A Comment About

Want Change? Let’s Try Truly Free Markets

November 17, 2008 - 12:00 am - by Rand Simberg
Bozoer Rebbe
2008-11-17 21:03:09

It’s sad to see supposed libertarians and conservatives engaging in class warfare and class bias over factory workers making a good living.

I’d like to have $73.21 for every time I’ve seen that figure for the total UAW compensation package. It’s gone viral for sure.

But at least those UAW workers and others in the auto industry and its supply chain actually make stuff, create wealth, and contribute to GDP growth.

Focusing on the supposed sins of the UAW and their employers takes our eyes off a more fundamental problem, something that is truly statist.

Did you know that there are more than 288,888 federal civil service employees who make at least $77,500 a year in salary, with a cushy benefit package that is the envy of the UAW? Did you get a raise last year? Federal employees got 2.5%. While I’m sure many of the 1.6 million non postal civilian federal employees work hard for our country, do we really need 300,000 GS-11s and above?

My aunt is a retired Social Security administrative law judge so she’s pretty familiar with the civil service and federal bureaucracy. When I told her that there were that many GS-11s and above here response was: “And what do they do for that money? I’ll tell you. They sit on their asses.”

What do all those GS-11s through GS-15s do to contribute to the GDP?

Just 1/5 of federal employees take over $23 billion a year out of the taxpayers’ pockets, not counting benefits, which probably double that sum.

Meanwhile, since 1981, the feds have spent 81 cents in Michigan for ever dollar Michigan has sent to the IRS. From 2000-2005 alone, Michigan’s net loss of tax dollars is about $38 billion, 50% more than the bailout would cost. From 1981, the figure is closer to $200 billion. Where did that money go? Mostly to the south, for infrastructure, defense bases and defense plants.

Now, we’re spending $300 billion rebuilding New Orleans, which will still be below sea level and flood again.

I’m all for fiscal conservatism and free markets but I’m not a sucker. Sooner or later you begin to think, screw it, let us get our share because everyone else is reaching in with both hands.