Wednesday, August 11, 2010

Inflation Part 3: Federal Workers

here's an excerpt from CBS article about Federal workers salary widening compared to the private sector.

(CBS) For those fortunate enough to have a job in this tough economy, there's a growing gap in salary between government employees and those who work for private companies.

While many Americans have suffered pay cuts or job losses, one group is bucking the trend: federal workers, CBS News Investigative Correspondent Sharyl Attkisson reports. A USA Today analysis finds that federal employees have gotten bigger pay and benefit increases than private employees for nine years straight.

"It made me think, man, I should be a federal employee," one woman said on the streets of the capital.

Federal salaries have grown 33 percent faster than inflation. Their pay and benefits averaged $123,049 in 2009, up 36.9 percent since 2000. Private workers averaged $61,051, up just 8.8 percent during the same time.

"So you have Wall Street, you have big oil and now you have federal civilians," said Tad Dehaven, a budget analyst for the Cato Institute.

And the bonuses are flowing. CBS News has learned taxpayer dollars funded $95.8 million in Transportation Security Administration bonuses last year, including a $35,400 bonus for the head of the agency.

"They're really overpaid," one man said on the streets of the capital.

Federal employees see things differently.

"I definitely don't think I'm paid too much," one such worker said.

Defenders of federal salaries say they reflect the higher skills and education often required for their jobs, and many are paid more because they've stuck with their jobs so long.

President Obama has ordered a freeze on bonuses for 2,900 political appointees and wants the smallest pay hike in more than a decade for two million other federal workers: 1.4 percent.

When I read about this I get kinda sad. The government should only be here to serve the people. But because government has gotten so big... people think they are entitled to the government and government employees think they are entitled to their high salaries. I guess my original post on inflation was a little bit pre-mature. Fed salaries are increasing higher than inflation... but if everyone and their mother works for the government and salaries reflect inflation... wouldn't that mean that whoever is calculating the inflation index is a bit off... or is it the other way around?

I also don't see where CBS got that 123k average salary and benefits from. Who knows, maybe I'm underpaid... CBS needs to list their sources. They're pulling some of these numbers out of thin air (I think) for some of these.

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