FOX News contributor Dagen McDowell says the US could save $340 Billion by cutting public wages back down to private sector pay rates:
“The pay and benefits for the public worker is a $1.45 compared to a dollar in the private sector. So there’s a 45% premium there… If you cut the pay and made it equal, the benefits and the pay with private sector workers, it would save about $340 billion. That’s enough to fill the budget holes in every state over the next two years, if we were just on the same playing field.”
According to Cato Institute: In June 2009, total compensation per hour was $39.66 in the public sector, which was 45 percent greater than the average $27.42 per hour in the private sector. The public sector advantage in average wages was 34 percent, while the advantage in benefits was a huge 70 percent… Average compensation in the private sector was $59,909 in 2008, including $50,028 in wages and $9,881 in benefits. Average compensation in the public sector was $67,812, including $52,051 in wages and $15,761 in benefits.
Public sector workers have a substantial pay advantage over private sector workers. (Cato)
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Democrats last week voted to award government workers a $30 billion ten year raise.