Government Spending: A Lesson in How to Go Bankrupt

Friday, November 12, 2010
By Paul Martin

By Bill Bonner
The DailyReckoning.com

11/11/10 Paris, France – As an institution matures, more people get a good grip on it. And take advantage of it. Typically, it is corrupted by its own custodians. Instead of serving its original purpose, it serves to enrich its managers and employees.

The wage slaves become the masters. The zombies take over. USA Today has the report:

The number of federal workers earning $150,000 or more a year has soared tenfold in the past five years and doubled since President Obama took office, a USA TODAY analysis finds.

FEDERAL WORKERS: Earning double their private counterparts

Federal salaries have grown robustly in recent years, according to a USA TODAY analysis of Office of Personnel Management data. Key findings:

•Government-wide raises. Top-paid staff have increased in every department and agency. The Defense Department had nine civilians earning $170,000 or more in 2005, 214 when Obama took office and 994 in June.
•Long-time workers thrive. The biggest pay hikes have gone to employees who have been with the government for 15 to 24 years. Since 2005, average salaries for this group climbed 25% compared with a 9% inflation rate.
•Physicians rewarded. Medical doctors at veterans hospitals, prisons and elsewhere earn an average of $179,500, up from $111,000 in 2005.
Federal workers earning $150,000 or more make up 3.9% of the workforce, up from 0.4% in 2005.

Since 2000, federal pay and benefits have increased 3% annually above inflation compared with 0.8% for private workers, according to the Bureau of Economic Analysis.

Some government employees provide good and useful service. Most probably work hard at jobs that aren’t worth doing.

The Rest…HERE

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