Stat Of The Day: America's New Growth IndustryJul 29, 2010
Time for our every-now-and-then-peek into the world of finance, fiscal policy and macroeconomics — and their affect on the body politic. The widely quoted Kent Engelke (see Wall Street Journal, CNBC, Dow Jones, etc.), the chief economics strategist and managing director of Richmond-based Capitol Securities Management, today wrote this in his daily morning commentary, regarding one of the causes of out-of-control government spending at all levels:
About twenty years ago government workers gained incredible power by being allowed to unionize demanding private sector pay while maintaining generous government benefits under the guise that such were required to attract top talent. Twenty years later I believe the pendulum has swung too far. As per the Bureau of Labor Statistics total employer compensation costs are $27.73 per hour in business and $39.81 in state and local government. Wow! Great pay, great benefits and a small probability of losing one’s job. Something is amiss.
Amiss, indeed. In fact, while the private sector is losing jobs, the public sector is adding jobs. Thank you, "stimulus" bill.) The only thing it is stimulating is the growth of government. Six of the wealthiest localities in the country now are those on the outskirts of Washington, D.C., including: Fairfax, Arlington, Stafford and Prince William counties, as well as the city of Alexandria (see Forbes). Not that this has gone unnoticed by the public at large. As Engelke writes, there is a political consequence to the Left's promiscuous unionization of what once was known as public service:
As all polls suggest, most have little regard for Congress reflected by 15% approval ratings. The President’s approval ratings are the lowest of any President at this time in any administration. The major reasons — (lack of) jobs and out of control fiscal spending.
Lack of jobs, that is, except for those in government, America's new growth industry.