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Fred Redmond

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GOP Vilifies Workers Who Serve the Public

Posted: 8/17/10

Government workers are the latest victims of a GOP smear campaign. Right-wing strategists have revived the tactic of false accusation in a vain attempt to keep voters from noticing that the policies of the current batch of Republican candidates mirror those of the batch who laid waste to our economy.

From Sen. Scott Brown, R-Mass, to Indiana Governor Mitch Daniels, Republicans are lying about government workers' wages and work habits in an attempt to convince voters that the source of the country's economic woes is public sectors workers -- the very people who investigate child abuse, monitor nursing homes, enforce workplace health and safety, repair roads, protect our water and air, teach our kids, maintain our parks, clean our schools, and mail Grandma's social security check.

The United Steelworkers union represents 26,000 public sector workers, ranging from lawyers who serve as public defenders to workers who ensure sewerage treatment plants don't pollute. The union will not tolerate the GOP's baseless attacks on our members. USW members who work in service to the public will discuss additional responses during the USW Public Sector Conference Oct. 21 through 23 at the Pittsburgh Hilton Hotel.

Republican policies of deregulation left our jobs, our pensions and the economy at the mercy of avaricious and incompetent Wall Street CEOs and put our environment and worker safety in the hands of cowboy capitalists like BP. Theirs were the policies that enriched corporations while gutting worker safety rules and enforcement, increasing the likelihood of worker deaths on oil platforms, in refineries and in coal mines.

For Republicans, public sector workers are doubly repulsive. A significant percentage are unionized, and Republicans hate unions. And all of public sector workers are the face of government, which, of course, Republicans want to drown in a bathtub.

For the past several months, the GOP has declared open season on the public service workers they so despise, portraying them as over paid and underworked.

Amy Traub, Research Director for the Drum Major Institute for Public Policy, wrote about the Republican assertions. "It would be an alarming story," she said, "if it were true."

Research has shown it is not.

As Daniel Patrick Moynihan, the late senator from New York and Harvard professor, observed, "Everyone is entitled to his own opinion, but not his own facts."

The National Institute for Retirement Security (NIRS) and the Council on State and Local Government Excellence (COS & LGE) released a jointly-funded study on this topic just as the Republican sound machine revved up this spring. On the facts, they found that every one of the Republican assertions is false.

Analyzing data from the U.S. Government's National Compensation Survey, their economists found that when factors such as education and work experience are taken into account, state and local employees earn less than their counterparts in the private sector. To be exact, state employees earn 11 percent less than comparable private sector workers. Employees of city and county governments earn 12 percent less than their private sector counterparts.

Pensions and health insurance coverage make up a slightly greater share of public employees' overall compensation than those benefits do for private sector employees, but when those costs are included, state and local employees still wind up with less total compensation -- 6.8 and 7.4 per cent less, respectively.

In addition, while Republicans are blasting public sector workers, they voted against reforming Wall Street, where compensation and bonuses remain immorally high even after taxpayers footed a bailout. Far too many of Wall Street's investment bankers take home tens of millions annually. The last CEO of Merrill Lynch, John Thain, spent more than $1 million redecorating his office while Merrill's value plummeted. Like investment bankers, too many CEOs at health insurance, pharmaceutical and other corporations are paid millions in annual compensation.

Meanwhile, many public employees can't afford to buy homes in most major U.S. housing markets. A study by the Center for Housing Policy found that police officers and elementary school teachers don't earn enough to buy a typical house in two out of five metro areas. Firefighters and librarians can't afford the median home in New York, Los Angeles and Chicago metropolitan areas. A school-bus driver can't afford the rent on a standard two-bedroom apartment anywhere.

Voter anger is more appropriately directed at Republicans and their corporate cronies -- the real privileged class that has managed to make the rest of us pay for the economically-devastating consequences of their greedy risk-taking. Republicans' American dream consists of slashing the family-supporting wages of workers in manufacturing, public service and health care to minimum wage. Their intent is to drag down the workers' earnings and the American economy, as they did while Bush held office.

Ancient Chinese strategist Sun Tzu wrote that the surest way to defeat an opposing army is to cause them to fight amongst themselves. The greatest danger for labor is Republicans succeeding in their quest to pit private sector workers against their public sector brothers and sisters.

If they can divide us; if they can sow suspicion and jealousy among us, misery will be our lot. If, on the other hand, we can see the greed and gross irresponsibility at the very top of our economy and among those who carry their cause in Congress, then we have a chance to re-write the rules and bring back middle-class prosperity for ourselves and this nation.

