Uncle Sam becoming Santa Claus

Be who you are and say what you feel, because those who mind don’t matter. And those who matter don’t mind. ~Dr. Seuss

Government’s role in the economy has reached an unprecedented scale by at least one measure.
A record 30 cents of every dollar in personal income comes directly from government, Commerce Department data show.
And since government produces nothing and gets it money from you and me (the private sector) and there is now 47% of the people who don’t pay taxes at all and One in six Americans receives some form of government aid because of effects of the recession that started in 2007, a review of data indicates.
More than 50 million people are on Medicaid, a program principally designed to help the poor, and nearly 10 million Americans receive unemployment benefits, USA Today said Monday in a report based on data from state officials.
“Virtually every Medicaid director in the country would say that their current enrollment is the highest on record,” said Vernon Smith of Health Management Associates, a company that compiles data for the Kaiser Family Foundation.
More than 40 million people now receive food stamps, a jump of nearly 50 percent since the recession began, the report said. The unemployment rate in the United States remains above 9 percent.

You have more people dependent on less people for more money!

But don’t worry, this was the “Summer of Recovery” and everything is fine. It just needs more time , according to our Harvard Educated Academic Elites — aka the Obama boys and girls.
And they just need to explain it better and suddenly you’ll have an epiphany and see how wonderful they are!
Including transfer payments (income support and health insurance benefits) and compensation to public employees, government paid out $3.8 trillion of $12.5 trillion in total personal income in July on an annualized basis.
And remember their “urgent” August bailout of state workers for  $26 billion was supposed to be partially paid by cuts in Food Stamps in 2014 (when the Health Care Mandate is set to kick in).
So if they just explain better how their Wimpy “I’ll bailout you today for a payment in 4 years” economics work for you, you’ll suddenly fall madly in love with them and bask in their greatness.
That 30.3% share of personal income compares to 25.5% before the recession and 23.5% in 2000. The level topped 27% in the wake of the 1991 recession and hit a prior peak of 28% in 1975.
So government workers personal income has risen 7.5 % SINCE the recession started (and Congress was taken over by Democrats in 2007). And you’re on the hook for it. Doesn’t that make you happy?
The government’s record share reflects the dismal state of private wages and the ramping of federal transfer payments from a historically high base.
“The private economy has been put through the wringer and thus policymakers have been working hard to fill the hole,” said Mark Zandi, chief economist at Moody’s Analytics.
Real private wages remain 8.4% below their December 2007 level and just 1.3% above their February bottom. That low was a level first reached in March 2001.
The weakness in private wages reflects deep layoffs and shorter workweeks due to the recession, and the “not terribly robust” prior economic expansion, said Josh Feinman, chief economist at Deutsche Asset Management in the Americas.
Meanwhile, government income payments are up 17% in real terms since the start of the recession. The real mover has been transfer payments, which accounted for a record 18.4% of personal income in July. That’s up by nearly half from 12.7% in 2000 and more than a quarter from 14.4% in 2007.
The growth is a combination of the inexorable rise of spending on Social Security and health care entitlement programs, as well as a spike in unemployment compensation, food stamps and Medicaid due to weak labor markets and expanded benefits included in the Recovery Act.
Real personal income less government transfer payments remains 5.5% below its December 2007 peak, yet real disposable income is up 2.7% since the start of the recession. That’s due to increases in government income payments and lower tax payments.
Too Much To Get Out?
The government’s role in supporting the recovery is already raising questions about how the economy will fare as the crutches are removed.
“Given how significant its role has become, it does make it more difficult for the government to exit out in a graceful way,” Zandi said.
The stimulus has already begun to fade, with more than a million unemployed exhausting jobless benefits of up to 99 weeks.
Zandi says even further government stimulus would be prudent, given the current slowdown.
In addition to tax cuts and spending hikes, another option would be a government-led mortgage refinancing push to make low-rate loans available to those with insufficient equity in their homes to qualify.
“To have a meaningful recovery, the private sector has to step back up to the plate,” Feinman said.
In prior recoveries, policy stimulus and inventory building eventually allowed for a handoff to a healing private sector, he says.
That handoff “is just not happening” said Feinman. He expects “a long climb back.”
The one area of private compensation that is growing, nonsalary benefits, is not as helpful as wage growth, which puts cash in people’s pockets, Zandi notes.
Real nonsalary compensation (private and government) is up 4.1%, likely reflecting rising health care costs and perhaps some catchup pension contributions.
During the Great Depression, when fiscal stabilizers and safety nets were in their infancy, the government’s share of personal income peaked at just over 16%. Even in World War II, when the government payroll ballooned, its share only briefly neared 25%, falling back below 20% until the 1960s.
The share of personal income is an incomplete gauge of government’s economic role because it doesn’t include direct spending. A better, though imperfect, measure would be the combined federal, state and local government budgets as a share of gross domestic product.
By this score, government was far bigger during World War II, when the federal budget alone topped 43% of GDP. While state and local figures are out of date, total government spending probably will be around 40% of GDP this year. (IBD)


