The Government Pay Bonus

In Andrew G. Biggs recent article in the Wall Street Journal he explains the biggest threat to the current and future deficit is the rising entitlement benefits of Social Security, Medicare and Medicaid.  But wait, what about the rising entitlements of federal worker’s salaries and benefits? Their hourly average wage is 48% higher than the private sector.  Overall generosity of federal benefits can easily exceed $14,000 per year over their private sector counterpart, not to mention job security. Mr. Biggs goes on to say,”A federal pay premium is unfair both to private workers, who receive less than their government peers, and to taxpayers who must cover the difference. Given our 2.7 million-strong federal work force, the government effectively overbills Americans by almost $40 billion every year just on labor costs.  Is this beginning to look a lot like Greece?