MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘private sector’

Want to Make Money? Work for the Government

Posted by M. C. on May 8, 2019

When did you last go to the government for a service you truly wanted or needed? Not forced through regulation?

You may need a passport but that is because government mandates its existence, that you apply, supply documentation and pay for it.

Government – Paying its employees well for the privilege of making life more expensive and difficult for those who are useful, productive and/or just want to be left alone.

https://www.cnsnews.com/commentary/terence-p-jeffrey/want-make-money-work-government

By Terence P. Jeffrey

Which class of full-time, year-round American workers has the highest median earnings? Is it the class that works for private-sector employers? Is it the class that works for the government? Or is it the entrepreneurial class, those of whom employ themselves?

According to the Census Bureau Personal Income Table 07 (PINC-07), the competition isn’t close. When it comes to making money in the modern United States of America, government workers win.

Among Americans who actually earn income by working, they are the upper class.

In 2017, according to PINC-07, there were 115,704,000 Americans who worked full-time (at least 35 hours per week) and year-round (at least 50 weeks in the year). The table divides these workers into three general classes: “private wage and salary workers,” “government wage and salary workers” and “self-employed workers.”

Of the full-time year-round workers, 88,296,000 were private-sector employees; 17,617,000 were government employees; and 9,750,000 were self-employed. (Another 42,000 were classified as “unpaid family workers.”)

The overall median earnings for all of these full-time year-round workers in 2017 were $48,500.

Workers in private industry, however, made less than the overall median. Their median earnings were $46,797.

The self-employed did a little better than the national rate. Their median earnings were $50,383.

But government workers did the best. Their median earnings were $53,435.

That was 14.2 percent better than private-sector workers and 6.1 percent better than the self-employed…

Be seeing you

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The Shutdown Shows Us How Unreliable and Harmful Government Can Really Be | Mises Wire

Posted by M. C. on February 2, 2019

https://mises.org/wire/shutdown-shows-us-how-unreliable-and-harmful-government-can-really-be

They document some of the problems due to the government shutdown. However, long wait times at airport security, problems providing food stamps, difficulties with affordable housing contracts expirations, meeting payrolls, etc., etc., do not disprove that “government is the problem.”

To illustrate this, remember that there are many things the government does that it has no business doing. Say one of them was creating a bureaucracy that had the power to decide on issuing “free speech” permits, which they sold to those approved to speak on particular public issues (you might think that could never happen, especially given the First Amendment, but it is not so different from the effects of the fairness doctrine for broadcast radio before the Reagan administration eliminated it) or that administered the civil asset forfeiture abuses of their citizens. Neither advances our general welfare. Neither comports with the logic or core documents of America’s founding. Yet people would adapt to the rules they were faced with, and their expectations would come to incorporate them. If at that point, a government shutdown shut off funding to those bureaucracies, those disappointed expectations would cause people difficulties. Complaints on that score, however, do not demonstrate that such government functions will be considered more valuable than before as a result.

Crowding Out the Private Sector

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EconomicPolicyJournal.com: The Government Shutdown and The Fallacy of the “Public Sector”

Posted by M. C. on January 22, 2019

http://www.economicpolicyjournal.com/2019/01/the-fallacy-of-public-sector.html#more

Below is a reprint of a Murray Rothbard essay particularly relevant at this time of the partial government shutdown. It was originally appeared in the New Individualist Review (Summer, 1961)

The Fallacy of the “Public Sector”
By Murray N. Rothbard

We have heard a great deal in recent years of the “public sector,” and solemn discussions abound through the land on whether or not the public sector should be increased vis-à-vis the “private sector.” The very terminology is redolent of pure science, and indeed it emerges from the supposedly scientific, if rather grubby, world of “national-income statistics.” But the concept is hardly wertfrei; in fact, it is fraught with grave, and questionable, implications.

In the first place, we may ask, “public sector” of what? Of something called the “national product.” But note the hidden assumptions: that the national product is something like a pie, consisting of several “sectors,” and that these sectors, public and private alike, are added to make the product of the economy as a whole. In this way, the assumption is smuggled into the analysis that the public and private sectors are equally productive, equally important, and on an equal footing altogether, and that “our” deciding on the proportions of public to private sector is about as innocuous as any individual’s decision on whether to eat cake or ice cream. The State is considered to be an amiable service agency, somewhat akin to the corner grocer, or rather to the neighborhood lodge, in which “we” get together to decide how much “our government” should do for (or to) us. Even those neoclassical economists who tend to favor the free market and free society often regard the State as a generally inefficient, but still amiable, organ of social service, mechanically registering “our” values and decisions.
One would not think it difficult for scholars and laymen alike to grasp the fact that government is not like the Rotarians or the Elks; that it differs profoundly from all other organs and institutions in society; namely, that it lives and acquires its revenues by coercion and not by voluntary payment. The late Joseph Schumpeter was never more astute than when he wrote, “The theory which construes taxes on the analogy of club dues or of the purchase of the services of, say, a doctor only proves how far removed this part of the social sciences is from scientific habits of mind.”1…

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Furloughed Federal Employees are Still Paid More Than You | Mises Wire

Posted by M. C. on January 15, 2019

Federal civilian workers with no more than a high school education earned 34 percent more, on average, than similar workers in the private sector.

https://mises.org/wire/furloughed-federal-employees-are-still-paid-more-you

Whether its CNBC, or The New York Times, or NPR, the mainstream media is clearly committed to using the current partial government shutdown to portray federal workers as beleaguered victims of the American political system.

But, in all cases I’ve encountered, these reports neglect to mention that on average, civilian federal workers make 17 percent more than similar workers in the private sector, according to a 2017-2018 report by the Congressional Budget Office. That’s total compensation, so we’re including both wages and benefits.

Considering that a year is 52 weeks long, an average federal worker would need to be completely without any income for nearly 9 weeks in order to just be reduced to equal standing with a similar private-sector worker. (17 percent of 52 weeks is 8.84 weeks.)

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Source: Congressional Budget Office.

As of this writing, the current shutdown has only lasted three weeks, which means all those furloughed workers profiled in national news stories are likely still coming out ahead of their private-sector colleagues. Read the rest of this entry »

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