Wednesday, June 25, 2008

One Root of the Problem

From Peter Schiff, the president of Euro Pacific Capital and a frequent commentator on financial news networks such as CNBC and FBN:
"More Americans now work for government than in manufacturing."
Now, whose fault is that?

Oh, and by the way,
federal government employees receive an average compensation twice that of the average private-sector employee.

1 comment:

Paul said...

Jim:

You and I both pay pretty close attention to school economics, although I'm newer to the game than you. One thing that has become clear to me over the past couple of years of immersing myself in this is that there is strong movement in our state to shift the school funding decisions from the voters of local districts to state-level elected officials - such as the State Bd of Ed, whose members we vote for but barely know.

The impetus is not because it's a better funding mechanism than what we have now, but rather because it essentially makes teachers employees of the State, and bringing them under the protective umbrella of state politics.

More importantly, it adds an other layer of indirectness to the consumer-supplier relationship which, contrary to Kathie Bracy's theory, makes the suppliers less, not more responsive to the consumers.