Christopher Grey is CFO and co-founder of CapLinked, an online platform for connecting entrepreneurs and investors. He was a senior executive and managing partner in private equity, finance and banking for 15 years and directly involved in the origination and management of billions of dollars of debt and equity investments in various industries. He founded Crestridge Investments and Third Wave Partners, and was managing director of Emigrant Bank, the nation'sMore ↓Less ↑
What happens when everybody works for the government?
This question may seem outrageous, but that seems to be where we’re headed. Recent statistics show that there are now more government employees than workers in manufacturing, utilities, mining, fishing, forestry and construction combined. There are 22.5 million government workers in the U.S., or over 22 percent of the entire employed labor force.
Many states are going bankrupt and the federal government is running historic deficits. At the same time, nearly 50 percent of all government spending is just to pay the salaries and benefits of government employees.
A society like ours in which the share of government workers has nearly doubled in the past generation obviously is a civilization in decline. Dynamic, growing economies like China, India, Brazil, and Russia are shrinking their government sectors and increasing their private sectors. Dying economies like ours, Japan, and Western Europe just keep increasing government and killing the free market.
No wonder that things just keep getting worse in the developed world. No economy can grow or be healthy when the government is growing out of control like this. Large government sectors steal resources from productive enterprises, typically produce little to nothing of value, and actually go out their way to regulate and destroy private businesses.
Further, they lobby for higher and higher taxes to make sure that there’s enough money to pay their salaries and benefits and keep increasing their budgets. It’s a downward spiral that only ends up in one place. That is the total collapse of the economy and, even worse, the civil society that holds us together.
Why should anybody bother to work hard just so government workers can take all their money? People realize this game and stop working. We know what happens when everyone works for the government.
Nobody works at all.
This is why tens of millions of people starved in communist China and the Soviet Union. It’s also why North Korea is impoverished while South Korea grows wealthier by the day.
It would be nice to live a world in which nobody had to work and everybody could live like kings off of the work of other people. This is the magic formula of socialism that public sectors unions are trying to convince people can work for everyone.
It never has.
It never will.
It only works when there are enough suckers to pay the taxes to support all of the people who aren’t producing anything.
Already in California 0.5 percent of the people pay 50 percent of the taxes. At what point does this small number of households simply decide to leave? It could possibly happen very soon if things don’t get reformed quickly. Do the public sector unions care?
Of course not. They would rather see the state bankrupt and eliminate services to the poor, the sick, and children than cut their bloated salaries and benefits that are estimated to be 60 percent or more higher than what they would make in the private sector.
Hopefully the voters will see through all the lies about how government workers are just regular middle class people trying to make a living.
They are not. They are paid the equivalent of six figure salaries, including benefits, according to numerous third party analyses that have been published. This is to do jobs that typically a high school graduate (or even a dropout) could do.
Time is running out for voters to wake up and demand an end to this ever-expanding public sector that is bleeding our economy to death and destroying the chance for our children to have any future.