And Obama & Co’s solution, they want to spend more money and still raise taxes on 1/1/11.
The definition of insanity is doing the same thing over and over again and expecting a different result.
But that’s what happens when you’re in an ideological ditch and you can’t get out.

So bring out the talking points:
“In the month I took office, we were losing 750,000 jobs a month,” the president said. “This morning, new figures show the economy produced 67,000 private sector jobs in August, the eighth consecutive month of private job growth.  Additionally, the numbers for July were revised upward to 107,000. Now that’s positive news, and it reflects the steps we’ve already taken to break the back of this recession.”
The net job loss for August is largely because of the layoffs of 114,000 Census temporary workers.
When May’s job numbers showed a net increase of 431,000 jobs – 411,000 of which were Census jobs — the president did note that “most of these jobs this month that we’re seeing in the statistics represent workers who’ve been hired to complete the 2010 census.” But in those June 4 remarks the president didn’t detail just how many of the 431,000 jobs were Census jobs – 95% of them — and he cited the overall report, and its deceptively large number as evidence that businesses are “starting to hire again. Workers who were laid off, they’re starting to get their jobs back. Companies that were almost forced to close their doors are making plans to expand and invest in new equipment.” (ABC)

So you can have you’re cake and eat it too! So Let them Eat Cake!
…and said he would “in the weeks ahead” be detailing “further steps to create jobs and keep the economy growing, including extending tax cuts for the middle class and investing in the areas of our economy where the potential for job growth is greatest.”
And judging from past performance that means more government jobs and more bailouts for states and unions.
Yeah, that’s the ticket…:(


Asked to what degree he regrets his administration’s decision to call this Recovery Summer, the president stammered then said, “I don’t regret the notion that we are moving forward, but because of the steps that we’ve taken.  And I’m going to have a press conference next week, where, after you guys are able to hear where we’re at, we’ll be able to answer some specific questions.” (ABC)

Oh god, he’s going to EXPLAIN IT AGAIN! Just in case you were too stupid to understand it every other time he’s said it!
If he just explains it repeatedly enough you’ll get it.


“This is what change looks like,” Obama said on signing into law the Health Care Cram down Bill.
So in November, we have to show HIM what change looks like then we have change ourselves too because they are the pimps, and we are the ho’s.  So we have to take them out of the drug dealing business and we have to stop using them.

Putting Government First

I have not always had much love for Pat Buchanan, but this article he wrote recently is brilliant. So I give him props for it.
The Topic: the lastest bailout of Obama apparatchiks (even though they don’t call them bailouts anymore because they don’t “bailout” anyone anymore. I guess it depends on your definition of “bailout”)

Where a man’s purse is, there his heart will be also.
If you would know where the heart of the Obama party is today, consider. In the dog days of August, with temperatures in D.C. rising above 100, Nancy Pelosi called the House back to Washington to enact legislation that could not wait until September.
Purpose: Vote $26 billion to prevent layoffs of state, municipal and county employees whose own governments had decided they had to be let go if they were to meet their constitutional duty to balance their books.
Workers their own governments thought expendable, Congress decided were so essential, it borrowed another 26 thousand million dollars from China to keep them on state and local payrolls.

