Pay Gap Widens Between Federal and Private Workers
My father always tells told me I should get a government job. I guess he is right! According to a report from CNN’s “Lou Dobbs Tonight”, the pay gap between pubic and private workers is exploding. (See video below)
The average compensation for federal workers has reached $116,450 vs. $57,615 a year for the average private worker. The main reason being federal workers continue to receive pensions and retiree health care benefits while private employers have reduced these benefits. Additionally, the difference in average compensation, which includes wages and benefits, between federal and private workers grew from 68% in 2000 to 102% in 2007.
The gap in pay is expected to continue to widen. Federal workers just received a 3.9% pay raise while private employers are freezing pay, cutting pay or laying off employees.
It’s ironic that the private companies pay the majority of taxes that pays federal employees. The federal government is not in the business of turning a profit so the pressure isn’t there to perform. When more money is required for federal agencies, the federal government can just raise taxes.
CNN: Pay Gap Between Federal and Private Workers
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7:35 pm on May 23rd, 2009
Yeah, I would agree that getting a government job at this point is a good idea. The problem is getting one. A good solid government job takes forever to get by then people usually flake out or get other jobs.
Rick Vaughn´s last blog post..Wealth is a Team Sport
4:18 pm on September 9th, 2011
I see this in a different light – how the heck can this be sustained?!? We are looking at loping off trillions in federal spending, local and state governments are in the hole, and there is little appetite for tax increases (especially with the diminishing impact on economic activity)? At what point does the tail wag the dog?
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