Saturday, April 19, 2008

"We do not delude ourselves that the public will be on our side, but…"

All other delusions are on the table. Gods of the Copybook Headings:

For decades public sector employees have fought a race to the top. One bunch would obtain a wage increase, a fact used by other PS unions to argue for an increase for their members. This cycle is seen in the private sector too, with one important caveat: productivity. In layman's terms: You can't make more than you make. If you create so much wealth, you cannot be paid more than that, otherwise someone else needs to foot the difference.
Read the rest here. See also the Canadian Taxpayers Federation:
During Premier McGuinty's tenure, Statistics Canada reports that private sector job creation has grown by 2.1%; whereas, the public sector has grown by 15.5%. There are now 101,882 more people employed by the provincial government than when Mr. McGuinty took power. That is triple the provincial population growth rate, which only grew by 5.3%. Over a similar time frame, the private sector only generated 108,000 net new jobs.


MothyJohn said...

There's another difference between government jobs and private sector jobs.

The private sector must pay its employees less than the amount of wealth the employee creates in order to make a profit.

The government is not about making a profit, therefore doesn't have this restriction.

basil said...

. . . and, therefore, government employees pay themselves more than they create.

MapMaster said...

...substantially more, I would add, since almost nothing government employees do creates wealth. How sustainable is McGuinty's employment centre plan going to be?

By the way, mothyjohn, what do you suppose becomes of profit?