Whatz new here? Like most large industries, the federal government, local and city to, has a huge number of employees that 'take the money and run'. That is, they are there just for the money. They scam the system as much as they can to get by with as little effort as possible. And being the government, scamming is easier than in larger corporations where they have efficiency requirements to meet.
The problem here then is the system is to large and therefore uncontrollable, and the only way to have any semblance of organization is to put the system on autopilot. Managers in the system, for the most part, are no better than the general employees as they have the same tendency to be unqualified for their jobs because they were promoted through longevity or just promoted through the 'good old boy' system.
The solution is to shrink the government to a size that is controllable.
Government Pay Is Inflated
Source: James Sherk, "Federal Compensation: Why Government Pay Is Inflated," Heritage Foundation,January 12, 2012.
In a new report, James Sherk, a senior policy analyst in labor economics at the Heritage Foundation, explores federal compensation by comparing it to market rates, and considering its policy concerns and economic effects.
How Does Federal Compensation Compare to Market Rates?
The average federal employee earns 57 percent greater cash pay and 85 percent greater total compensation (which includes benefits) than the average private-sector worker.
Controlling for observable skills and characteristics, the federal pay system gives the average federal employee hourly cash earnings 22 percent above the average private worker's. Including benefits raises the average compensation disparity to between 30 and 40 percent.
Despite these average pay differences, many federal employees are not overpaid. The General Schedule does not connect pay with performance. Many of the hardest-working and most highly skilled federal employees receive at- or below-market compensation.
Federal employees demonstrate with their actions that they receive better compensation in the public sector than in the private sector: They quit their jobs at one-third the rate of private employees.
Policy Concerns
Many federal employees retire in their late 50s, collect their pension and retiree health benefits, and then take a second job in the private sector, leaving taxpayers to subsidize this double-dipping.
It would be better to scrap the General Schedule, under which workers automatically receive step and grade increases in pay, and move to a performance pay system with federal pay tied to market rates and market signals of labor demand.
Economic Effects
Reducing federal pay to market rates would save taxpayers approximately $47 billion per year.
This reduces the deficit without reducing public services. This also frees up more resources for private businesses to save and invest, expanding the economy and creating more jobs.
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