//

A nation whose national debt is approaching the size of its gross national product, that goes abroad to borrow money to keep non-essential workers on government payroll is a nation on the way down and out.
And anyone who thinks this Obama party is ever going to cull the armies of tens of millions of government workers or scores of millions of government beneficiaries to put America’s house in order is deluding himself.
As long as this Congress and White House remain in power, a U.S. default on its national debt is inevitable. The only question is when.
Nor is this the first time the Obama administration has rushed to save workers whom their own state, city and county governments were prepared to let go. Among the reasons the $800 billion stimulus failed is that so little of it was directed to firing up the locomotive of the economy, the private sector, and so much of it was spent to ensure that government workers did not have to share in the national sacrifice.
Why Pelosi & Co felt compelled to return to D.C., to ensure that state and local government payrolls were not pared, is not hard to understand.
Which party does the American Federation of Teachers; the National Education Association; and the American Federation of State, Municipal and County Employees usually contribute to, work for, vote for? At which of the two party conventions are teachers and government employees hugely over-represented?
Consider, too, the states deepest in debt and facing the largest cuts in employee ranks, pay and benefits: California, Illinois, New York.
In these states, public employees earn at least $10,000 per year more in pay and benefits than the average America worker, who is bailing them out.
Hence, we have a situation where private sector workers in Middle America are being taxed, their children being driven ever deeper into debt to China, so government employees who have greater job security than they do, and earn more in pay and benefits than they will ever earn, can stay in Fat City.
And folks wonder why so many Americans detest government.
In the same week Congress came back to prevent AFSCME from taking a haircut, the Wall Street Journal reported that, in 2009, only three of 52 metro areas with over 1 million in population saw “net earnings and the broader measure of personal income both rise.”
Are you surprised to learn Washington, D.C., was among the three?
That same day, USA Today had a startling report on how, during the last decade, U.S. Government workers, like Wall Street bankers, left their fellow Americans in the dust.
“Federal workers have been awarded bigger average pay and benefit increases than private employees for nine years in a row. The compensation gap between federal and private workers has doubled in the past decade.
“Federal civil servants earned average pay and benefits of $123,049 in 2009 while private workers made $61,051 in total compensation. … The Federal compensation advantage has grown from $30,415 in 2000 to $61,998 last year.”
Remarkable. U.S. government workers, who enjoy the greatest job security of any Americans, now earn twice as much in pay and benefits as the average American. This is not the D.C. some of us grew up in.
Nor is this all Obama’s doing. For most of the fat years of the federal work force came while Washington was being run by a Congress of Big-Government Conservatives and a White House of Bush-Cheney Republicans.
No wonder the tea party is targeting both parties.
Nevertheless, it is impossible to believe that the Obamaites, who intervened twice and massively with bailouts to prevent minor layoffs of local and state government employees, have the stomach to do the major surgery needed to cut the federal monolith down to size.
For the vast majority of the tens of millions of government workers vote Democratic, as do the vast majority of the scores of millions of beneficiaries of federal, state and local programs.
What Pelosi & Co. were saying with that $26 billion bailout this week is, “We are going to protect our own.”
Which is why either Obama, Pelosi, Reid & Co. go, or we are gone. (Human events).

Brilliantly said.
Especially, in light of the “payment” for that government employee bailout was to raid Food Stamps in 2014.
What I called a few days ago a the Wimpy (from Popeye) style economics. I will pay you in four years (china) for the burger (bailout) today.
A bailout several states didn’t even need or want!
It’s largess for everyone in government, on the tax payers paid for by China. (Do you actually think in 2014 with the Health Care Mandate kicking people in the teeth that they will cut Food Stamps? Yeah right…)
Obama has to protect his apparatchiks though.
Screw everyone else.

