War is Coming-the Public vs. Government Workers
by Cliff Küle
Government workers are paid much better than workers are paid on “Main Street”. It is hard to justify higher government wages even if Main Street is healthy and vibrant. It will be impossible while Main Street is suffering, especially when that suffering is to pay for government that is deeply in debt. How can conflict be avoided when the workers who do the paying earn less than the workers they pay?
“Capitalism means free enterprise, sovereignty of the consumers in economic matters, and sovereignty of the voters in political matters. Socialism means full government control of every sphere of the individual’s life and the unrestricted supremacy of the government in its capacity as central board of production management.”
Ludwig von Mises (1881-1973)
The credit crisis is forcing consumers to cut back spending and pay back debts. See the chart below courtesy of David Rosenberg of Gluskin Sheff. The chart suggests that this process of “de-leveraging” has only just begun. Governments have moved debts from the private sector to the public sector, escalating the levels of public debt (public debt: a euphemism for the public’s burden). The debt has not disappeared. It has simply been moved from one “ledger” to another “ledger”. Banks and other special interests that are “too big to fail” have been saved from disaster by being “bailed-out” by governments. Who, in turn, will bail-out” the governments? Martians?