It is painfully apparent that the average American family has lost economic ground over the past ten years.
Even those fortunate enough not to have lost their jobs or homes are likely earning less, after inflation, than they did in 2001.
Between 2007 and 2009 alone, the inflation-adjusted income of the median U.S. household fell 4.2 percent.
That’s why the average U.S. taxpayer can no longer pay for a federal workforce that has actually grown during the worst recession since the Great Depression.
The number of federal employees earning salaries over $100,000 “exploded during the recession,” according to an analysis of federal salary data done by USA Today.
The proportion of federal employees earning six-figure salaries jumped from 14 to 19 percent during the first 18 months of the current recession. That’s nearly one in five employees.
Incredibly, Defense Department civilians earning more than $150,000 skyrocketed from 1,868 in 2007 to 10,100 in June 2009, according to USA Today.
Federal workers now earn between 30 and 40 percent more in total compensation, which includes wages and benefits, than private-sector employees, according to a report released in July by The Heritage Foundation.
While private employers pay on average $9,882 in benefits to each employee, the federal government pays an average of $32,115 for everything from health benefits to student loan forgiveness to retirement contributions.
The recession, meanwhile, has posed little threat to government-sector jobs.
Between 2007 and 2010, federal employment has increased 12.2 percent. Private employment, meanwhile, has dropped 6.8 percent, according to the Heritage Policy Center report.
Unemployment among federal employees is 2.9 percent compared to nearly 10 percent for the civilian workforce.
It has been argued for years that government workers could earn more in the private sector.
Yet, federal workers rarely leave government employment. The annual voluntary turnover rate for federal workers is one half of one percent. In the private workforce it is 2.5 percent.
The deficit reduction panel chairmen, appointed by President Barack Obama, hit the nail on the head in their recent recommendations.
The co-chairs, Alan Simpson and Erskine Bowles, say we cannot afford the government we have now and, among many other government cuts, recommend the following:
* a three-year freeze of federal salaries, bonuses and other compensation;
* a reduction of 10 percent of the federal workforce, about 200,000 positions;
* a freeze on health insurance fees for federal civilian retirees;
* a freeze on noncombat military pay at 2011 levels for three years; and
* basing civil service retirement pay on the five highest years of service instead of three and increasing the retirement contributions of federal employees.
Over the past 10 years, the average private worker has seen pay freezes, pay cuts, elimination of pension benefits, cuts in 401(k) matches, and increases in health care contributions.
In effect, only the top 10 percent of earners in this country are earning more, on average, than they did ten years ago.
Simply put, a poorer citizenry can no longer support an entitled army of federal workers.
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