A recent survey by USA Today shows that in a number of occupations which exist both in the Government and commercial world - “the Government pays better”. That is not actually always true – but it makes good press.
Might be a real good idea for those aspiring college graduates to get a resume into the Government to pursue a career as a G-man or G-woman.
The key to this though, isn’t that the Federal Government pay scale has gone whacky. There are two factors contributing to the differential.
First is the age of the average Federal Government worker.
In the United States, for example, 60 percent of the federal civil service is older than 45 years – nearly double the 31 percent in the private sector. Furthermore, only 3 percent of the federal workforce is less than 25 years old.
In the Federal Government’s pay system, additional pay is given for each year of seniority in a position. So, a person who is new to a job makes less than someone with 10 years experience at the same job. The impact of an older workforce is to artificially push up the average salaries.
Second, is how commercial corporations have reduced their payroll by eliminating older workers – pushing down the average age of the workforce, while lowering expense due to salaries. This sort of age discrimination is fairly rampant – and has resulted in a massive real income loss for the average American Family. Where it gets truly ugly is the fact that this strategy has forced perhaps as many as 5 million older American workers into unemployment, or under-employment in what should have been their prime earning years – socking away a large portion of their retirement funds. In combination with the massive losses Wall Street has inflicted on pension and retirement plans – this means that the cost of this generation nearing retirement has been pushed off onto the Government, as massive numbers of people will be dependent on Social Security as their only income.
Ergo – the “shinola” is about to hit the fan.