Tag Archives: Parasite

Obama doubles the number of federal workers paid over $150,000

USA Today reports that the number of federal works earning $150,000 or more has DOUBLED since Obama took office.  (H/T Gateway Pundit)

Excerpt:

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.

The fast-growing pay of federal employees has captured the attention of fiscally conservative Republicans who won control of the U.S. House of Representatives in last week’s elections. Already, some lawmakers are planning to use the lame-duck session that starts Monday to challenge the president’s plan to give a 1.4% across-the-board pay raise to 2.1 million federal workers.

Meanwhile, the unemployment rate averaged 9.43% under Obama.

How public sector unions cause tax rates to increase

Let’s take a look at the UK economy after over a decade of rule by the socialist Labor party.

Here’s an article from the UK Telegraph about the pensions of unionized public sector workers.

Excerpt:

It is estimated that, on average, private sector workers would need to put 37pc of their salary into their pension to match the retirement income paid to a public sector worker on a similar wage, if you believe a report by accountants PricewaterhouseCoopers.

Even public sector workers on modest final salary schemes might be surprised to learn how much they would need to save if they were in the private sector.

To get the average civil service pension of £5,928 a year you would need a pension pot of £189,151. The average NHS pension of £6,931 is equivalent to a pension pot of £221,155 and the average teachers’ pension of £9,358 is equivalent to a pot of £298,596, according to Hargreaves Lansdown, the financial adviser.

[…]The figures showed that average total pay, including bonuses, in the private sector in February was £451 a week. Excluding bonuses it was £418 a week. In the public sector the corresponding figures were £462 a week and £459 a week. Public sector pay, on average, is also rising at twice the rate of private sector wages.

Government workers have pensions and salaries that are higher than in the private sector, and those costs have to be paid by private sector workers who actually generate revenue and pay taxes. Public sector employees don’t actually have to do any work for the most part, (excluding things like military, etc.). People only work when they have customers to please, who can choose them or choose a competitor. Government has no competitors, and so they really don’t need to work hard to please a customer.

Another UK Telegraph article explains who pays for public sector union pensions.

Excerpt:

By 2015, almost £10 billion of public money will be spent every year supporting the retirement of millions of public sector employees – up from £4 billion this year, the independent body said.

[…]In 2010-11, the amount spent by the taxpayer on public sector pensions will be £4 billion, rising to £5.5 billion the following year, the report said.

The cost will then rise, on average, by 20 per cent each year until the commitment reaches £9.4 billion in 2014-15. This equates to almost £400 for each of Britain’s 26 million households. The sharp increase, according to the Treasury, is a result of Britain’s ageing population.

[…]There are more than two million public sector workers receiving pensions from “unfunded” schemes.

The schemes are heavily supported by the taxpayer, with employees generally contributing less than their counterparts in the private sector.

And another UK Telegraph article explains how taxes on the productive private sector will have to rise to pay for the pensions.

Here’s one of several proposed tax increases:

We already know that [the capital gains tax] is due to increase, said Grant Thornton, although we don’t know what new rate or rates will be. “We do know that it will be more in line with income tax, so it could go up to 40pc, but the option of taxing up to the highest rate of 50pc has not been ruled out,” the firm said, adding that the measure was “likely to go down like a lead balloon” with investors with share portfolios and anyone with a second home.

Any raise to the capital gains tax is a direct assault on capital investment, and will damage the economy more than raising consumption taxes. The worst thing that you can do in a recession is to punish investors and private businesses. You end up losing jobs, which decreases your tax revenue even more.

And they are going to raise consumption taxes:

The Chancellor may face an “irresistible temptation” to increase the rate of VAT to 20pc now that he has had the opportunity to review the country’s books, said Grant Thornton. The standard rate of 17.5pc is relatively low relative to other EU countries and many economists predict a rise to 20pc, which would cost someone on average earnings about £150 a year.

That one will hit the poor as well as the rich.

And one last UK Telegraph article to explain how the recession has hurt men most.

