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How to save $21 billion a year

by Richard Atkinson
| April 23, 2009 11:00 PM

America is upset with the mind-numbing salaries and bonuses being paid on Wall Street, but is unaware of one of the greatest income inequities in the U.S. It has been fostered by Congress for years, and our congressmen not only support it but they enlarge it annually.

What is it? In 2007 the average compensation package for a federal government worker was $116,450, compared to $57,615 for a private sector worker (FedSmith.com).

That’s correct — a government worker earns more than 200 percent of what a private worker earns, and the divide is growing.

I know both sides of the issue because my career includes 22 years of military/federal government (no pension) and 25 years running a private business. With my experience, I feel pretty safe in saying that private workers work at least twice as hard and twice as efficiently with half the job guarantees the federal workers have.

Yet the federal pay is twice as much. I also know that several local businesses have recently cut their employees pay packages through pay and benefit reductions, but no one in Washinton, D.C., has even mentioned the idea of pay cuts for federal workers.

My proposal is simple — Congress should give the federal workers (1.8 million strong and growing) a 10 percent “haircut” and freeze their pay packages (as well as hiring) until the average private sector income equals the average federal income.

If my math is correct, this will save $21 billion annually — that’s right, $21 billion in 2010 and even more each and every successive year.

Sen. Max Baucus is the head of the finance committee in the Senate and could personally block any federal worker pay raise, but has not done so. In fact, he has probably voted for every one of them.

Sen. Jon Tester is aware of the situation because I have personally talked to him about it when he came to Whitefish, but has not yet voted on a federal raise.

Rep. Denny Rehberg has probably voted for these raises, too. Since all three have staff members that read local papers, I assume I will hear personally from someone.

If you feel that federal pay workers receiving twice as much as local hardworking people is wrong, please contact all three of our congressional members (Baucus, Tester and Rehberg) and find out why this has happened.

Or just give them a choice — do something about this inane federal worker “bonus” or look for a job in the private sector.

Richard Atkinson lives in Whitefish.