My Daddy's Common Sense

Is common sense no more?

Public Sector vs. Private Sector

Since the 2008 election, the public sector, or government jobs, has expanded by some 140,000 jobs. That would be a very large company by any standards. It has been published that the average salary for government employees is $77,000 and the same job in the private sector is $52,000.  Hmm, Hmm, that is a pretty good spread!

For the sake of this example, let’s say, the public sector is $80,000 and the private sector is $55,000, just to work in round numbers. Here we go:   A.  We hire person “X” in the public sector (gov. job) and we will pay him $80,000; and for the sake of argument, let’s say he is in the 20 percent tax range, which may be high, but let’s say. Under that example the person would pay $16,000 in taxes, leaving a $64,000 drain on the US economy.  B.  Now lets hire that same person “X” in the private sector and we will pay him $55,000, and let’s assume he also is in the same 20 percent tax range, which may be high, but let’s just say. Under this example the person would pay $11,000 in taxes, thereby being a positive in cash flow for the US economy.

Simply by hiring more government employees instead of private sector employees, we go from an $11,000 profit to the Government to a $64,000 liability. That is a $75,000 turn around at the end result. Any idiot can stand on the corner and give money away as the Government is doing; but, it takes some real skill to manage and hire people, produce a product and sell it at a profit. Should I mention here that might be called Common Sense?

It just makes my blood boil to think that we could have an $11,000 asset, but instead opt for a $64,000 liability. Remember, that has been done 140,000 times since President Obama assumed the responsibility for the hiring and firing.

If you aren’t smart enough to follow this, then please break it down to how much money you have in your pocket now vs. back then, and vote accordingly using “Common Sense“.

Disclaimer: This is for example purposes only. My Daddy never claimed to ba a great mathematician, just a common man with Common Sense.


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