Government – The Only Recession Proof Business
August 25, 2009
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Posted by Michael S. Langston
As we continue to watch the health care debate go around you might have noticed many politicians perplexed at the idea that the public might not want a public option.
I submit, that it has nothing to do with President Obama, the current Congress, the Current House, nor the prior President, Congress & House.
The reasoning is analogous to the Sorites Paradox. The paradox states it’s impossible to know exactly how many grains of sand it takes to become a heap, or once a heap, how many grains of sand must be removed to become a non-heap. I submit we have finally built a heap.
With the bailouts, stimulus packages, rampant spending of the prior President and continued fiscal irresponsibility of this administration, combined with fiscal irresponsibility at state & local levels, people are rightfully frustrated.
& thanks to Cato, within a week, they have two brilliant demonstrations as to why:
Federal Pay Continues Rapid Ascent:
…Figure 1 looks at average wages. In 2008, the average wage for 1.9 million federal civilian workers was $79,197, which compared to an average $49,935 for the nation’s 108 million private sector workers (measured in full-time equivalents). The figure shows that the federal pay advantage (the gap between the lines) is steadily increasing….
Figure 2 shows that the federal advantage is even more pronounced when worker benefits are included. In 2008, federal worker compensation averaged a remarkable $119,982, which was more than double the private sector average of $59,909….
& this, State and Local Government Employment Up Since Recession’s Start:
…With a prolonged recession now forcing state and local governments to actually cut or furlough some employees, it’s important to remember that they were adding government jobs at a time when it was clear to the rest of the country that the air was out of the economic bubble. ..
It seems the age old question about what business is truly recession proof finally has an answer.
Categories: Economics, Politics, free market
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Tags: Congress, Economics, Free Market Principles, Government Employees, government spending, Obama Administration, Recession
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