The Ship is Sinking! Save the Apparatchiks!

Americans should all print this out and carry it everywhere . . .

***********************************************
Council of Economic Advisers chairwoman Christina Romer is best known for drafting the February 2009 report “The Job Impact of the American Recovery and Reinvestment Plan,” which the White House used as an ammunition belt in the fight to gain passage of its $862 billion economic stimulus bill (the actual cost of which exceeds $1 trillion when interest is included). Romer predicted that following passage of the stimulus bill, unemployment would plateau below 8 percent last fall and by this month register at 7 percent. That’s not close enough for government work, as unemployment stands at 9.5 percent today. It would be higher except that hundreds of thousands of frustrated job seekers have given up looking for new jobs and dropped out of the labor force.
Predictably, the stimulus bill has proven to be an extraordinary waste of borrowed money that has failed to create jobs, generate economic growth or do much of anything other than line the pockets of White House political allies. That and give $308 million in subsidies to BP before the Gulf oil spill disaster, and subsidize a study on what happens when monkeys snort coke.
Obama is adding to the economic misery by creating an environment of regulatory uncertainty. The Wall Street reform law Obama recently signed potentially requires 533 new regulations, 60 studies and 93 reports, according to the U.S. Chamber of Commerce. Obama’s Environmental Protection Agency has 29 active rulemakings, and there are 100 new rules on the Labor Department’s agenda and 26 at the Transportation Department.
Add Obama’s determination to raise everybody’s taxes by allowing the Bush cuts from 2001 and 2003 to expire Jan. 1, 2011, and it’s easy to why banks, businesses and consumers are hoarding trillions of dollars that could otherwise spur economic growth. And we haven’t even addressed the destructive effect on economic growth of Obama’s nationalization of major portions of the economy, including the banks, health care and the auto industry.
The economy is stalling, unemployment seems stuck at European levels of idleness, the federal deficit and the national debt are at historic highs, public confidence in Congress is at its lowest-ever level and big majorities of Mainstream Americans say Obama has the country on the wrong path. Obamanomics has failed miserably and it’s time for everybody in this town to admit it so we can move on.

But The Democrats and Liberals can’t and won’t do that. They can’t politically admit the stuff they have waited generations to cram down everyone’s throat is total crap on a stick!
“Recovery summer”? Time for another sobriquet.
So the little buggers went off on their 6 week holiday, BUT, nope they were ordered back by the likes of Speaker Pelosi
because they needed to pass a $26 Billion spending bill to give more money to public sector employees!
More money for their Peeps. The apparatchiks need more money!

On Friday, after release of the jobs report, Labor Secretary Hilda Solis touted the economy’s “turnaround” and credited “strong and immediate action” President Obama took after entering office. The only real problem, she hinted, was Republicans who refuse to support a $26 billion bailout for state and local governments and their pampered unions.
“There is no room for partisan roadblocks when Americans are depending on their government’s action and the stakes are so high,” Solis said. In this White House, economic recovery is always just one massive stimulus or bailout bill away. (IBD)
This would be the Hilda Solis who earlier this year created a PSA advising Illegal aliens to call her if their mean, capitalist boss was exploiting them so she could crack down on their boss!


