In an article at Cato@Liberty.org, Chris Edwards reports the growing divide between Government Employees and Private Employees, when it comes to money.
You see, the average Federal Employee annual compensation package is just shy of $120K per year. The Private Sector? $59K.
It is not just the Feds that lavish employees with high wages and short hours, State Governments, City, Local, all over the country are faced with the ticking time bomb of Government Employees pensions and benefits.
Dennis Cauchon, reporting in USA Today, has done several articles, and reports, "State and local governments have set aside virtually no money to pay $1 trillion or more in benefits for retired civil servants...With bills coming due as Baby Boomers start to retire, states, cities, school districts, and other governments may be forced to raise taxes or cut benefits or both."
A "trillion or more...", then you add yet another 1.2 trillion for what the Feds have in unfunded civil servant retiree pay and benefits.
And retire they do. In style.
Government employees are retiring, with lots of your cash, if not your cash, then your IOU, or an IOU from your kids.
Stephane Fitch in a Feb/09 story in Forbes told about a forty two year old retired policeman in Florida, Richard Gross, retiring with a $65,000 pension for life. Also included are health benefits for the retired officer and his family, all benefits indexed to increase with inflation.
That little government employee golden parachute is worth a PHAT 2 million plus.
There are stories like that all over the country if you want to take the time and look for them. How about the Police Commander in Fort Worth, retiring in his fifties with a lifetime pension of $188K? Or the Drivers License Examiner in Illinois that retired in her fifties with a cool $117K a year.
You small business folks, how does that add up with your 401K? The City of Vallejo California declared bankruptcy not too long ago, citing pension problems at the heart of their financial woes. A Police Sgt. in Vallejo can retire in his/her fifties with a sweet little pension plan that will pay 'em 150K or more per year. Nice, if you don't have to pay for it.
Fitch goes on to say, "...the common perception is that public servants forgo high wages in exchange for safe jobs and benefits. The reality is they get all three. State and local governments get paid an average of $25.30 per hours, which is 33% higher than the private sector's $19, according to Bureau of Labor Statistics data. Throw in pensions and other benefits and the gap widens to 42%."
Now we add the Obama Administration's war against the private sector in America, and "we the people" have a big problem.
Don't think that what happens in Illinois doesn't effect us here. As the liberal states run out of money to appease the public employee unions, massive bills will come due, and these same government employees are going to be looking at you and me and demanding even more money.
Quite a voting block, public servants, and they seem to vote more and more with those who directly influence their pocketbooks. Can you say "conflict of interest"?
How can I say that? Just examine the public employees unions, and who they follow, who they support.
I am not against public employees, we just have too many of them. I think public employees should be paid well, but what kind of dummies are we, that we work night and day to pay the public employees far and away more than what we make? Why would we give them better pension plans than we have, and give them benefits guaranteed for life.
You, Mr/Ms Small Business Owner! What are your guarantees? You know what your guarantee is don't you? You are guaranteed to get stuck with a the bill. I hope you're ready, it's gonna be a whopper.