Bureaucrats Irked: Heritage Finds They Are Paid Too Much
In an interview with the Washington Post, the Director of the Office of Personnel Management, John Berry, directly credits The Heritage Foundation as having moved public opinion on the issue of overpayment of federal officials:
He said he was frustrated that "the Heritage and Cato misinformation campaign has obviously gained traction." The two Washington, D.C., think tanks have produced widely discussed reports indicating that federal workers are paid too much. A "pretty prolonged misinformation campaign over the last six month leading up to this," [Berry] said, "has worked."
Berry was steaming over that last point.
The Heritage Foundation has been at the forefront of the overpayment issue. Heritage research has found that the average federal employee earns an annual salary almost 60% higher than the average private-sector employee — $79,000 vs. $50,000. Even after controlling for education and experience, federal employees get paid significantly better — 22% more per hour, on average — than private-sector workers. Once you add up the benefits, the gap in total compensation rises even higher — 30% to 40% above comparable private-sector workers.
But defenders of the federal pay system, including the OPM, have mischaracterized our analyses by suggesting they ignore skill differences between the public and private sectors, resulting in an "apples to oranges" comparison. On the contrary, Heritage has carefully accounted for skill differences, always comparing apples to apples.
In a letter the Washington Post this week, Heritage economist Bill Beach directly addresses those critical of our analysis:
Ignoring this evidence [of standard practice in calibrating data], government and union representatives quoted in your column attack our findings by relying on a survey that examines job descriptions. But federal workers tend to be less skilled within an occupation level - a senior accountant may qualify only as a junior accountant in the private sector. So economists look at skills and experience, not just official duties.
> Other Heritage Work of Note
The Heritage Foundation has long called on Congress to defund liberal mouthpiece NPR. Writing on FoxNews.com, Heritage vice president Mike Gonzalez argues that "National Public Radio's dismissal of Juan Williams is a powerful indictment of NPR's practices and corporate culture. Small wonder voices are once again calling for the federal government to defund NPR—which gets 16% of its budget from taxpayers."
President Obama sold his new health care plan to the American public on the premise that it would help many Americans. But according to Heritage analysis, the reality is quite different. "Unfortunately, Obamacare's new federally mandated, essential benefits package will diminish new job opportunities, especially for low-income workers," writes Kathryn Nix. "This is expected to occur because the new law requires employers to offer health care coverage or pay a penalty."
North Korea has declared that its military might had increased "1000-fold." This claim coincides with the upcoming transition of authority from dictator Kim Jong-Il to his son, Kim Jong-un. Writing in the Boston Herald, Heritage analyst Peter Brookes argues that the change in power will not result in a change in policy. "Even with a new king . . . er, Kim in charge in North Korea, nukes will stay front and center of Pyongyang's policies and priorities, which is unfortunate for not only the hungry North Korean people but also for the rest of the world."
Even though Venezuelan President Hugo Chavez has signed a nuclear deal with Russia, President Obama issued a statement expressing unconcern about the country's nuclear ambitions. "The fundamental problem with Obama's statement and his enormous lack of judgment is the underlying assumption that Venezuela, under President Chávez, will act responsibly," writes Heritage's Ray Walser. "In fact, Chávez has a long and notorious record of acting in exactly the opposite fashion, at home and abroad."
In another attempt to advance a radical green agenda, liberals are pushing for renewable electricity standards. Heritage's Conn Carroll reports that these new regulations are just as harmful as the previous cap-and-trade bill. "A Heritage Foundation analysis of 22.5 % RES by 2025 found: 1) household electricity prices would jump 36%; 2) industry prices would rise by 60%; 3) national income (GDP) would be cut by $5.2 trillion between 2012 and 2035; and most importantly 4) RES would kill more than 1,000,000 jobs."
Conservatives are projected to make substantial gains after the elections in two weeks. If this occurs, they will have several critical items to address, among them earmark reform. "Nothing fuels the passion of fiscal conservatives more than their dislike of pork-barrel projects," writes Heritage's Robert Bluey. "For years earmarks have served as a gateway drug to higher spending."
> In Other News
The federal government accrued an 8.2 percent return on its Wall Street bailouts, a rate higher than the return on U.S. Treasury Bonds. We should remember, though, that the purpose of government is not to "invest" on behalf of taxpayers.
Great Britain has decided to continue with its "Big Brother" plans to track phone and Internet communications of its citizens.
Bethany Murphy is a writer for MyHeritage.org—a website for members and supporters of The Heritage Foundation. Nathaniel Ward; Amanda Reinecker and Andrew Vitaliti, a Heritage intern, contributed to this report.
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