Would the economy collapse if we fired all the government workers?
Posted by admin in Finance Monday, 7 November 2011 05:21 17 Comments
The average federal government employee makes almost twice the salary of an average private employee, counting fringe benefits..
This means if federal employees are cut, then half the economy will be cut.
Yes… pretty stupid question.
There would be NO middle class left
Wrong. Really bad math.
If you cut any major employer by 100% you would collapse the economy
Wal Mart would rock the economy pretty badly if they went under
What you do is cut the federal workers back slowly so that we dont have millions out of the private sector
NO but If they shut down the economy and the government means the private sector would hurt If the government shuts down the private sector takes over and they will have a grab on the economy.
All, yes.
Half, no.
Wrong! Government employees do not produce anything.
Because the producing base supports the gov employee 100% with tax dollars everyone would have more money to spend. Except the fired employees of course.
You, if your in the private base, would get a raise of exactly 40% (gov pay roll) of what your “Fed tax” is. This raise would offset exactly what the Gov worker would be paid and spend in the economy. The economy would roll along just fine.
Go buy a car, pay cash! Whoopee!! I just got a $7000 dollar raise and owe no taxes.
What do you base that salary figure on ?
No link.
If your employer managed to cut your salary and benefits over and over till you were bled dry, then where are all the new jobs that they created ?
60% of the deficit,,,Bush Tax cuts.
Yes. The government is the single largest employer in this country. With that many people out of work and no possibility of replacement jobs…the economy would fall faster than a lead balloon…
If of course we lived in a fantasy world with a consumer-driven economy, which we don’t.
Well, Bush robbed thecountry of 7 trillion dollars so I think if the gov. closed down it would be the end of the country. People would be losing houses, stress would destroy families. Robberies would increase. Violence would increase. No taxes coming in from the tax payers. No retail businesseswould be able to stay open.
…Alright, so first off, that statistic is B.S. The disparity isn’t that big.
However, that hardly matters, because the statistic is based off of bad data. You’re basically trying to compare every single federal government employee to every single private employee. Here’s the problem: you have all skill levels working in companies. Federal government employees, on the other hand, are frequently of much higher skill and education levels. If you compare based on similar jobs by actually taking this into account, you find that private employees actually make more, including benefits.
The general question is really confusing. I don’t get hwat you’re trying to ask or why. If all federal employees were fired, the government would shut down. That would cause economic collapse.
If we fired all, yes, especial the treasury. Who will ever print our money.
It depends on what we want in our society. A high percent of government employees move out country closer to socialism. We take away mobility and drive of the people. the problem I see now is that the jobs are now mainly in the hands of government and oligopolies. Large corporation ends up being just like the government.
Hmmm,lay off experienced workers,hire inexperienced workers to do the work.Salaries saved would be lost in training and mistakes.Would also slow any work that needed to be done such as building permits,safety inspections,FDA,CDC,NSA,TSA,FBI….you get the picture.Isn’t only the pencil pushers that are costing tax money,it’s every thing that needs to be done to keep all this going.
Would the economy collapse if we fired all the government workers?
Your assumption that the loss of the federal employees salaries would be removed from the economy is incorrect. That money would actually flow through the economy more efficiently. Would there be a reduction of economic activity, of course, but not a collapse.
Contrary to popular belief no, it would not collapse. A majority of the necessary services that are provided would be immediately supplied by entrepreneurs (think privatization) and the states and many of the fired workers would be hired quickly. The wasteful spending and nonessential services would be removed (something our elected officials are not capable of doing) States would once again issue their own currencies.
Times would be tough for a time but would rebound quite quickly ( a decade or two) since the burdensome debt will have been removed.
You will see isolationism become a main theme since many world economies that depend on this country’s continuous borrowing and trade deficits would struggle.
You will probably see an immediate conference of the state governors to resolve any defense issues and some countries somewhere will most likely get some military hardware on the cheap.
NO,THE BIG CORPORATIONS TAKE OVER,USA ECONOMY IS BASED IN THE POWER OF DOLLARS,WEAPONS AND ECONOMIC CORPORATIONS.
THE FEDERAL WORKERS ARE LIKE SOLDIERS,THEY CAN BE DESTROY,BUT IF THEY SURVIVE,WE CAN GET THEM A LITTLE MONEY TO SURVIVE.
THE MAIN ECONOMIC SEED IS ALIVE.
JUST IMAGINE NOBODY IN THE WORLD USE THE USA DOLLARS ,TO GET PRODUCTS?
THAT CRASH THE USA ECONOMY.
“The average federal government employee makes almost twice the salary of an average private employee, counting fringe benefits.. ”
Maybe that is the problem. Overpaid and under working.