Two Americas: Public vs. Private Employees

1. “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 (see chart above).

~Steve Moore in the WSJ

2. NY Times — “Carlos Bejarano, a Phoenix school superintendent with more than 30 years in education is one of an increasing number of public employees here who are retiring one day and going right back to the same jobs the next, enabling them to supplement their income with retirement benefits without really retiring at all.”

It’s called public sector “double dipping,” “faux retirement” or “non-retirement retirement.”

3. Boston Globe — “Health insurance plans to cover city and town employees in Massachusetts cost 37 percent more than similar plans for workers at private companies, mostly because municipal employees pay minimal copayments or deductibles when they get care, according to a new statewide survey.

The report, which focused on 14 municipalities, found that city and town workers typically pay only $11 to see their primary care physician, half the amount typically paid by workers in the state, federal, and private sectors.” (HT: Steve Bartin)

$11 for an office visits, that’s “almost free,” so it’s no wonder medical costs are so high for city workers, they probably go to the doctor every time they have a mild cold.

About Mark J. Perry 262 Articles

Affiliation: University of Michigan

Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.

He holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University in Washington, D.C. and an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota.

Since 1997, Professor Perry has been a member of the Board of Scholars for the Mackinac Center for Public Policy, a nonpartisan research and public policy institute in Michigan.

Visit: Carpe Diem

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