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The Ramifications of Higher-Paying Government Jobs


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American Thinker:

This lackluster economy of the past few years hasn't been bad for everyone. Sure, millions of Americans have lost their jobs in manufacturing facilities, technology companies, and throughout a plethora of large corporations and small businesses. Yes, states such as Nevada and Florida have experienced atrocious declines in their housing markets, and many states have seen the incomes of their residents actually fall over the past few years.

But not in Washington, D.C., as these are merry days under President Barack Obama. After all, according to Census data collected by CNN Money, it is none other than Washington, D.C. that has seen its median household income rise by 12.1% from 2007 through 2010. Of course, it should come as no surprise that during a time of unprecedented and reckless government spending, the best chance that a family has for its income to rise is to live in the nation's capital.

The total number on the federal government payroll has certainly increased under Obama -- about 144,000 from January 2009 through January 2011. But the bigger issue is that these employees, whether they work outside or within Washington, D.C., tend to benefit from higher salaries than their counterparts and salaries that increase proportionately more than comparable private-sector positions. In addition, with pay freezes or limited salary increases across many companies, the wage gap between the haves and have-nots -- that is, between the federal employee and the private-sector employee -- has widened over the past few years. This is an alarming trend, and it could be detrimental to the United States in the coming years.

In fact, according to research conducted by The Heritage Foundation, the actual wage gap is 8% in favor of the federal government employee versus the comparable private-sector employees at the onset of his or her new position, whatever that might be. Worse yet, the gap tends to widen to some 14% throughout the person's career, according to a study by the American Enterprise Institute.

These are staggering gaps. Consider a private-sector employee who makes $100,000 per year. His mirror-image government employee earns $114,000 per year. Assume that the salary for each is frozen over a ten-year period. The total earnings gap for that period would equal $140,000 in gross compensation.snip
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These are staggering gaps. Consider a private-sector employee who makes $100,000 per year. His mirror-image government employee earns $114,000 per year. Assume that the salary for each is frozen over a ten-year period. The total earnings gap for that period would equal $140,000 in gross compensation.

 

Ha.... 10x 14K = $140K.... glad the reporter was kind enough to assume it was frozen and then do that x10 multiply for the reader.

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These are staggering gaps. Consider a private-sector employee who makes $100,000 per year. His mirror-image government employee earns $114,000 per year. Assume that the salary for each is frozen over a ten-year period. The total earnings gap for that period would equal $140,000 in gross compensation.

 

Ha.... 10x 14K = $140K.... glad the reporter was kind enough to assume it was frozen and then do that x10 multiply for the reader.

 

The target audience must be the Occupiers.

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