Ron Jones: More on public vs. private employees
I am a visitor and do not know Sirota’s style. He may mean to be glib, but this article is disingenuous if not dishonest. Bankers are not public employees and cannot be equated in pay scales. I have been a constant critic of the bailout of all these financial organizations. None were too big to fail. Great damage was done to our free enterprise system which is designed to reward success and fail risky and poorly managed business. All those bailed out have been rewarded and avoided losing their companies and big pay jobs.
Their million-dollars pay is the result of the government’s meddling in no downpayment loans and the monstrous growth of those inexplicable financial instruments and derivatives. This reckless growth hijacked the financial system. It was aided by Fannie and Freddie but abetted by the Fed’s easy money supply and enlargement to the point banks made so much money. Huge profits were reaped handling these mysterious derivatives in lieu of business loans and activity.
Contrary to what Sirota wrote, public employees are overpaid compared to private employees. He uses statistics not supported by most economists except where they are compared to CEOs, which is incomparable. But it is not their yearly pay but the way government unions have gamed the government pay system. The last year of employee pay is loaded down with years of sick leave compensation and overtime work until the $70,000 is raised to $150,000 and they retire at 3/4 pay. Their collective bargaining is also not comparable because the unions pay the government negotiators campaign contributions who then give them outrageous health and retirement benefits. It is an incestuous relationship and needs be eliminated.
The last paragraph, if not sarcasm, is illogical. He states a fallacy: “government exists to pad private profits” and concludes that is what “we should expect …” But it is true Obama and Democrats have meddled so in health, financial and auto operations through social engineering efforts I worry if this economy is repairable. It is not repairable until private business overcomes their doubt of 7,000 pages of new regulations, the Federal debt and trillions of wasted stimulus and begins to invest and hire.
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