T Nation

Mis-Allocation by 120%

http://www.usatoday.com/news/nation/2010-03-04-federal-pay_N.htm

My figure may be skewed, however the principle is still the same. The Government obvious and will never have a monetary incentive to be efficient, so we can conclude (for this post) that the private sector is more effective.

It is interesting that businesses that are getting by in this recession (that are still afloat obviously they would not be paying anyone) are paying their employees on average $55,500 with around $9000 in benefits. Yet, the government is paying 20% more than that and about $30,000 more in benefits.

Not only is government likely not producing a quality product or service compared to what the private sector could, but they are paying 20% higher in base salary and 440% higher in benefits to the same job. Mis-allocation big time, I sometimes wonder what sector would be blossoming right now if government wouldn’t spend others money.

It is too complicated for people, when they would have to realize the money has to come from somewhere. How many people believe that Obama can generate “free money”? It’s hard for me to think positive. Obama’s sales pitch got him into office and I hope the public is smart enough to see through the gimmick before the next election. There are high numbers of people in the world today who choose to be ‘willfully ignorant’ and I therefore refuse to hold my breath.