Friday, 16. October 2009, 11:30:38
This article in The Economist talks of several things -- but there's one aspect of the economy, and of politics, which I've felt strongly about for a long time:
Many working-class men have lost their jobs. Those who are still employed have seen their wages stagnate and their pensions shrivel in the stockmarket crash. Their health insurance is insecure, but they don't trust Congress not to make it worse.
Meanwhile, they can see that one group of Americans has been practically unaffected by the recession: government employees. Their hours have not been cut, their benefits are gold-plated and they are almost impossible to sack. In good times, few Americans notice these things, but in bad times, the disparity grates. Cops and firefighters can retire in their 40s and draw defined-benefit pensions for life. With overtime, one tenth of the police in Massachusetts made more than the governor's annual salary in 2006, according to the Boston Globe. Including benefits, the average employee of New York City makes more than $100,000, according to Forbes, while some Californian prison guards “sock away $300,000 a year”.
And what do taxpayers get for their generosity? The bad bargains get all the publicity. Union contracts force the postal service to pay thousands of unneeded workers to do nothing. In New York, public-school teachers who can't be trusted to teach but can't be sacked either are paid to sit and do crosswords.
Check out your state's (and your town's or city's) statistics. How many government employees are there now versus a year ago? If your case is typical, you'll find that it's only down slightly -- if at all.
How's their pay? If your case is like most, they got a raise of about 4% -- because, after all, that's what they got last year, and it wouldn't be
fair for them to take a pay cut.
Did you take a pay cut? Are you even working?
Now check out your tax bill. Has that gone down?
You see where it's going. At what point do we tell our political leaders
"Enough!" Because until and unless we do, they won't take on the unions -- and you'll pay for it.