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Federal Workers Overpaid

Recorded on January 31, 2012

From The Heritage Foundation, I’m Ernest Istook.


Once again, another study confirms that federal workers are overpaid compared to the private sector.


The Congressional Budget Office reports that federal employees on average are paid 2 percent more than people who work for businesses. But when you factor in the fringe benefits—health care, retirement, paid vacation, and so on, the federal government overpays by about 16 percent on average.


It differs according to levels of education. Those with advanced college degrees are about even with the private sector. But those with less than a college degree get a whopping 72 percent more in pay and benefits than non-government workers. For a bachelor's degree, the feds pay about 46 more.


President Obama wants to raise federal pay this year. But Republicans counter, saying we should freeze pay, plus cut back on the federal workforce.


From The Heritage Foundation, I’m Ernest Istook.