The release of updated industry data from the Bureau of Economic Analysis, which show that the average federal employee continues to earn significantly more in compensation than the average private sector employee, has Office of Personnel Management Director John Berry on the defensive.
A new Department of Housing and Urban Development’s inspector general report finds that the agency initially required, and then “encouraged,” recipients of HUD stimulus funds to post signs indentifying projects as being funded by the Recovery Act. In other words, HUD pushed recipients to engage in political advertising, and to do it with taxpayer funds.
The White House Office of Management and Budget homepage currently features the following quote from the president:
The Bureau of Economic Analysis latest release of industry compensation levels shows that the average federal worker ranks up at the top along with employees in the finance and energy industries.
The Bureau of Economic Analysis has released its annual data on compensation levels by industry. The data show that the pay advantage enjoyed by federal civilian workers over private-sector workers continues to expand. This state of affairs is a thumb in the eye of the private sector, which continues to struggle with high unemployment. Many private sector employees have been forced to take pay and benefit cuts while continuing to fund generous federal employee compensation with their taxes.
The House is scheduled to pass another $26 billion bailout for state and local governments on Tuesday. The legislation provides another $10 billion for education and $16 billion to extend the increased share of Medicaid being paid for by the federal government since passage of the stimulus.
A common theme with federal programs that fund state and local activities is that the distribution formulas are highly complex and politically-driven. The result is that policymakers at the federal and state level are constantly jockeying for more money, while the general public remains largely ignorant as to where the money comes from and how it’s spent.
As the fall elections approach, two factions within the congressional GOP have emerged. The first faction, which generally controls the Republican leadership, is short-term oriented and just wants to return the GOP to power in Congress. Riding the wave of voter discontent over the government’s finances is a means to an end – the end being power.