Swamp Growth Up, Manufacturing Jobs Down

Well it’s self evident.  Did you listen to the Ross Perot debate we posted earlier?   It happened years ago.  Government Jobs would surpass Manufacturing employment numbers and that happened way back in 1989, 29 years ago.  Ross Perot really just spoke about the Federal Government, not including local and State Governments.  CNSNews has an article  that talks about how from 1941 to 2015, the Government has doubled in size as adjusted for population growth.  In 1941 there was 1 in 27.7 people who were employed in government jobs.  In 2015 by contrast, 1 person for every 14.6 people work in government jobs.

Think about those numbers.  In 1941, everybody had a secretary.  People used typewriters and delivery people.  There was no Federal Express, things moved at a much slower pace.  Today, there are less secretaries and we have all sorts of technology that should have replaced humans, the overhead costs of human employment in the government and also the volume of humans in Government.  The ratio should be 1 in 150 people due to efficiency in production thanks to all the technology especially in the past 20 years.

Governments never seem to shrink.   And the overhead keeps increasing.  More and more empires have been built over the years and even on those days where the Government shutdowns occur people still get paid.   Spend, Spend, Spend.  The deficit keeps on increasing, just today the pundits of the current Wallstreet Bubble are sounding the alarms where they compare numbers to the DotCom bubble.

Nearly 23 Million people work for various Governments- local, state and federal and the population counted (Not illegals) as of the article date was 321 million people.   In those statistics there certainly must be many duplication’s of work, duplicate departments that are essentially doing the same thing, many more regulations, laws and steps in order to get things done see John Stossel’s great Lemonade stand show “Everything Illegal”  Government has grown like a Cancerous tumor.   This tumor in inoperable and just keeps growing too.

President Trump does not want to come out and say it, but he knows the bloated oversized government if it were run lean like one of his companies, would be better managed.   That is why he was elected.  To expose the Swamp people, to cut waste.  However, Government employees are like a sacred cow.  Untouchable.  Once a Government Employee, always one.  How many layoff’s have your heard where people working directly in the Government get laid off due to a tax collection slowdown, or economic downturn?  Never.  Not that I recall.

Private Industry always has layoffs, downsizing and workforce shrinkage’s.   It usually depends on economic cycles.  Government has no such thing.  It just keeps expanding and expanding.

The Federal Government according to Federal Pay has 1.35 Million employees with an average pay rate of $84,000.  They work in 375 Departments as of 2016.   Total Salaries are 113 Billion per year.   If you look at the earliest statistics in 2004 there were 1.2 Million Federal Employees, 355 Departments (25 less) and overall salaries were $73.89 Billion average salary $61,000.

So, while the Average American’s Salaries have remained stagnant or decreased in hours, with less benefits and people working in multiple service jobs- the US Government worker average salary has increased by 37%!   Here we are in 0 to 4% interest rate environment.  This has severely punished anyone who has saved their money as they cannot earn sufficient interest on it in the USA.  One reason to go offshore for event the average person.  The average inflation rate from 2004 to 2016 was roughly 2.02% per year or a total of 27%. Government workers have been rewarded for doing such a great job managing the Swamp in Washington, DC and other matters have given themselves a 10% increase over inflation.

Manufacturing in the United States is dead as we know it.  The Chinese build everything, and Americans gladly buy it.  In 1941, per wartime, the manufacturing workforce was 12.5 Million with a population of 131 Million and today there are only 12.3 million people actually manufacturing and building things with a population of 321 Million.   These numbers are staggering since the USA should be producing products and exporting them instead of importing the majority.  The trade deficits with the EU alone are staggering.  Unlike China, who we have become dependent on, We don’t NEED anything from Europe. 

We like European goods, mostly luxury goods and the nearly 2 trillion dollar trade imbalance for 17 years is ridiculous.  We also are allies and trading partners with Europe but hopefully that will change so that the European’s purchase goods manufactured in the USA.  If not, set tariffs.

With China, our Politicians are simply selling us out.

All these numbers mean is that no matter what bullshit the politicians are trying to sell, the number do not lie.  The USA has been in a decline of good, high paying skills in manufacturing under all administrations since Ronald Reagan. When the wall came down in Berlin, 1989 that marked the point in time where Government Jobs increased and Manufacturing jobs decreased.

Today, there are lot’s of Walmart Employees, Amazon Employees and small service businesses.   It’s always great to see Americans want to invent things and present them on Shark Tank, but I cringe everytime the Shark’s suggest “That’s too expensive, we need to make it in China”.  That is short sighted, and being that all they care about is making money like Ross Perot said.

Government statistics do not count those who quit working years ago unable to find employment, so the numbers are much worse than published.