As the economy continues to shrug off the Billions of dollars in economic spending, it raises the question -- just what exactly is the answer? Well, that depends on who you poise that question to. A least a few patriots of the Right believe that President Obama has a grand plan to absorb the multitude of unemployed under the Federal umbrella as Federal employees.
So is there any data to support the position of the Right or simply more political rhetoric? Well, apparently the average salary of a Federal employee is $71,206 compared to $40,331 in the private sector. Additionally, purportedly, those earning the coveted six figure salary -- $100,000-- has increased from 14.4% to 19% during the recession! Moreover, there are more than 10,000 Federal employees earning $150,000 or more. Stunning stats huh. Maybe - maybe not, it's necessary to look at the entire picture before making that determination. A simple math calculation of the stated figures illustrates Federal salary spending increases amount to under $2 Billion annually. Even if you want to round it up to a nice even $5 Billion in Federal salary increases that is lunch money in comparison to the national GDP -- as well as the Federal budget for salaries. So does that advocate increased Federal salary spending during a recession? Well you would have to compare that the private sector, too, in order to make that determination. So what exactly has the private sector done in terms of reviving the economy since the recession began? ...well the votes are in and it's not looking good for the private sector. The fact of the matter is that the private sector hasn't done much. Well that's not entirely true...wages have decreased to a 30 year low, we are experiencing unprecedented long term unemployment, layoffs and job eliminations continue to rise albeit workplace production output continues to increase as well.
Making a case against the Feds stepping up for American workers during the Great Recession while the private sector reaps production output gains at the expense of job eliminations is a hard sell. Moreover, for those on the Right that have amnesia, maybe, perhaps they should be reminded of the untold Billions expended under the leadership of former President Bush. What's the difference in the scenarios? Well under the Bush era the Billions in Federal spending were directed to the elite such as former Vice President Cheney and the no bid contract awards to Halliburton. How about the Oil Bigwigs who still have their feet on the table with the back door deals under the Bush era? Conversely, the Obama administration appears to favor the average Joe Federal employee and working class individual.
The bottom line is that there is no free lunch and someone has to do something about the ailing economy. The President appears to be sending the message that if the private sector wants to exploit the economic situation than payment is going to made on the back in versus on the front. In other word, you pay now or you pay later...and judging by the way the credit industry works the private sector is better off paying up front versus paying later. In essence that means the private sector can pick up hiring and keep taxes at status quo and maybe even get a tax cut or continue with the exploitation charade and pay higher taxes on the back end. Decisions, decision, decisions. So maybe you can complain that Federal salaries increase while the economy drags it's feet, but hey somebody has to do something. Moreover, it's a fundamental principal that the Government should do what's best for the nation as a whole versus the single sided view of the private sector. So, to make a case against Federal spending on salaries -- to the private sector, the well over 15 million unemployed say -- show me the money or better stated show me the jobs. 