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Covering the Front and Back Pages of the Newspaper
May 25, 2010
POLITICS: Of The Government, By The Government, For The Government
Great Mark Steyn column, as usual, on Greece and what it means: From the Times of London: "The President of Greece warned last night that his country stood on the brink of the abyss after three people were killed when an anti-government mob set fire to the Athens bank where they worked." Read the whole thing. Unfortunately, we have things like this happen here, too, and yet it's the Right that gets accused of "sedition" for daring to criticize the domestic policies of the President. But the underlying fiscal problem of a private sector straining under the weight of an ever-expanding government is taking its toll here as well, as USA Today reports that private-sector paychecks have hit a historic low percentage of household income: A record-low 41.9% of the nation's personal income came from private wages and salaries in the first quarter...Individuals got 17.9% of their income from government programs in the first quarter...Programs for the elderly, the poor and the unemployed all grew in cost and importance. An additional 9.8% of personal income was paid as wages to government employees. In other words, that's 66 cents of spending on government wages or transfer payments for every dollar of private-sector wages. As we see from the Greek example, that's not just economically but socially unsustainable, because it creates two classes of people locked in a zero-sum pie-dividing exercise - a much larger and more lethal social problem than the traditional struggle between private-sector labor and management, in which there is at least some sense that both sides are engaged in a common productive enterprise. Comments
I stopped listening to Mark Steyn after he wrote we should stop listening to those who were so wrong about the Iraq War. I stopped listening to Mark Steyn after he wrote we should stop listening to those who were wrong about the Iraq War. I won't dump all of that on the Obama administration. Some of this historic low is of course temporary and expected given the economic crisis and with the unemployment rate being where it is. Also, I suspect the general aging of baby boomers over time partially accounts for the trend over that period, as they retire and begin collecting social security and are not replaced with the same number of private sector workers due to demographics. As for government employment, I imagine that they are counting the military as well as the federal bureaucracy. Regardless of cause, the problem is serious, and the overreach on health care reform is not going to help. There are some common-sense solutions, and we are not Greece, but we shouldn't be waiting any longer. Also, many, many more of the government jobs are unionized.
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