We've Become a Nation of Takers, Not Makers

[Executioner]

If you want to understand better why so many states—from New York to Wisconsin to California—are teetering on the brink of bankruptcy, consider this depressing statistic: Today in America there are nearly twice as many people working for the government (22.5 million) than in all of manufacturing (11.5 million). This is an almost exact reversal of the situation in 1960, when there were 15 million workers in manufacturing and 8.7 million collecting a paycheck from the government.

It gets worse. More Americans work for the government than work in construction, farming, fishing, forestry, manufacturing, mining and utilities combined. We have moved decisively from a nation of makers to a nation of takers. Nearly half of the $2.2 trillion cost of state and local governments is the $1 trillion-a-year tab for pay and benefits of state and local employees. Is it any wonder that so many states and cities cannot pay their bills?

Every state in America today except for two—Indiana and Wisconsin—has more government workers on the payroll than people manufacturing industrial goods. Consider California, which has the highest budget deficit in the history of the states. The not-so Golden State now has an incredible 2.4 million government employees—twice as many as people at work in manufacturing. New Jersey has just under two-and-a-half as many government employees as manufacturers. Florida's ratio is more than 3 to 1. So is New York's.

Even Michigan, at one time the auto capital of the world, and Pennsylvania, once the steel capital, have more government bureaucrats than people making things. The leaders in government hiring are Wyoming and New Mexico, which have hired more than six government workers for every manufacturing worker.

Now it is certainly true that many states have not typically been home to traditional manufacturing operations. Iowa and Nebraska are farm states, for example. But in those states, there are at least five times more government workers than farmers. West Virginia is the mining capital of the world, yet it has at least three times more government workers than miners. New York is the financial capital of the world—at least for now. That sector employs roughly 670,000 New Yorkers. That's less than half of the state's 1.48 million government employees.

Don't expect a reversal of this trend anytime soon. Surveys of college graduates are finding that more and more of our top minds want to work for the government. Why? Because in recent years only government agencies have been hiring, and because the offer of near lifetime security is highly valued in these times of economic turbulence. When 23-year-olds aren't willing to take career risks, we have a real problem on our hands. Sadly, we could end up with a generation of Americans who want to work at the Department of Motor Vehicles.

The employment trends described here are explained in part by hugely beneficial productivity improvements in such traditional industries as farming, manufacturing, financial services and telecommunications. These produce far more output per worker than in the past. The typical farmer, for example, is today at least three times more productive than in 1950.

Where are the productivity gains in government? Consider a core function of state and local governments: schools. Over the period 1970-2005, school spending per pupil, adjusted for inflation, doubled, while standardized achievement test scores were flat. Over roughly that same time period, public-school employment doubled per student, according to a study by researchers at the University of Washington. That is what economists call negative productivity.

But education is an industry where we measure performance backwards: We gauge school performance not by outputs, but by inputs. If quality falls, we say we didn't pay teachers enough or we need smaller class sizes or newer schools. If education had undergone the same productivity revolution that manufacturing has, we would have half as many educators, smaller school budgets, and higher graduation rates and test scores.

The same is true of almost all other government services. Mass transit spends more and more every year and yet a much smaller share of Americans use trains and buses today than in past decades. One way that private companies spur productivity is by firing underperforming employees and rewarding excellence. In government employment, tenure for teachers and near lifetime employment for other civil servants shields workers from this basic system of reward and punishment. It is a system that breeds mediocrity, which is what we've gotten.

Most reasonable steps to restrain public-sector employment costs are smothered by the unions. Study after study has shown that states and cities could shave 20% to 40% off the cost of many services—fire fighting, public transportation, garbage collection, administrative functions, even prison operations—through competitive contracting to private providers. But unions have blocked many of those efforts. Public employees maintain that they are underpaid relative to equally qualified private-sector workers, yet they are deathly afraid of competitive bidding for government services.

President Obama says we have to retool our economy to "win the future." The only way to do that is to grow the economy that makes things, not the sector that takes things.

http://online.wsj.com/article/SB1000142 ... 82108.html

[normalicy]

I have to agree. Which is sad, because many of the people I know work for the government. But it's not their fault. The government really doesn't try to improve itself as far as I can see. Just maintain. I as well have considered a government job specifically for stability & thought it was sad.

[Hameister]

This is unusual....very unusual. Most forums have strict rules against any form of political discussion for fear it will lead to vicious flame fests, (which it often does, ha!).

Since it is not only allowed, but apparently encouraged here, I'll throw in my 2 cents worth.

Executioner makes very valid points, but only scratches the surface of the problems in this country of ours.