And naturally, voting against it, is hurting children!
WASHINGTON — House members are giving up a couple of days reconnecting with folks in their districts this week to pass a jobs bill that Democrats say is crucial to the nation’s well-being.
The unusual in-and-out session was called because the Senate waited until last Thursday, after the House had already recessed for its summer break, to pass a $26 billion bill to prevent tens of thousands of teachers and an equal number of other state and local government workers from being laid off before the November election.
Oh no!  Not that! We can’t have public sector employees (unemployment rate 3%) hurt before the election while the little people have 9.5% (officially) closer to 18% in reality (with those who have given up) are in actual need but not politically necessary enough to care about.
“This legislation is about creating and saving American jobs, and preventing a double-dip recession,” House Speaker Nancy Pelosi said in announcing the special session just hours after the Senate passed the bill that the administration says could save the jobs of nearly 300,000 teachers and other public workers.
“It’s not a gamble,” he said, but “it would be gambling our childrens’ education to have them go back to school and find no teacher in the classroom or a larger class size.”-Rep. Chris Van Hollen, D-Md.
It’s all for the children…:)
Well, you’ve heard it hear first. Everything is now perfect and we’ll all be better off and the recession is officially been sorted by saving 300,000 public sector employees!!
Democrats should be staying home and listening to their constituents “instead of scampering back to Washington to push through more special interest bailouts and job-killing tax hikes,” said House GOP leader John Boehner of Ohio.
Republicans portrayed the special session as the Democrats’ pre-election gift to their labor union allies and objected to provisions to raise taxes on some U.S.-based multinational companies as a way to partially cover the $26 billion cost of the bill.
So raising taxes on evil capitalists to “save” some jobs will save us all.
Utopia is upon us all 
REJOICE!
Bask in the splendor and the wonder that is Obamanomics!

Here’s the real record: America has lost 4.1 million jobs since Obama took office and 7.7 million since the recession began in December 2007. So most of the jobs lost have been under this administration. Whatever else you might call Obamanomics, “successful” isn’t it.
You’d never know that Democrats controlled Congress for Bush’s last two years, or that policies they enacted during their many decades in power — in particular, using Fannie Mae and Freddie Mac to issue trillions of dollars of mortgages to unqualified borrowers — are the root cause of our crisis.
As with most progressives, they believe bigger government is always the solution to our problems…(IBD)
So the Democrats stategy to stave off a political bloodbath is to SPEND EVEN MORE and then Blame Bush for it!
Haven’t we seen re-run before?
Following release of Friday’s government report on unemployment and job creation, consumer and investor confidence has fallen to the lowest level of 2010. Just 21% of Adults nationwide now believe the economy is getting better. That’s down from 30% on Friday morning. The number who believe the economy is getting worse is now up to 54%.
The Rasmussen Consumer Index, which measures the economic confidence of consumers on a daily basis, slipped on Monday to 69.7. That’s down nine points since release of Friday’s disappointing jobs report and the lowest level of confidence measured since December 2, 2009. Eight percent (8%) rate the economy as good or excellent while 55% say it’s in poor shape.
Looked at on a month-by-month basis, consumer confidence increased on four of the first five months in 2010 and held steady in the fifth. However, it has fallen in the past two months, June and July.
But don’t worry, everything will be a utopia when these 300,000 government union people are kept off the unemployment line!!

Everything will be great when your taxes go up!  (sorry, “pro-growth revenue”)
or was that the Health Care Mandate that wasn’t tax, it’s a penalty, that’s a tax because of the Commerce Clause.
The Border is more secure now than ever!
When Social Security is officially broke (and it is).
When Medicare Advantage is slashed and your Health Savings Account is gutted.
When Fannie Mae and Freddie Mac (left out of financial reform) are bailed out YET AGAIN!
When your bosses taxes and regulations go up!
When evil capitalist pigs are crushed under the boot of Big Brother!
When the government runs your Health Care.
When Illegal aliens are granted Amnesty (but we’ll come up with an Orwellian term for it, like “deferred action”).
Rejoice in the grandeur and splendor of Obama, Pelosi, Reid!
OR ELSE!

Mom, Can I Grow up to Be a Buraucrat

The following chart makes that case. Since the beginning of the recession (roughly January 2008), some 7.9 million jobs were lost in the private sector while 590,000 jobs were gained in the public one.  And since the passage of the stimulus bill (February 2009), over 2.6 million private jobs were lost, but the government workforce grew by 400,000.

