'll don't think it's cool to employ and empower the communist party with taxpayer money? Ya'll are definitely a bunch of racist, sexist, homophobic bigots,lol.

[Earthwalker40]

Public sector unions must be abolished. They are nothing more than vampires, consuming more than what they give back.

Also the government needs to back off of small business. What the hell is the government gonna do when Americas best and brightest decide to gain citizenship somewhere else? Claim ownership over them? It has been tried before and has failed. Anyone remember the penalties for defecting from the soviet union?

Not to mention unions are all communist party members.

Wake the hell up.

[peopleofthecircle]

With the shrink of the economy and thus revenue, the unchanged pay and benefits have become unsustainable. With the housing crash, Stockton's (my hometown) revenue dropped 40% - benefits thus became 'outsized'. OK, now it is a core problem; not so minor.

[imallpissedoff]

"public sector union employees is a minor part of the problem."

How can that be? New York, California, Wisconsin, all technically bankrupted by public unions. That's what the whole Scott Walker battle was about.

[imallpissedoff]

"Ever hear of Bush'es housing market sector collapse recession?"

I'm no fan of Bush. He was Republican but not a conservative. But there is more to the economic problems that just Bush. The leftists, the bankers, and Bush, decided to give mortgages to people who could never afford them. They all knew what would happen. They also knew that the taxpayers would be forced too pay for it all.

[peopleofthecircle]

Workers get paid and a small amount goes to Unions and a small amount goes to political use - tiny compared to corporations. Since when is it wrong not to be conservative? Ever hear of Bush'es housing market sector collapse recession? Overpaid (they are) public sector union employees is a minor part of the problem.

[imallpissedoff]

Government workers, and union president slugs, like Duffy, certainly do. They donate huge amounts to left wing politicians, or any politician for that matter, and when they're puppet gets elected he reciprocates by giving the public unions huge salary, benefits, and pension packages that a private sector worker wouldn't believe.

What you're calling right wing spin is simply a fact.

CONGRATULATIONS! How's it feel to be a brainwashed useful idiot?

Now go spike your pension.

[peopleofthecircle]

Gov worker don't call the shot, government does. Self protection of worker rights is what it is, not about screwing anyone. I hate the Right wing spin.

[imallpissedoff]

Oh, this goes far beyond any one administration. FDR warned against allowing the formation of public unions because even he knew what would happen when government workers joined forces to screw the very people they were supposed to serve.

Now go votes yourself some more of my money, and don't forget to say, "it's all about the children."

[peopleofthecircle]

How convient to forget Bush's recession, but then Right wingers can selectivly believe or forget what they want.

[peopleofthecircle]

Bush's recession hurt the economy, not unions. Tea baggers have shite in their Tory bags - don't smoke the blaggards.