Skip to comments.Americans Overestimate Federal Benefit Costs
Posted on 04/11/2011 5:57:48 AM PDT by Poundstone
As the possibility of a federal government shutdown loomed over thousands of Americans, the article in CNN, April 2, 2011: Americans Flunk Budget IQ Test, was quite intriguing.
According to a CNN/Opinion Research Corporation survey, most Americans think that the government spends a lot more money than it actually does on Government pensions and benefits.
On average, Americans think the federal government spent 10 percent of its 2010 budget on pensions and retiree benefits; the OMB figures indicate the real number is about 3.5 percent. Another area that is not often talked about is the big difference for federal workers and state workers is that federal employees pay significant premiums for their health insurance.
(Excerpt) Read more at fedsmith.com ...
Oh. You again.
An excellent article (long overdue!) that educates people on how federal employee compensation occupies a tiny portion of the federal budget. Really puts things into perspective.
If we have to cut benefits to those who have paid into Social Security their whole lives, we have to cut all other Government pensions.
They all contribute to the deficit.
Oh I don’t support cutting SS for current retirees, although I could accept changing the forumula (increasing retirement age, raising the SS tax salary cap, etc.) for people who are still working. Similarly, I don’t support changing pensions (including COLAs) for current federal employees, although I recognize the pension formula could change for current federal employees.
er, make that I don’t support changing pensions for current Federal retirees!
Well, I am employed in the private sector now, and have been since I retired from federal service last year.
Most Federal workers accomplish 0 (or negative) so the ratio between cost and benefit is infinite. Fire 95% of them. That’s a start.
“If we have to cut benefits to those who have paid into Social Security their whole lives,”
the USG should cut Congressional, Presidential, and Cabinet secretary, and other senior executive branch pensions most severely. It was their incompetence and venality that got the US in the mess that it’s in.
Of course, this estimate ignores their unfunded pension liabilities and benefits, which are estimated to be well in excess of $1 trillion. The impact of these numbers due to annual ratcheting could well raise the total to the 10 percent given by members of the ignorant public.
3.5 % of what ? Just discretionary ? Or does the denominator include SS & Med spending ?
It appears they are including SS and MC in the calculation. This is fraudulent accounting. The costIS 10% of discretionary spending!