One aspect of the "social contract" was that while government workers had job security, they wouldn't make as much as private sector workers. Not surprisingly, given who is in control, over the years we've seen that element of the social contract degrade with a wealth transfer from the private sector to the government. The result is that we now have government employees who have better retirement and salary and benefits and job security than private employees. This disparity is breeding discontent, which has been recognized even by the Clinton-era Comptroller David Walker:
David Walker, the U.S. comptroller appointed by President Bill Clinton who continued in the role under George Bush, on Friday gave a bracing indictment of the pension and salary benefits being rewarded to government workers at the federal, state and local level. Walker said that public sector workers are growing prosperous on the back of private sector workers.
“There is a huge gap. State and local plans on average … are much more lucrative than typical plans for employees. State and local government employees, on average, have greater job security than people in the private sector. And state and local government employees, in the middle of government, in many cases make more money than their private sector counterparts,” Walker said during a speech at the U.S. Chamber of Commerce. According to Pew numbers provided by the Chamber, the budget gap to cover state employees’ benefits totals $1 trillion.
“Therefore, if governments expect taxpayers to pay more taxes to fund lucrative benefit programs that are much better than the average employee gets, in jobs that more job security and in some cases make more money than their private sector counterparts, that ain’t gonna happen,” he said. “But the only way it’s not going to happen is if there’s transparency and if the cover is blown, so that pressure is brought to bear to make changes.”


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