Government Employees Earn Almost Double The Average American

Government Employees Earn Almost Double The Average American, by Thomas Phippen.

The average government salary in 2016 was $83,072, according to a report on federal salaries from the Office of Personnel Management released in July.

By comparison, the average wage index for the U.S. in 2015, the most recent available calculation, was $48,098, according to the Social Security Administration. …

While the federal workforce is hardly representative of the entire U.S., the gap disparity between average salaries has been growing for some time. In 2001, the average government worker made 1.39 times what non-government employees made, but that ratio grew to 1.58 by the middle of 2016, according to BLS data compiled by Bloomberg News.

That’s ultimately because the wages of government employees are only partly determined by the market — rather they are set by other government employees deciding what they are worth — and the wages are paid from money coerced from the population.

On the other hand, wages in the private sector are under the discipline of the market, and the wages comes from voluntary transactions — there is a moral difference.

I wonder what the ratio is in Australia.