federal employees

Federal Employees Continue to Prosper

The Bureau of Economic Analysis has released its annual data on compensation levels by industry. The data show that the pay advantage enjoyed by federal civilian workers over private-sector workers continues to expand. This state of affairs is a thumb in the eye of the private sector, which continues to struggle with high unemployment. Many private sector employees have been forced to take pay and benefit cuts while continuing to fund generous federal employee compensation with their taxes.

Growth in Government Employment

The 1990s were a decade of rapid private sector expansion and federal government restraint. The 2000s are a decade of government expansion at all levels and private sector retrenchment.

From 1990 to 2000, private sector employment soared 21 percent. Then, remarkably, private sector employment actually fell during the 2000s and was 3 percent lower in 2010 than it was in 2000.

The chart shows the changes in government employment in these time periods.

Federal Pay Gap Reversed

I’ve long raised concerns about the rapidly rising costs of federal worker pay and benefits. Despite the obvious acceleration of federal compensation above private compensation in recent years, federal unions have continued to claim that federal workers suffer from a giant “pay gap,” which is currently supposed to be 26 percent.

King Canute, Abraham Lincoln, and Wishful Thinking

King Canute famously demonstrated to his advisers that even a king couldn’t stop the sea from rising. Abraham Lincoln told his visitors that calling a dog’s tail a leg doesn’t make it a leg. But lots of people these days think that passing a law automatically makes things happen, that you can pass a law against drug use or racism or homelessness and solve a problem.

Federal Salaries Explode

That’s the subject of a USA Today analysis, which reveals an outrageous increase in salaries at the top levels of the federal workforce. I’ve been complaining about excessive federal pay for some time based on one set of data, and now Dennis Cauchon provides strong support for my thesis using a different set of data.

FEHBP Plan Is No ‘Moderate Compromise’

Senate Majority Leader Harry Reid (D-NV) has announced that he has reached a super secret compromise on how to deal with the so-called public option for health reform.  While Reid said the agreement was too important to actually tell anyone what is in it, most of the details have been leaked to the press.

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