Tag Archives: Public Sector

After $862 billion stimulus, Obama is still 9 million jobs short of his target

Remember why Obama passed the stimulus bill? To create jobs!

The Heritage Foundation explains how Obama is 9 million jobs away from his promised target.

Excerpt:

When Obama made his 3.5 million jobs promise, employment stood at about 135.1 million according to the Department of Labor’s most commonly used measure. This establishes the Obama jobs target for December 2010 at 138.6 million. It also establishes a basic trajectory for employment the economy would need to approximate to hit that target.

According to the latest jobs report, total U.S. employment fell to 129.5 million in January, which means the cumulative Obama jobs deficit–the difference between the end target and the current employment level–stands at 9 million.

[…]The theory underlying Obama’s stimulus was that the economy was weak because total demand was too low. The suggested solution is then to increase demand by increasing the budget deficit. This theory of demand manipulation through deficit spending ignores the simplest of realities: Government spending must be financed. So to finance deficit spending, the government must borrow from private markets, thereby reducing private demand by the same amount as deficit spending increases public demand.

Government spending takes money out of the productive private sector, either by taxes or inflation. But it is the private sector, especially small businesses, that creates the most new jobs. The stimulus plan was doomed to failure.

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Rhode Island superintendent fires entire staff at unionized public school

Story here on Business Insider. (H/T Hot Air)

Excerpt:

A school superintendent in Rhode Island is trying to fix an abysmally bad school system.

Her plan calls for teachers at a local high school to work 25 minutes longer per day, each lunch with students once in a while, and help with tutoring.  The teachers’ union has refused to accept these apparently onerous demands.

The teachers at the high school make $70,000-$78,000, as compared to a median income in the town of $22,000.  This exemplifies a nationwide trend in which public sector workers make far more than their private-sector counterparts (with better benefits).

The school superintendent has responded to the union’s stubbornness by firing every teacher and administrator at the school.

ECM sent me this article about New Jersey earlier this week, which ruined my entire Monday.

Excerpt:

One state retiree, 49 years old, paid, over the course of his entire career, a total of $124,000 towards his retirement pension and health benefits. What will we pay him? $3.3 million in pension payments over his life and nearly $500,000 for health care benefits — a total of $3.8m on a $120,000 investment. Is that fair?

A retired teacher paid $62,000 towards her pension and nothing, yes nothing, for full family medical, dental and vision coverage over her entire career. What will we pay her? $1.4 million in pension benefits and another $215,000 in health care benefit premiums over her lifetime. Is it “fair” for all of us and our children to have to pay for this excess?

The total unfunded pension and medical benefit costs are $90 billion. We would have to pay $7 billion per year to make them current. We don’t have that money—you know it and I know it. What has been done to our citizens by offering a pension system we cannot afford and health benefits that are 41% more expensive than the average Fortune 500 company’s costs is the truly unfair part of this equation.

And from CNSNews.

Excerpt:

Time.com reported last week that Office of Personnel Management Director John Berry estimated the government shut down cost taxpayers $100 million a day in labor that workers were unable to perform. That would suggest that the four and one quarter days the federal workers missed last week cost taxpayers about $425 million–close to the $445 million calculated on the basis that federal workers average $79,197 per year in salary not counting benefits.

The federal government was officially shut down on Feb. 8, 9, 10, and 11 and opened for business two hours late on Feb. 12.

Federaljobs.net’s Damp told CNSNews.com that not all of the more than 340,000 federal employees stayed home on those days. Some of these workers are designated as “essential” employees and are supposed to show up even when the weather or other conditions closes the federal government. These include, for example, law enforcement officers, key personnel with the Federal Aviation Administration, and workers who are needed for national security reasons.

“But I think it’s safe to say most of the workers did not go to work,” Damp said.

When non-essential federal workers are told to stay home because of a government shutdown, they still get paid, according to the Office of Personnel Management.

And also from CNSNews.

Excerpt:

State and local governments spent $1.1 trillion on employee wages and benefits in 2008. That’s half of what those governments spent overall.

And while the private sector job market remains bleak, there are more civil service jobs than ever. The federal Labor Department projects wage and salary employment in state and local government will increase 8 percent by 2018. That’s a comforting thought for anyone who has to spend time in line at the DMV.

Wish we could be as confident about the prospects for creating new corporate and manufacturing jobs to help pay for these new hires.

It’s not simply the number of new jobs that costs taxpayers. It’s that these government jobs pay more than ever. The U.S. Bureau of Labor Statistics reports that state and local government workers earn almost $40 per hour in wages, salaries and benefits. That’s more than 25 percent higher than the combined compensation of the average private sector job ($27 per hour).

One of the things that weights most heavily on my mind is the outrageous pay and benefits that are paid to public sector union employees. I am in the private sector and I have to pay these exorbitant salaries to people who have probably never worked a day in their entire lives! I have never had a moment’s peace in my career – the threat of layoffs has been a constant since I was doing internships during my undergraduate days. And I have two degrees in computer science!

Look, I’m a child of first generation immigrants, and I’ve been volunteering since I was 14 and working since I was 16 in high-tech. How can it be that people who cannot even teach children successfully can make so much money? It just is not fair, and I find it very depressing that I am paying for these layabouts. It makes me want to give up trying to do anything! The fact that Obama keeps raising public sector salaries in a recession does not help. And Obama opposes school choice, too.

I say abolish public sector unions, and abolish bailouts to private sector unions, too.

How government regulations stop businesses from hiring new employees

Consider this story from the UK Daily Mail. (H/T ECM)

Excerpt:

When it comes to hiring staff, there are plenty of legal pitfalls employers need to watch out for these days.

So recruitment agency boss Nicole Mamo was especially careful to ensure her advert for hospital workers did not offend on grounds of race, age or sexual orientation.

However, she hadn’t reckoned on discriminating against a wholly different section of the community – the completely useless.

When she ran the ad past a job centre, she was told she couldn’t ask for ‘reliable’ and ‘hard-working’ applicants because it could be offensive to unreliable people.

‘In my 15 years in recruitment I haven’t heard anything so ridiculous,’ Mrs Mamo said yesterday.

‘If the matter wasn’t so serious I would be laughing out loud.

‘Unfortunately it’s extremely alarming. I need people who are hardworking and reliable – and I am pleased to discriminate in that way. If they’re not then I really can’t use them. The reputation of my business is on the line.

‘Even the woman at the jobcentre agreed it was ridiculous but explained it was policy because they could get sued for being dicriminatory against unreliable people.

Socialism doesn’t help people to find jobs. Socialism hurts the poor.

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