"Well I lost my job down at the factory, lost my money in the lottery"
- The BoDeans
During his two failed runs for the U.S. Presidency, former North Carolina Senator John Edwards liked to talk about the "two Americas" that he claimed existed.
The difference, he believed, was between wealthy and non-wealthy citizens. It was a key element of a very populist message that resonated with many voters.
Of course, that was before Sen. Clean Cut got caught sneaking out of his mistress's hotel room, by the National Enquirer no less. Yes, the same publication that unearthed Gennifer Flowers in the early days of Bill Clinton's first presidential campaign. Obviously, one politician survived his scandal quite headily while the other hasn't been heard from since.
But Sen. Edwards was onto something, although not in the way he intended. There are indeed "two Americas" emerging.
In a time of economic upheaval not experienced for seven decades, jobs are dropping like flies and people's investment accounts are shrinking with heart-dropping speed. No one feels safe from the layoff axe - unless they work for the government, that is.
Faced with a $5+billion budget deficit, Wisconsin Gov. Jim Doyle announced that he has no plans to lay off or furlough state workers. Huh? Any economics simpleton knows that personnel costs are the biggest part of any business or government operating budget. Cutting personnel is the quickest way to reduce expenses. That's why businesses are shedding jobs left and right as they react to reduced income from a stalled economy.
State government, though, is not run anything like a business, as the Governor's proclamation once again illustrates. Unless jobs are reduced, the state budget deficit can only be eliminated by wholesale program cuts or tax increases. You get one guess as to which the Democratic governor will choose. He has shown his priorities, and top among them is protecting state employees.
The "two Americas," in case you haven't figured it out by now, is very simple: Those who work in the public sector and the rest of us. The first group has unparalleled job security, gold-plated benefits and - you thought these were extinct? - pensions! Oh, and did I mention that often they can retire as early as 50?
The rest of us? We get job security fears, ever-increasing benefit costs and retirement plans that we have to pay for. The balance in those retirement accounts ain't what it used to be, either.
Need more? The Elmbrook School District really bit the bullet recently. Wow. Such courage. It agreed to a two-year contract with its administrators that will increase the employees' share of health and dental insurance premiums from 3 to 5 percent! Oh my heavens! How ever will the employees afford this? And this is if they participate in a wellness program. If they don't partake of the program they have to pay - are you sitting down? - 10 percent of the premiums! The horror of it all!
The sarcasm is intended. Here's where it gets worse - the administrators also got a 4.1 percent salary increase! On average, that's an additional $3,500 a year!
I know what you're thinking: Where do I sign up? Because at a time when many private sector workers are getting minimal (if any) raises, these public employees keep cashing bigger paychecks. Yes, maybe they are paying slightly higher benefit costs, but don't forget that health insurance premium shares are usually pre-tax paycheck reductions, limiting their impact on net pay. In the case of the Elmbrook administrators, they likely broke even if not came out ahead financially.
If it all seems a bit galling, that's only because it is. Obviously employees are needed to run government operations - that's not the issue. There are many hard-working public-sector employees who earn an honest living.
But their pay and benefit packages are ultimately approved by elected officials. So at a time when so many workers are suffering financially, is it too much to expect our "leaders" to ask this segment of the working public to make a sacrifice? After all, they're paid from taxes, which are an unavoidable financial drain on every working citizen!
Don't hold your breath for it to happen. Government employment is an insular operation usually protected by unions, job rules and politicians that want the employees' votes.
Don't believe me? Check out how many of the approximately 67,000 state workers are represented by AFSCME, the biggest public employees union. Any doubt that Gov. Doyle wants to stay on their good side?
But then again, we know which of the "two Americas" he lives in.
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Private employers are cutting staff because of reduced demand. Is there an equal reduced demand for state services? Typically in a down economy there is in fact an increased demand for state and federal services. Now whether that is right or wrong is a whole 'nother discussion.
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