A study in 2005 by the nonpartisan Employee Benefit Research Institute estimated that the average public-sector worker earned 46% more in salary and benefits than comparable private-sector workers. The gap has only continued to grow. For example, state and local worker pay and benefits rose 3.1% in the last year, compared to 1.9% in the private sector, according to the Bureau of Labor Statistics (BLS).Remember, we pay for those salaries and benefits.
But the real power of the public sector is showing through in this economic crisis. Some five million private-sector workers have lost their jobs in the last year alone, and their unemployment rate is above 9% according to the BLS. By contrast, public-sector employment has grown in virtually every month of the recession, and the jobless rate for government workers is a mere 2.8%. For anyone who thinks such low unemployment numbers are good news, remember that the bulging public sector must be paid for with revenues that most governments don't currently have. (emphasis added)
In addition to having recession-proof jobs and rich benefit plans, the public sector unions yield great political power. For example:
The Obama administration is threatening to rescind billions of dollars in federal stimulus money if Gov. Arnold Schwarzenegger and state lawmakers do not restore wage cuts to unionized home healthcare workers approved in February as part of the budget.California has a huge budget deficit, and unlike the federal government, cannot print money or issue debt to pay for their deficits. But it looks like they won't be allowed to cut public payrolls either, which will make it nearly impossible to get their deficits under control. Not to mention the philosophical issues with the federal government telling a state how to run their business...
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