When it comes to the health of the economy, the value of most government jobs pales in comparison to the value of private sector jobs.
From the standpoint of the employee, statistics show that government jobs pay better and provide more benefits than do comparable jobs in the private sector. But as for contributing to the economy and to the overall job market, government jobs are a net burden to the economy and to total national employment.
Let me explain (in 2 parts with a final, crucial qualification):
PART ONE
Private sector workers produce products or services that generate the very financial resources needed to pay their own wages.
All private sector jobs must produce something of value, a product that people value so highly they are willing to part with their hard-earned cash to obtain. Private companies can afford to employ only those persons for which the end product of their labor is at least as valuable as their wages. Hence, all private sector jobs are productive--they produce a product that people value at least as much as the cost of the labor and materials required to produce that product. Consequently, all private sector jobs are self-sustaining: they pay for themselves with the value produced by their labor. Carpenters make furniture or other items that consumers value. The sale proceeds of their products finance their continued employment. Everyone wins. Consumers get something that they value and carpenters continue to ply their trade and receive wages. Nobody is giving anything to anyone without receiving equal value in return. Moverover, from the value created by private workers they accrue income which they spend to support the wages of other workers. This is how the economy grows, by workers creating things of value.
PART TWO
Most public sector workers don't produce any product or service that adds economic value, i.e., that consumers would be willing to repay full cost to acquire. Thus, the wages of those workers are unsustainable and must be continually subsidized by the wages of private sector workers.
With some very important exceptions described below, government workers don't produce products or services that citizens would be willing to purchase at or above cost. Hence, unlike in the private sector, the labor of many government workers creates little of economic value to support their wages. Nor do their actions add any new value to the economy (with the exceptions cited below). Therefore the wages of most government workers must be continually subsidized by the value created by private sector workers. If government workers were employed in the private sector they too would be creating something of value, thus, adding to the economy and supporting their own wages.
QUALIFICATIONS
Some government activities are highly desirable and of great benefit to all.
As understood by our nation's founders, there are some functions of government that are of great value to all citizens and states. As enumerated in the Constitution these include, and are essentially limited to: national defence, national laws and their enforcement, printing money, collecting taxes, regulating international and interstate commerce, weights & measures standards, postal services, patents & copyrights, and maintaining vital records. All other responsibilities are left to the states.
With respect to the states, there are also some government activities that can contribute real value to the economy. These include law enforcement, fire protection, basic education, and infrastructure components like roads and clean water that facilitate private commerce and healthy living. The wages of the government workers that do such jobs are subsidized by private workers, however, for these subsidy payments private citizens receive benefits of real economic value.
If we desire to maximize the opportunities for sustainable employment for all citizens, those jobs that are delegated to government ought to be limited to those that contribute value to the economy and so are economically sustainable rather than government activities that create no value and so must be subsidized by the productive, private sector workforce without receiving compensating economic value in return.
A final note--Nearly all economists, both left and right, support some level of government assistance for the truely needy citizens in our society.
Have a nice day.
DWD
