The US federal government directly employs about two million workers, not including military personnel or the postal service. I think government workers get a bad rap. The phrase “good enough for government work” hints at an attitude that the government employees do not do a very good job. We continuously make fun of municipal maintenance workers “One guy in the hole and four leaning on a shovel”, and other things. I’m from Chicago, and we constantly hear about “patronage” jobs and “ghost payrollers”. I’m not suggesting that there are not abuses in the system, just that we can’t infer anything about government employees from the few examples that make it into the press.

I think that one thing that many people begrudge government employees are their benefits. In an age when few if any workers in the private sector have defined benefit pensions (no employee contributions), our federal government workers, for the most part, have this benefit, and are allowed to “double-dip” meaning that they can collect multiple pensions from different government services. In the private sector, no one would complain about this, because we the tax payers are not paying for it. The healthcare benefits afforded to government employees are much better than most of us have.

In my experience, most government workers are diligent, competent, dedicated, hard-working individuals who see their job as making a difference. My question is not about the value or quality of individual workers, but is the government employment policy.

I think if you took a survey of people who are not government workers that would question:

 

  • Job Security – is it possible or practical for the government to fire workers for non-performance?
  • Benefits – does the government provide benefits beyond what is typical in the private sector?
  • Political Hiring – how many employees are hired because of political connections in addition to or in spite of job qualifications?
  • Workplace efficiency – since there is no profit motive, what mission or objective does the government use to measure its efficiency?
  • Accountability – since this is all paid for by tax dollars, and the only accountability we have is through elected officials, how can we the people, assess whether the elected officials have instantiated the correct leadership and operating processes?

We all have these questions. I expect that there is a tremendous amount of diversity in the answers to these questions across the various government agencies and operational units.

The US government is so big, and has so many parts, and is engaged in so many activities, that we, for the most part, are not able or willing to spend the time and mental energy to figure it out. How in hell, can our government employ so darned many people – what can they possibly be doing and why?

I frame the question as follows:

 

How many of the activities that the government is in are activities that can only be done by the government?

Of the activities that could be done in the private sector, does government involvement add any value? Does it add cost? Why are we paying the cost?

Without getting into the economics of monetary theory and defecit spending. The two questions that I continuously ask are does the government have a clear mission for each of the activities that it is engaged in, and where is the accountability for that mission?

My miniscule example is as follows: A few years back, I moved into an unincorporated area. Since I didn’t have a local municipality to arrange waste removal service, I had to contract with a service individually. I was concerned that I would have to pay much more than I did when my former municipality contracted for the same service, and billed me directly. In fact, the price was within a couple dollars either way. Perhaps competition was at work – there are at least three waste removers that service my area, and their price and level of service varies by about 20%. Obviously, the former municipality had to perform a billing service, and had to pay the service provider, so some staff was necessary to arrange this. What the government did was negotiate for me, but give the service provider a monopoly. Before I moved, I had never really thought about why the local municipality contracted for waste removal service. There is no bespoke infrastructure – water or sewer pipes. Why waste and not phones or cable or gas or electric utilities? What is the difference?

There is nothing that indicates that only government can provide waste removal service, so why do they? Interestingly enough, they do not provide the same service for commercial enterprise – they must contract independently.

One thought on “Government as Employer

  1. Rich,

    I had a hard time following what your exact point is, other than to mention a concern about perhaps about identifying what is and is not necessary as a core Govt service and some tidbits about the Government needing more transparency and the benefits program being good. It seemed a little scatter shot, but I’ll address these three items in my response; I’ll work it in reverse order.

    I am a Federal Employee; a relatively new one at that (started March 2008 in the Federal Service). The process of joining the Government is not exactly an easy one; i suppose it could be slightly easier if you had someone lobbying for you on the inside, but the process would remain the same. You would apply via USAJobs.com where HR would screen you and then pass your resume (providing you got through the first level of HR screening0 to the hiring manager who would interview. HR will not allow you to have a singular candidate; they ideally want you to have 3 or more candidates you need to interview. This is to prevent nepotism. the benefits are good, but I wouldn’t call them the best. I have had better under some of the outside companies I work for and we actually use my wife’s health insurance as it is better. I wills ay that overall the program is good and there are lots of choices. It’s a reason I have swung my opinion more towards a national healthcare program of some sort that focuses on preventative medicine; don’t reduce anyone’s benefits, but increase those that do not have it. As far as double-dippng on retirement, the only way I am aware of that happening is military personnel that retire and then join the Government. They are eligible to receive retirement from both. Military service is quite different from civilian service, so I am not sure you would want to change that and the number of military personnel that actually enter the Government is quite small.

    I agree the Govt needs to become more transparent in how we spend money and the value we provide for that money. This should be easily and readily available AND most importantly across all branches of the Government; most people target the larger Executive Branch, but the Legislative Branch (who decides ultimately decides how money is spent), and the Judicial Branch should also be exposed. I do think we are doing better on making the value more transparent, but still have a ways to go… There are several organizations that also help in this regard, such as the Sunlight Foundation.

    As far as what is inherently Government or not… The example you pulled is at a municipal level and so may not easily scale to the stuff we do at the Federal level. What we could do is have a Business canvas for each Agency’s mission (and perhaps significant subordinate organizations); this would increase understanding and transparency to the public. There may be Govt functions that could be shed, but we should be cautious. For example, i have heard the argument about the postal service, but then you would see costs soar for shipping to rural areas. as the Govt acts as a competitor to companies like UPS who could and probably then charge more. A huge amount of value the Government has iis in forms of insurance policies for the country (e.g. the military is an insurance policy for being able to protect us from attack). Insurance is never valuable until an event that occurs such that you need it. Another area where the Govt provides value is basic research. Companies mostly focus on application of research, not very fundamental basic research. Again, i think organizational business canvases would help the public understand these better.

    I’ll close with one other point, all levels of Govt are held to a standard that is often times not realistic and that is to not have a failure or make a mistake. Govt is for the people by people. People make mistakes or fail; of course failure should never be taken likely and I am not condoning criminal or negligence-oriented failures, but just pointing out that there will be times when something doesn’t turn out as everyone would like it. Hold the scrutiny on us, but understand that people will make errors in judgement or misunderstand risk from time to time.

    Cheers,
    Paul

    Reply

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