Excerpt:

Malcolm Hurlston, chairman of the [Consumer Credit Counselling Service], said: “Men have been hard hit by the recession and are emerging as the new underclass. Debt alone is no longer the problem. It is loss of income and other rising costs.

“This deterioration in the economic circumstances for men, still the main breadwinner in most homes, has serious implications for many households.”

The charity said it had seen the number of men contacting it for help soar from 146,00 in 2007 to 221,000 last year, a 51pc jump.

It added that the number of women seeking help had increased by only half this amount over the period, although women were still more likely to contact it than men, accounting for 52pc of its caseload.

Men who contacted the charity during 2009 owed an average of £26,957, down from nearly £30,000 in 2008, but still significantly higher than the £21,915 that women typically owed.

The main reason men gave for getting into debt was a fall in their income, with this cited by 26pc, while 23pc said they had become unemployed or been made redundant. A further 20pc of men blamed their situation on overcommitting themselves on credit.

When one group of people vote themselves higher benefits without any additional productivity, some other group is going to be taxed to pay for it. And higher taxes lower incomes and produce unemployment. The UK is replacing working men with big government dependency.

If government is paying the piper, then government is calling the tune

Veronique de Rugy

Check out this post from GMU economist Veronica de Rugy on Big Government. (H/T ECM)

First, she puts up this chart.

Veronique writes:

On this chart we can see the changes over time in the composition of personal income in the United States since 1929. The most notable trend is the increase in the portion of personal income coming from government transfers (mainly social Security payments, unemployment benefits, food stamps, and personal and business tax credits.)  And the increase isn’t minor: the proportion of total personal income constituted by government money has grown from 0.9% to 17.2%.

Complementary decreases of wage earnings as percentages of total personal income (from 59.5% to 52.3%) are also going on.

The problem with government giving people money is that it creates a culture of dependency, as with Greece. Politicians take money from job-creating business-owners, or from productive individual workers, and they redistribute it to whiny unproductive, immature victim groups like unions, in order to buy their votes. Eventually, the government goes too far making promises and the productive people just stop or slow their working or they move away, since they keep less and less of their own money for the same amount of work and risk-taking.

And that’s when welfare checks of the losers dry up, and they have no choice but to riot and kill people. Why do they riot? Well, if they were earning their own money by working, then they would know that they are responsible for themselves, not government. They would understand that something might go wrong, and they would know that they had to cut their spending and save for a rainy day. So when things do go bad, they would have known how to live cheaply off of their savings while they find another job.

But people who take welfare don’t save – they think the money will always be there. What do they do when the taxpayers slow or stop production? They have no skills, and they have no savings. They can’t just find a new government because a new government isn’t going to find any more money from somewhere – there isn’t any left. So the only way to get their welfare back is to revolt – which is exactly what the socialists in Greece are doing right now. They’ve been spoiled rotten and they want their welfare back, like little babies crying for their mommies.

It’s sick. And this is what Obama and the Democrats idolize, because that’s how they grew up – begging their rich parents for money and bailouts for their own irresponsible behaviors. Their policies aren’t thought through – it’s just reliving their silver spoon childhoods of never having to work for anything.

Would you like to know what Republicans are like? Consider Michele Bachmann.

At 13, Bachmann was forced to become almost financially independent after her parents divorced. She used her babysitting money to buy her own clothes and lunches at school and saved up enough to purchase her first pair of contact lenses. Between college semesters at Winona State University, she took her hardworking streak to Alaska where on one memorable day she cleaned 280 salmon.

She also quit her job as a tax litigation attorney to homeschool her five kids, because she didn’t like the job the public schools were doing. Her business runs a small business, and she helped him to start it. That’s what Republicans do. We work. And we give.

We need to stop increasing the size of government so they can “take care” of all our needs. We need to take care of all our needs, and to take care of our neighbor’s needs, too. That’s capitalism. Having something to share from what you can make from your own industry and labor.