Plus, as you know, according to the latest numbers from Bureau of Economic Analysis, the average federal civilian worker now earns double what private-sector workers earn when factoring in wages and benefits ($119,982 vs. $59,909). And the gap is increasing.  According to Chris Edwards of the Cato Institute, in 2000, the average federal worker earned 66 percent more in total compensation than the average private-sector worker. By 2008, that ratio had risen to 100 percent. That’s serious money.
Peter Orszag, the soon to be leaving OMB director, has  explained the differences in pay by saying that public employees have more diplomas (probably implying that they are smarter) than private employees:

But the truth is that a comparison of federal and private-sector pay, even by occupation, is misleading because the employees hired by the federal government often have higher levels of education than their counterparts in the private sector — even within the same occupations.  When you factor in the education and experience of the federal workforce, there is no statistically significant difference in average pay levels.

Translation: We are better than you.

Edwards, however, shows this is nonsense. He writes:

Some people argue that the federal government has a unique high-end workforce, which deserves to be paid handsomely. But let’s consider some ordinary and mundane offices in the U.S. Department of Agriculture. In 2010, the USDA’s Office of Communications employed 77 people and paid $9 million in wages and benefits. That works out to $117,000 each for these public relations workers, which is close to the overall federal compensation average. Or consider that the 62 employees of the USDA’s Office of Chief Economist earned an average $177,000 each in wages and benefits in 2010. It isn’t just rocket scientists that are earning high federal compensation, it is also workers in many run-of-the-mill bureaucratic jobs.
More importantly, the federal workforce has always had a heavy contingent of skilled professionals such as lawyers. So that is not new, and thus it cannot explain the dramatically faster growth in federal compensation compared to private compensation [...].

Besides, if these diplomas are what gave is the health care reform, the financial bill making its way to Congress and the stimulus, then I would argue that we would be better off if  high-school dropouts to run Congress.
That being said, if bureaucrats have job security, their workforce grows during recession, and they make increasingly more money, being a proud public sector employee should become your little ones’ dream. In this context, wanting to be a fireman or a princess is so yesterday. (Big Government)

So, government apparatchiks (“agent of the apparatus”) are prospering.
Unions get bail outs, exemptions from taxes you’ll be paying, and special deals. Because they are part of the base of the party.
Union Pensions are bankrupting companies and states everywhere. So what. Big Deal.
The Hispanics are being pandered because they are also the base of the party. So Obama’s campaign speech last week on Illegal Immigration was for them, not you.
So if you’re a party appartchik or a wanna-be apparatchik, you’re In like Flint.
But government gets it’s money from taxes.
Only 50% of people even pay taxes.
But hey, if you’re unemployed, the government will pay you to be unemployed and dependent on them.

Persistent unemployment nationwide is threatening to inhibit consumer spending. The latest figures from the government on Friday underscored the depth of the problem, with the economy adding only 83,000 private sector jobs.
There was no relief in sight from Washington, either. Congress left on recess Friday having failed to pass legislation that would have extended unemployment benefits for hundreds of thousands of Americans.
On the small-business side, credit concerns are keeping some companies from spending. And on the consumer side, while spending and confidence numbers continue to be weak, personal income has risen for three months straight and savings rates are relatively high. That suggests people now have cash but are just sitting on it.
So they’ll just print more money. Who cares.
It’s not like they want the private sector to create jobs, not really.
Obama has been “focused on jobs” for 18 months now. And you can smell the rotting corpse of neglect and contempt from here.
But “he cares”…


When Obama could have passed comprehensive immigration reform – when he still had 60 Senate Democrats – he didn’t lift a finger to push it. Now that he can’t pass it – it is too late in the year, he doesn’t have 60 votes, and many Democrats will defect – he aggressively pushes it in a national speech.
The opportunism and hypocrisy of his attempt to manipulate America’s Latinos into forgetting his previous inaction is transparent and obvious. Polls show him losing Hispanics due to high and continuing unemployment and losing Congressional seats in the bargain, so Obama has dug up the immigration proposals of former President George W. Bush, dusted them off, and made them his own. He knows it won’t pass. But he hopes that it will reignite Latino enthusiasm for his failing presidency and anger at Republicans for frustrating immigration reform.(Dick Morris)

It was just the latest in cynical political ploys.
Pure Politics. No actual conviction.
So the bottom line is, guess what is likely to be one of  the next great “bubble” to burst.
You got it, Government Apparatchiks and their dependents.
And guess who’s going to bail them out!
Now that’s “Hope and Change” for ya…

Greece-ing The Skids

WASHINGTON (AP) – Your parents were right. Money can’t buy you happiness.
That was the message from the Federal Reserve chairman on Saturday to graduates of the University of South Carolina.

