Sunday, June 24, 2007

Lies, Damn Lies and Statistics

There are many times that I wish I had more free time for research. This article from the Arizona Republic goes into a dubious on its face analysis of wage figures in and out of the Federal Government (they did not see it as dubious btw). Basically, the article compares salaries in the private sector (the entire private sector) against wages through the Feds. Surprisingly, with the help of the Heritage Foundation (wink, wink) they found that government employees make vastly more money than private sector workers.

On its face, this is wrong in sooo many ways. First, comparing the entire economy of an area to Federal employees is dubious at best because many lower level government jobs have been outsourced. There are very few janitors (or landscapers or dishwashers or cashiers...) working for the Federal Government. That is obviously not true for the private sector. Second, the article cherry picks areas around the country with highly skilled workers in professions like engineering and compares them to the whole economy.


More than half the workers in Martin County, Ind., for example, are employed at a Navy base that specializes in developing high-tech weaponry. The average $67,478 federal salary there is more than twice the average private-sector pay for that county.


Well I can't imagine why that would be?!?!?! I can't image a bunch of engineers and scientists making 67 k a year, that is unprecedented. So, should we pay them much less than that? Don't we need high-tech weaponry in places like, ahh I don't know, Iraq?

Well I have a counter example, I did an analysis of the salaries of a group of people belonging to the Business Roundtable. Interestingly, my analysis found that the average salary of their membership was 400 times the average salary of American citizen. Using that data to extrapolate out, all employees of private business must make vastly more than people in the private sector ;).

Interestingly, in the area where they claim to do job title to job title comparisons (which is extremely difficult to do BTW), they give hardly any information. Certainly not enough information to see how they calculated the salary information.

Here is my favorite quote:

Overall, high government salaries can be a drag on the economy if they attract rank-and-file workers who may be productive elsewhere, said Sherk of the Heritage Foundation."Wages are the way you allocate labor to what needs to get done," Sherk said. "But when government comes in and offers higher wages, then you mess up those economic signals. You direct workers to those occupations, to where their skills are less needed."


The idea that government does not need good people is ridiculous on its face. I want good and highly paid engineers working for the Army Corp of Engineers. I want qualified Project Managers and planners working for FEMA. Regardless of what these right-wing morons think, we need a government that works. Government is necessary for the long-term stability and well being of our nation. We are now competing in a world economy where government, labor and business communities are working hand in glove to make their countries more competitive. We cannot starve our government institutions and expect that we will continue to thrive with only 1/3 of the equation left.

There are lies, damn lies and statistics... And then there is analysis done by the Heritage Foundation.... How does kind of blatant propaganda make it into the newspaper?

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