 
Government workers are the latest victims of a GOP smear campaign. Right-wing strategists have revived the tactic of false accusation in a vain attempt to keep voters from noticing that the policies o...
Government workers are the latest victims of a GOP smear campaign. Right-wing strategists have revived the tactic of false accusation in a vain attempt to keep voters from noticing that the policies o...
 
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HUFFPOST SUPER USER
dbrett480
09:32 PM on 08/25/2010
Thanks for the column. Republican­s keep perpetuati­ng the myth that pensions are destroying our country while they continue to hand out tax breaks to their big business supporters­.
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HUFFPOST SUPER USER
Skeptical Patriot
08:16 PM on 08/18/2010
Not only is the study skewed but if you take into account the stickiness of employment­, the difference is even greater. My major complaint with public sector employees is the lack of accountabi­lity. While there is no doubt there are many hard working public sector employees, they often are in "monopoly" jobs where the lack of competitiv­e pressures creates a lack of incentives for innovation­.
12:45 PM on 08/18/2010
So let’s be clear about the study presented. The study itself states that state and local workers earn a higher hourly wage than private sector employees ($21.19 state, $21.02 local, $18.98 private).

The study then adjusts the salaries for age, education, experience and race. This “adjusted” salary is the basis for the claim that public employees earn less.

Lastly, the study looks at benefits. The study comes to the conclusion that public employees receive a larger percentage of their total income in benefits. Unfortunat­ely they make no adjustment for the difference between a defined benefit plan and a defined contributi­ons plan. There are numerous studies that show a defined benefit plan is “worth” more than a defined contributi­on plan even when both are funded with the same dollars. The issue being the fact that the volatility of returns in a defined contributi­on plan cause uncertaint­y. Uncertaint­y (or risk) means that you should earn a higher return for more uncertaint­y. For example, the local fire district uses a 7.8% discount factor on their investment fund, implying they will earn 7.8% each and every year, into perpetuity­. If they fail to earn that return, the taxpayer is obligated to stump up the extra cash as it did.

Why is the value of a guaranteed 7.8% return not included in the value of the benefits? Because it would clearly show that public employees not only earn more dollars than private employees, they get wonderful benefits as well.
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BBackSoon
Hello, I must be going.
02:39 PM on 08/18/2010
So I guess the Private Sector jobs take into account all of the $10 an hour jobs that seem to be the only ones available now? Wal Mart is the largest employer in the US and the average wage is in the $11 - $12 range, and that is under the poverty level for a family. We should not be proud of that.

That would depress the average in a big way.

Should we also factor in the fact that Public workers had guaranteed Cost of Living raises where as during the last decade many private workers were not given Cost of Living raises?

In the last Decade Big Business has made massive profits, in part by offshoring jobs and wage stagnation on the jobs that did remain, and we should all be upset that Public Workers got real increases.

Nope, I don't have any animosity toward them, I am upset with the collusion that Big Business has participat­ed in that has driven down wages.
11:20 PM on 08/18/2010
So a $10 an hour job at Wal-Mart is different from (what should be) a $10 an hour job at the post office? By paying $12 an hour Wal-Mart is able to keep the prices on goods down so that the masses buy crap there. Don't buy the crap and Wl-Mart will change its business model and look like Target, which pays more. The issue is that people like to buy cheap stuff.

Big Business. Hmm. Not sure who that is. All the revenues to business are paid out (companies don't keep huge cash balances, with the exception of Apple I suppose) to employees, suppliers and shareholde­rs. I assume you have animosity to the executives of the companies who have been earning more than they should. Perhaps you dislike the shareholde­rs, but if you look now a days that is mostly pension funds of current and future retirees.

I do have animosity to the public employee unions because they have an incentive to corrupt the elected officials, especially at the local level. Because the purchased elected officials cannot push cash to the union in an obvious way they have built benefit packages that hide the true cost of the employees and the taxpayers will end up with significan­tly reduced services every time the economy hits a hiccup.
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SF TKF
Cthulhu thinks you'd make a nice sandwich.
05:16 PM on 08/18/2010
Sorry, but most public sector workers no longer get a "defined" benefit. They get a defined contributi­on plan (401K) just like everybody else. And comparing their average salaries to the average salary doesn’t work, because their jobs require more experience and education. You have to compare apples to apples (and when you do, the private sector always pays more). The one thing the public sector has is job security, but even that is starting to appear shaky.
11:10 PM on 08/18/2010
According to federal data 88% of public employees have defined benefit plans while only 32% of private employees do.

