Balancing the budget – Labor!

10d) balancing the budget – Labor

Labor is the single largest factor in administering the Federal Government. There are almost 24 million government employees. I have not been able to find any actual dollar stats, but if we use an average salary of $30K (probably low) plus 15% in taxes & benefits then this would total $828 Billion.  According to several studies the largest labor productivity variable resides within the administrative function. Studies have shown that there can be a 2.5 multiple productivity difference between administrative employees doing identical jobs (from the worst to the best employee). I estimate that a 3rd party management consulting firm could easily improve administrative productivity by 25%, if not more that would represent a savings of over $200 Billion annually.

While on the topic of federally funded employment or subsidies let’s consider the following statistics from the us debt clock as of April 2015:

Available – workforce    178,000,000
Employed    149,000,000
GOV’T WORKERS        24,000,000
full time – private sec        97,000,000
part time – private sector        28,000,000 Tot private 125,000,000
collecting unemployment          9,000,000
unemployed not collecting          9,000,000
disability        11,000,000
Retired collecting SS        48,000,000 Tot gov’t 92,000,000
Totals work force + retired    226,000,000  

41% of the total work force plus retired are being paid by the government.  Only 53% of households are paying any income tax.