More Takers Than Makers

Stephen Moore has a sobering op-ed at the Wall Street Journal. It explains a lot about why so many states are in fiscal crisis and why big government is such a burden to the American taxpayer. Here's part of Moore's piece:

If you want to understand better why so many states—from New York to Wisconsin to California—are teetering on the brink of bankruptcy, consider this depressing statistic: Today in America there are nearly twice as many people working for the government (22.5 million) than in all of manufacturing (11.5 million). This is an almost exact reversal of the situation in 1960, when there were 15 million workers in manufacturing and 8.7 million collecting a paycheck from the government.

It gets worse. More Americans work for the government than work in construction, farming, fishing, forestry, manufacturing, mining and utilities combined. We have moved decisively from a nation of makers to a nation of takers. Nearly half of the $2.2 trillion cost of state and local governments is the $1 trillion-a-year tab for pay and benefits of state and local employees. Is it any wonder that so many states and cities cannot pay their bills?

Every state in America today except for two — Indiana and Wisconsin — has more government workers on the payroll than people manufacturing industrial goods. Consider California, which has the highest budget deficit in the history of the states. The not-so Golden State now has an incredible 2.4 million government employees — twice as many as people at work in manufacturing. New Jersey has just under two-and-a-half as many government employees as manufacturers. Florida's ratio is more than 3 to 1. So is New York's.

To be sure, many government workers provide a valuable service to their communities. Teachers, police, firefighters, emergency responders, those who maintain vital services, are all important, but too many government workers, particularly at the state and federal level, receive pay and benefits for performing jobs that are utterly non-essential.

Those who actually create something, who make wealth, are carrying on their backs as many as three government workers apiece who create nothing but whose livelihood often depends upon being able to extract wealth from those upon whose backs they ride. The government has become, in effect, an employment sink for millions of people who might otherwise be unemployed, and we simply can no longer afford it.

The rest of Moore's article is very good. It's an eye-opener.