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Old 06-17-2010, 01:49 PM
 
2,832 posts, read 5,072,402 times
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Government Workers Cost More to Employ - Real Time Economics - WSJ
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Old 06-17-2010, 01:53 PM
 
Location: Sinking in the Great Salt Lake
13,145 posts, read 21,045,383 times
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I work for the government. That's why I'm always here on the forum.
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Old 06-17-2010, 04:20 PM
 
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Federal pay ahead of private industry - USATODAY.com (http://www.usatoday.com/news/nation/2010-03-04-federal-pay_N.htm - broken link)

Yep. When you're the government you can pay whatever you want, because the private sector is paying for it, duh!
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Old 06-17-2010, 08:11 PM
 
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public "servant", yea right. Its a bad sign though. The government produces nothing. They simply tax and transfer the wealth to other people. This is one of the major reasons why businesses are fleeing from the USA and moving overseas to jurisdictions that have a low regulation and low tax environment. I don't blame them!

Unfortunately, the government will continue to grow so long as the dollar holds its value. Once the value of the dollar beings to plummet at a high rate, then the government will soon be forced to have massive layoffs.
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Old 06-17-2010, 08:43 PM
 
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This is very sad indeed. I did interview with the DCAA back when I was looking for a job and it was offering better pay and benefits than the private sector job that I obtained. You're better off looking to get into gov than entering the private sector. Somehow that doesn't seem like how it should work.
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Old 06-17-2010, 08:49 PM
 
3,650 posts, read 8,728,559 times
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Quote:
Originally Posted by Chango View Post
I work for the government. That's why I'm always here on the forum.
lol

Frankly that study sounds like a huge oversimplification. eg I'm IT and I know IT pays a lot more "on the outside" vs gov't.
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Old 06-22-2010, 05:29 AM
 
3,852 posts, read 12,243,544 times
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Quote:
Originally Posted by joey2000 View Post
lol

Frankly that study sounds like a huge oversimplification. eg I'm IT and I know IT pays a lot more "on the outside" vs gov't.
Thats what you are made to believe.
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Old 06-22-2010, 08:58 AM
 
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No, he's right IT does pay a lot more outside than in the govt. I'm in IT and I keep an eye on local salaries both for govt and private sector, it's not even close. That said, total compensation it might be closer but it's really difficult to calculate the value of a pension versus someone with a higher salary stashing the extra away over a 40 year career since too many assumptions would have to be made about taxes, rate of return, etc.

There are MANY jobs where there is little doubt being a govt employee is better. For example there are administrative assistants in govt work with no college degree who max out on the payscale (making 50k +) by age 35 and retire in their early 50s with full pension and bennies. They aren't going to get anywhere near that being a file clerk or whatever in private, they'd be making $15/hour. Same with things like bus drivers, maintenance workers, etc.
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Old 06-22-2010, 09:11 AM
 
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They're comparing a predominantly white collar professional workforce with the broad spectrum of workers in the private sector.

If they compared the government workers' pay to those of the contractors, it would be a more accurate comparison.

A lot of the costs they attribute to the higher overhead for government workers are also legacy costs that will be there regardless of the size of the current workforce. They have to make excess contributions to make up for recent pension shortfalls.
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Old 06-22-2010, 09:18 AM
 
Location: Central Maine
4,697 posts, read 5,980,225 times
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Interesting article. On the plus side, they took into account all the costs associated with employing someone, from actual wages to all the benefits. And as the article says, the pay is less with the government.
The largest share of the costs comes from wages and salaries for both sets of workers: 70.6% for private employees and 65.9% for government workers. The rest of the payment comes in the form of benefits.
And those benefits?
It costs state and local governments $3.16 per hour to pay for employees’ retirement and savings plans, compared to 96 cents for private workers.
One of the BIG reasons people choose to work for the government is the retirement plan(s). Although these retirement plans are generally not as good as they once were, they tend to be better than those in the private sector (unless we're talking about "golden parachutes", and that just doesn't happen for the average working Joe).
Another $4.52 goes to health insurance for public workers, compared to $2.08 for private workers. And governments spend $3 per hour for its workers’ paid leave, compared to $1.88 for private workers.
And one of the other BIG reasons people seek out government jobs is the health insurance.

People aren't stupid. Government jobs are sought by those who are more than willing to give up a little in actual pay, but in return get much more in terms of retirement and health care. They make an informed and smart choice based on the total compensation.

On the negative side, I didn't see anything in the article to suggest that they looked at similar jobs in the public and private sector. A comparison of apples to apples, rather than the apples to oranges as found in this article, is far more informative.
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