Sunday, July 11, 2010

Government Employees - The New Millionaires

On average, government employees earn about 30% more than private sector employees, when all compensation and benefits are included. But, that is just the begining because pension benefits make government employees the New Millionaires in the United States. A government employee earning $80,000 a year who retires at age 60, which is not unusual and lives to be age 85, when all pension benefits are provided will receive about $2,000,000 in pension benefits, which often includes free health care. Since Social Security benefits are capped, a similar private sector employee will receive about $750,000 over the same time period.

However, the picture is much worse. During the last 20 years, private sector employers have dramatically cut benefits requiring employees to pay for more of their health care expenses, while government employees received these same benefits for little or nothing. This is one reason for the 30% glaring difference between government and private sector employees. This means that during one's working life, private sector employees, at least the 50% of us that pay income taxes, have been paying to support the life style of public sector employees, which often includes job security for the incompetent.

Of course, the rubber has hit the road. Government at all levels does not have the money to pay these government employee pensions, which is one reason state governments are bankrupt. The federal government too cannot meet its pension obligation. Eventually, the federal government can and will print money, which will lead to high inflation and interest rates; but the only thing state governments can do besides ask the federal government for a bail out, is to raise taxes, which the public employee unions are demanding be done. Raising taxes will result in job losses in the private sector and even more budget deficits so that would be counter productive. As such, this government pension liability is a time bomb that will shortly explode on the American people.

Elected officials have taken care of themselves, as well. Members of the House of Representative and the Senate get lucrative federal pensions after serving just a few terms in office. The President really has a good deal. In addition to earning $400,000 and receiving a tax free expense account of $50,000, each year, the President gets the White House, the Jet and all the Perks that go with it, worth millions of dollars all tax free. But it gets better. Once out of office, the President will receive a pension of about $200,000 a year, Secret Service Protection and reimbursement for staff, travel, mail and office expense.

It is certainly understandable that Secret Service Protection be provided; but since most President are millionaires, why is the American taxpayer required to maintain the President's life style after serving just 4 or 8 years in office. The argument that the President is a 7/24 employee does not hold water because the same could be said for most business owners. Further, elected officials are allowed to receive multiple pensions so if they served in the House, Senate and then became President of the United States, they are collecting more than one check each month worth hundreds of thousands of dollars each year. Remember, the maximum Social Security benefit is about $30,000 a year. There is something very wrong with this picture!!

While the rest of the American people are stuck with bankrupt Social Security, government employees are the New Millionaires at our expense. Public employee unions, like SEIU and the NEA, are leading the United States toward bankruptcy and they could care less. All they care about is getting their piece of the pie, no matter how it impacts our country. It is despicable.

President Obama and the Socialists who control Congress are owned lock, stock and barrel by the public employee unions, which is the reason we must take back our country in 2010 and 2012 by electing Conservatives who support free market capitalism, limited government, lower taxes and less regulation, a balanced budget, term limits, a strong national defense including securing our border and fighting Terrorism, real energy independence and health care reform, the right to bear arms, the sanctity of life and family values. This is the winning platform that will lead to economic growth and prosperity.

Most important, we must elect Conservatives, who support the Constitution as written by our Founding Fathers, not as contrived by Socialists Obama, Reid, Pelosi, former Presidents, Congresses, or the Courts. We must take back our country to get these government pensions under control and prevent the bankruptcy of the United States. We can do it. We must do it to preserve our freedoms and for the sake of our children and grandchildren.

No comments:

Post a Comment