I am 68 years of age so I've had an opportunity to experience the enormous changes that have taken place in this country over the past 5 decades. These changes have culminated in the people who are in power today. People like Nancy Pelosi, Harry Ried, and of course Mr. Obama. All of whom wish to continue to enlarge government, tax more, spend more, develop more social welfare programs, and just plain give away more money in stimulus programs.

While these people don't come out and say it directly, their message is clear. Being more successful than "average" is not acceptable. Being financially successful and making a lot of money is to be punished with higher taxes. The more "entitlement" programs the government offers, the less the individual citizen must work to achieve same. The more the individual citizen must depend on the government to care for their needs, the larger government can grow.

Another huge change in direction for this country over the past 50 years, is the concept that everyone is created equal. That concept in my opinion was infused in our spirit and upheld by our courts to relate to a persons ethnicity, religion, and race. I do not believe it was meant to assume that everyone is born with the same innate intelligence, or capacity to be a productive, successful, member of society. The truth is, when it comes to I.Q., some people are brilliant, others just plain stupid, while most are average. Since the dawn of time there have been poor people, wealthy people, smart people and stupid people. There have always been, and will always continue to be, people who will lead in society, while others will follow. Some who posses a burning desire to achieve, while others are content with the scraps. I firmly believe that this will never change. In my opinion these are the primary reasons why Socialism and Communism have failed so miserably. Simply put, the attempt to "homogenize" all people into being "equal", or "the same", has never been successful and will never be successful. The political Left, the Liberals, the Progressives in our society, just don't get this concept and never will.

Surely, I do not wish to give the impression that the political Conservative, or Republican, is completely devoid of responsibility for what's happened to this country. The political right has often fallen prey to the "Politically Correct" agenda, of the P.C. Police in this country. My career in the insurance industry, throughout my 20s, 30s, 40s, was probably one of the most difficult times anyone could possibly experience. Don't say "Mailman", that is sexist, say "Letter Carrier", do say "Fisher" not "Fisherman" for that excludes women and is therefore sexist. If you see a woman with whom you work wearing and new dress that you feel is attractive and flattering, compliment her outside of the office, off the premises. Complimenting her within the office may be construed as "Sexual Harassment". In the 1960s there were parking spaces in front of my office with signs that read "Handicapped Parking", in the 1970s, those signs were replaced with "Physically Challenged", in the 1980s, the signs were replaced again with "Handy Abled Parking".

Let us not forget the "Affirmative Action" program throughout the 80s especially. I can clearly remember my company having placed an ad in the paper, holding interviews for a Sales Rep. trainee. Just as clearly, I remember an executive from our Regional Office, telling those doing the interviewing that they will hire a female. She will be either Black or Asian, so that he could check 2 boxes. If a Female, Black/Asian, Physically Challenged could be found, a bonus was available. White males, need not apply, but of course don't tell them that, just take their application and tell them we'll get back to them, and make no commitments.

Do any of you remember the days when you needed to decide what you wanted BEFORE you purchased an item. You had a maximum of 7 days to return the item, and ONLY if the item was defective, and exchanged for another of the same item. Wow! What a concept. Today, people expect to be able to return anything, for any reason, or, no reason at all, months later, for a full refund, no questions asked. Who is paying for that ridiculous policy? All of us.

I could go on, but any reasonable person reading this will get the point I'm sure. Perhaps this country has gone too deep into the quicksand, and will never be able to recover, I hope not, but it doesn't look good. Oh, one final thought, when having a discussion about terrorists, terrorism, 911, etc., please make certain that you say "Muslim Terrorists", not simply "Muslims". Even though the term is used within the context of a discussion about terrorism, you must be very careful not to imply that all Muslims are terrorists. This is offensive, and will surely bring the wrath of the P.C. Police, down upon your head.

Even if this isn't read by a single sole, it was nice to vent a little.

[RubberDuckie]

The article has some facts correct, some exaggerated, and some false but makes general statements and applies them to the government as a whole.

Most reasonable steps to restrain public-sector employment costs are smothered by the unions. Study after study has shown that states and cities could shave 20% to 40% off the cost of many services—fire fighting, public transportation, garbage collection, administrative functions, even prison operations—through competitive contracting to private providers. But unions have blocked many of those efforts. Public employees maintain that they are underpaid relative to equally qualified private-sector workers, yet they are deathly afraid of competitive bidding for government services.

This is a good example. True for some areas of our government false for others but makes the claim for all government. I would love to see how you would feel if your fire or water services were privatized. Not good.

As with everything on the Internet I hope you do not take it for face value.

[RubberDuckie]

Hameister... I couldn't agree with you any more. Very well put

[Hameister]

Hameister... I couldn't agree with you any more. Very well put

Hey thanks RD, it's nice to know that at least 1 other person agrees with me!