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We are seeing a Greek style public sector collapse.

by Kyle Rogers

How the Greek public sector collapse took place.

  • Year after year, wages, benefits, and pensions for public sector employees rose. While private sector wages did not.
  • Often times politicians would increase public sector wages, benefits, or pensions as a means of getting votes.
  • New public sector jobs were created simply to combat unemployment and lock in more voters for politicians who support higher public sector compensation.

Eventually Greece developed a bloated Soviet style bureaucracy which is being compensated in great disproportion to the private sector employees. Keep in mind that the private sector is paying taxes to pay for the compensation received by the public sector.

When the economic downturn began, tax revenue from the private sector dropped and Federal, regional, and municipal governments could no longer afford their employees. When faced with cuts in benefits and pension packages, tens of thousands of public employees and communist agitators rioted in the streets.

The crises in Greece is now being held over by bailout money coming primarily from Germany. The Germany economy is in much better shape than much of the rest of Europe because they maintained their industries rather than exporting them to places like China. However, Germany is now propping up several smaller European nations and the German people are tiring of it fast. Since none of the actual problems are being fixed, much worse unrest could be in Greece’s near future.

Now let’s look at the United States.

  • Public sector wages, benefits, and pensions continue to rise even as private wages stall or decrease.
  • Often politicians create new public sector jobs simply to fight unemployment and buy votes. George Bush even publicly stated this as a major reason for the creation of the Department of Homeland Security.
  • Increasing public sector compensation to buy votes is standard political practice in the US.
  • Many lucrative high paying government jobs are held by racial minorities in great disproportion to their numbers due to “affirmative action” programs. Whites are discriminated against across the board.

Now we are deep into an economic downturn. Every state, county, and municipality is going broke. Taxes have already been raised across the board, but it is still not enough to continue paying for all the public employees.

Governments at every level have delayed the inevitable by borrowing money like crazy. So much so, that some counties and municipalities risk defaulting on bonds.

Right now in Wisconsin we see a state on the brink of Greek style riots. Public sector employees are faced with the prospect of having their lucrative benefits and pensions packages rolled back. Public sector employees are marching in streets and are being egged on by communist agitators. In fact, as we saw on, agitators are passing out literature from Communist and Socialist groups on the streets and urging an “Egyptian Style” revolt. Over 300 people have died in the Egyptian riots so far.