This data is more than a year old and has undoubtedly gotten worse in the interim, all the more reason why it may be a rude awakening for many elected officials this November as more and more voters come to learn about the widening gap between public and private sector compensation and benefits as detailed in this report in USA Today.

Federal pay ahead of private industry

Federal employees earn higher average salaries than private-sector workers in more than eight out of 10 occupations, a USA TODAY analysis of federal data finds.Accountants, nurses, chemists, surveyors, cooks, clerks and janitors are among the wide range of jobs that get paid more on average in the federal government than in the private sector.

Overall, federal workers earned an average salary of $67,691 in 2008 for occupations that exist both in government and the private sector, according to Bureau of Labor Statistics data. The average pay for the same mix of jobs in the private sector was $60,046 in 2008, the most recent data available.

These salary figures do not include the value of health, pension and other benefits, which averaged $40,785 per federal employee in 2008 vs. $9,882 per private worker, according to the Bureau of Economic Analysis.

Someone will have to refresh my memory about how this isn’t really as it appears. If memory serves, this subject was broached here some time ago and there were a few gubment workers who disagreed with the numbers for some reason.

During my working career, I always thought of private versus public sector work as being a trade-off between higher pay and better job security with slightly better benefits.

Now it looks as though you get all three.

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Biderman: Bond Inflows “Scary”

Charles Biderman of TrimTabs was on CNBC yesterday to talk about the most recent fund flow data and he characterized the continuing movement of money into bond funds as “scary”, noting that many retail investors don’t realize that bond funds aren’t a one-way bet.

Yes, it’s yet another unintended consequence of ZIRP (Zero Interest Rate Policy) where investors look at money market and CD yields of less than one percent and go searching for yield – after being burnt by stocks in 2008, the logical alternative is bonds.

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You have to give Nobel Prize winning economist Joseph Stiglitz credit for his candor in some remarks he made yesterday at a conference where financial market reform was discussed.

As recounted in this story over at the Huffington Post, he said a few things that should be patently obvious to anyone with a working knowledge of how the Federal Reserve system really works, yet, even to me they somehow seemed shocking.

“If we had seen a governance structure that corresponds to our Federal Reserve system, we would have been yelling and screaming and saying that country does not deserve any assistance, this is a corrupt governing structure,” Stiglitz said during a conference on financial reform in New York. “It’s time for us to reflect on our own structure today, and to say there are parts that can be improved.”

To Stiglitz, the core issue is that regional Fed banks, such as the New York Fed, have clear conflicts of interest — a result of the banks being partly governed by a board of directors that includes officers of the very banks they’re supposed to be overseeing.

What’s even more egregious is to think that, not only does the Federal Reserve supervise the very banks whose CEOs sit on its board, but that, even after their disastrous track record as a consumer watchdog over the last decade or so, that power appears likely to stay with the central bank despite loud protestations from those with no lobbying clout.

Clearly, the system can not be reformed from within – that much should be clear by now.

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All the talk about the severe winter weather grossly distorting the monthly labor report turned out to be just that – talk – as both nonfarm payrolls and the unemployment rate were surprisingly tame during the month of February.

Due largely to a decline in construction jobs, nonfarm payrolls fell by 36,000 in February after declines of 109,000 in December and 26,000 in January. There were total upward revisions of 35,000 for prior months’ data, the December total adjusted up from -150,000 and the January job losses slightly greater than the originally reported -20,000.

(more…)

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