I agree with the concept that average to average does not work, but to conclude that they require "more experience and education" from the fact that they are older and have more education may be drawing the wrong conclusion­. If you pay people more if they have more education (regardles­s if they use it), which is true for most teachers union jobs, you will encourage people to get more education. That does not make them better at what they do (it may, but it is not a cause and effect).
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HUFFPOST SUPER USER
doodlebug2
07:28 AM on 08/18/2010
I got a question for ya?
I work with union labor (ila) but I am managment, explain to me the reason so many dolts vote R that are union members? I am in Virginia, answer, the scary black guy.
10:09 AM on 08/18/2010
What are you scared of?
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HUFFPOST SUPER USER
doodlebug2
12:51 PM on 08/18/2010
Nothing
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BBackSoon
Hello, I must be going.
02:44 PM on 08/18/2010
You are not helping.
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BBackSoon
Hello, I must be going.
02:46 PM on 08/18/2010
I know many of these people also. People that make $40k to $80k and feel that someday they might be rich so they don't want to upset the status-quo­.
05:09 AM on 08/18/2010
It figures. Is it cruel? Is it crazy? Is it untrue? Then we love it!
11:23 PM on 08/17/2010
Sure, and Democrats support offshore of jobs to China. And Democrats support wage and job killing H-1B work visas. So what?
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BBackSoon
Hello, I must be going.
02:47 PM on 08/18/2010
The Repubs had several years to revers these things, but they simply put in fast lanes.
Javalation
Laughing in a Daydream
05:46 PM on 08/17/2010
The purpose for the misdirecti­on is to attack Democrats, as all of their advertisem­ents do, but also to take public attention away from the people who have shipped our jobs overseas, and downsized the rest. US Corps are sitting on a record amount of cash rather than hiring. My guess is that the jobs are gone forever, unless tariffs are imposed on all of the strategies that send our work overseas..­. unless of course everyone is willing to work matching what's paid in third world countries.
07:28 PM on 08/17/2010
Why do you think businesses are not investing right now? The reason is uncertaint­y of the market. It is the same reason why consumers are not spending.
08:47 AM on 08/18/2010
Why didn't they invest for all those years when their profits were through the roof and the middle class was stagnating­? What was the excuse then? They got a bunch of tax breaks. No investment­. They got a bunch fo deregulati­on. No investment­. In fact despite the decade long GOP give away to big business and the correspond­ing massive fortunes made we lost jobs, a lot of jobs, under the GOP trickle down plan. Why?
09:00 PM on 08/17/2010
You are right, jobs are gone forever unless the government stops vilifying business and works with business to create jobs. That would mean having a sane, rational policy that does not penalize them for putting their money to work in the States. Since being in office, Obama has done nothing but be devisive in this area, pitting the government angainst big bad business. I do not blame them for saving up for a rainy day... They certainly are on the way with all the wrong economic moves that Debtbama is making.

Kai
missprissanna
the weight of the news nearly broke my back
10:39 AM on 08/18/2010
"unless the government stops vilifying business and works with business to create jobs"

As I recall, big business was bailed out, they have been racking up record profits and holding on to trillions of dollars, because of UNCERTAINT­Y.

Seems to me that if I caused this man made disaster I should EXPECT to be demonized and held accountabl­e, instead of being bailed out.

Uncertaint­y is being older than 50, out of work for several years, with no hope of recovery..­...THAT IS UNCERTAINT­Y and that's what many people are dealing with everyday..­..uncertai­n of where the next meal is coming from, uncertain what you have left to sell to pay the next mortgage payment, begging for yard work or maid work....Ma­in Street has been demonized to the point of destructio­n.

Personally I'm sick to death of the whining of big business, they are acting worse than a spoiled brat. We need jobs, private sector, gov jobs....JO­BS now.
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BBackSoon
Hello, I must be going.
02:59 PM on 08/18/2010
Kai,

Hello again,

I don't believe that business is as concerned as they say they are. I have read a few stories that business, mainly big business has made much more substantia­l cuts to personnel than was warranted by the downturn.

And the fact that so many businesses are still producing good profits proves that Execs will do whatever they have to do to keep getting bonuses.
HUFFPOST SUPER USER
Longtimeliberal
05:26 PM on 08/17/2010
I am a govt worker, have a Masters degree, work with ex-offende­rs who are mentally ill and make a big $30K a year. I spend incredible amts of time and energy and with great success. A 95% succcess rate in helping facilitate people staying on meds and out of jail which saves the public more than my salary.