Or was it?

“We all know that getting a better-paying job is one of the main reasons to go to college. … But if you are ever tempted to go into a field or take a job only because the pay is high and for no other reason, be careful!” Ben Bernanke said in his commencement address.
“Having a larger income is exciting at first, but as you get used to your new standard of living and as you associate with other people in your new income bracket, the thrill quickly wears off,” he said.'

Unless you’re a  Liberal that is…
If you’re rich, you’re above it all. But we will demonize only Republicans.
If you’re not, you are told you’re entitled to other people’s money, so don’t worry about it.

But doesn’t this sound a lot like Michelle Obama’s Zanesville speech that got her in so much hot water that she was removed from the campaign trail.
“The salaries don’t keep up with the cost of paying off the debt, so you’re in your 40s, still paying off your debt at a time when you have to save for your kids,” she says.
“Barack and I were in that position,” she continues. “The only reason we’re not in that position is that Barack wrote two best-selling books… It was like Jack and his magic beans. But up until a few years ago, we were struggling to figure out how we would save for our kids.” A former attorney with the white-shoe Chicago firm of Sidley & Austin, Obama explains that she and her husband made the choice to give up lucrative jobs in favor of community service. “We left corporate America, which is a lot of what we’re asking young people to do,” she tells the women. “Don’t go into corporate America. You know, become teachers. Work for the community. Be social workers. Be a nurse. Those are the careers that we need, and we’re encouraging our young people to do that. But if you make that choice, as we did, to move out of the money-making industry into the helping industry, then your salaries respond.” Faced with that reality, she adds, “many of our bright stars are going into corporate law or hedge-fund management.”
Collectively, according to the IRS, they made $5 Million Dollars last year.
I guess that wasn’t so evil.
The message, don’t strive so hard to succeed.
Lower your expectations.
Because, we already know we are living so far beyond our means as a government that eventually,  in 10 or 20 years or less you’ll be Greece’d.
So better to lower the expectations now so they can lessen the violence when the fecal matter hits the air circulation device.

In Greece:
They are angry because for years they have been encouraged to live beyond their means, taking advantage of the cheap credit on offer since Greece joined the euro in 2001. Now, the rug is being pulled from under their feet. People who have taken out mortgages to buy homes, loans to purchase cars and credit cards to pay for overpriced basic goods are being asked to meet all these commitments with a much lower income than they had budgeted for.

Fannie and Freddie anyone??
UK Guardian: Saddled with burgeoning public sectors (which help sustain muscular trade unions)– SEIU, UAW, NEA anyone?

This is not what angers Greeks most, though. What you will hear time after time, both at the protests and at workplaces and cafes, is that this crisis confirms the failure of the country’s political system. In other words, that for years politicians have been bleeding the country dry, looking after themselves and their friends and failing to build a robust economy and a country equipped to deal with the challenges of the 21st century.


There is anger at the pervasive, high-level corruption for which no politician is ever punished. People are also furious that no government has ever tackled influence-peddling in the public sector. The Greek branch of Transparency International estimated that Greeks paid almost euro800 million ($1 billion) in bribes last year. This is another drain on household budgets but more importantly it creates a sense of injustice, a sense that to get anything done you have to play by the system’s warped rules.
Sound familiar??
This feeling of unfairness is compounded when tax evasion also goes unpunished.
“Turbo Tax” Geithner anyone? Barney Frank? Charlie Rangel??
Salaried professionals and civil servants have their wages taxed at source but many Greeks do not. And, what they declare often bears no resemblance to what they actually earn. The government believes that tax evasion could be worth up to euro30 billion ($38 billion) a year, or 12 percent of the country’s GDP. Allowing one part of the population to consistently get away without paying while Greece’s public finances are propped up by the same people all the time creates incredible resentment. That’s why you hear many Greeks say they will put up with the austerity measures if the government ensures that everybody pays their fair share. If people believe that the usual suspects, who in many cases are wealthy businessmen, doctors and lawyers, are allowed to get away with it, then the level of anger will go up several notches.

