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Friday, March 26, 2010

John Edwards' "Two Americas" Alive and Well


John Edwards was right. As the WSJ points out, there really are two Americas - one for private workers, the other for government workers - and the disparity between pay is quite large and growing larger.
According to the U.S. Bureau of Labor Statistics (BLS), from 1998 to 2008 public employee compensation grew by 28.6%, compared with 19.3% for private workers. In the recession year of 2009, with almost no inflation and record budget deficits, more than half the states awarded pay raises to their employees.

...In 2008 almost half of all state and local government expenditures, or an estimated $1.1 trillion, went toward the pay and benefits of public workers. According to the BLS, in 2009 the average state or local public employee received $39.66 in total compensation per hour versus $27.42 for private workers. This means that for every $1 in pay and benefits a private employee earned, a state or local government worker received $1.45.

Something tells me that the reason private employees only make 65% of what a government worker earns is NOT due to job performance.