47% of all Americans pay NO TAXES whatsover!
Union workers and civil servant can make more in retirement than on the job.
But we aren’t going down that road…oh no…the Nazi, Racist, Violent Tea Baggers are just wrong.


Some of the measures imposed on Greece by the EU in order to bail them out (BBC):
The plans hope to achieve budget cuts of 30bn euros over three years – with the goal of cutting Greece’s public deficit to less than 3% of GDP by 2014. It currently stands at 13.6%.
PAY CUTS
The government is planning a freeze pay for all public sector workers.
Some pay cuts will also be implemented, and public sector contract workers are set to lose their jobs.
This follows several years of continuous increases in pay, with salaries rising by an average of 30% since 2006.
Annual bonus payments – paid as 13th and 14th month salaries – will also be scrapped for high earners and capped for lower earners.
Other bonuses will be scrapped.
In the private sector, the legal maximum number of people companies can lay off each month will be doubled from 2% of personnel to 4%.

PENSIONS
The reforms seek to prevent early retirement. Currently the average age of retirement in Greece is 61, though it is not uncommon for public sector workers to retire in their 50s.
Under the planned changes, the retirement age, which is currently 65 years for men and 60 years for women, will be linked to average life expectancy.
In addition, the minimum number of years someone will have had to have worked to qualify for a full pension will rise to 40 years from 37.
Pensions will also be reduced so that they reflect a worker’s average working pay rather than their final salary.
TAX REFORM
VAT will be increased to 23% from 21% – just the latest in a series of recent increases.
Indirect taxes – including those on alcohol, fuel and cigarettes – will see a 10% rise.
There will also be a clamp-down on tax evasion – widely regarded as a big problem in Greece – and on untaxed illegal construction.
Tax-evasion alone is estimated to cost the Greek government at least 20bn euros a year.
PRIVATISATION
In the longer-term, the government will look to reduce the reliance of the Greek economy on the public sector, reducing the number of people on the public payroll.
This will require growth in the private sector, and possible privatisation of some industries.

Getting eerily uncomfortable I hope.
See our future if  Obama and The Democrats (and Republicans too) are not stopped.
According to a December report from the BLS, state and local government employers spent an average of $39.83 per hour worked ($26.24 for wages and $13.60 for benefits) for total employee compensation in September 2009. Total employer compensation costs for private industry workers averaged $27.49 per hour ($19.45 for wages and $8.05 for benefits), see chart above. In other words, government employees make 45% more on average than private sector employees.
According to an analysis by USAToday (thanks to Michael Jahr for the pointer), “The number of federal workers earning six-figure salaries has exploded during the recession, according to an analysis of federal salary data.” For example, the number of federal employees making $100,000 or more has increased by 120,595, from 262,163 employees in December 2007 to 382,758 in June 2009, for a 46% increase. The number of federal workers making $150,000 or more has more than doubled since the recession started, from about 30,000 to more than 66,000 (see chart above).
USA Today also reports that “When the recession started, the Transportation Department had only one person earning a salary of $170,000 or more. Eighteen months later, 1,690 employees had salaries above $170,000.” That’s a 168,900% increase!!

The Unemployment rate in the public sector is about 3%.
It’s been near 10% for a very long time in the real world.
And do the Democrats look concerned?
Do the Republicans?
Do they?

Josh Barro writes for the Manhattan Institute about the “Two Americas” and the “sharp difference between two classes of employees: those who work in the private sector and those who work for the government. Workers in the public sector have experienced a very different recession from those in the private sector.”
So is this Greece-ing the skids for what the government knows is coming if things don’t change?
I think so.