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Lately, I”ve heard rumblings from politicians about freezing pay and hiring and reducing benefits for federal workers as the solution to ineffective government. I worked for the Navy during the 1980s as a research psychologist when President Reagan implemented the same policy. I believe it was a mistake.

When Reagan froze pay and hiring in the ”80s, the result was not what was expected. Since the private sector paid significantly better than the government, the ”80s saw a massive exodus of the brightest, most hard working, best skills and most marketable public servants going to the private sector.

Although many of those who remained were truly dedicated to their work and/or were not concerned about making more money, many who stayed did so because 1) they already had 10 to 15 years in and didn”t want to lose their retirement, 2) were not marketable in the private sector, 3) were risk aversive and 4) unfortunately, some were just lazy and new working in the private sector would be harder.

Being a federal employee, I had the opportunity to here those exact reasons stated.

The decade after Reagan began that policy, many of the people who left tended to be younger and were highly educated (scientists, computer specialists, doctors, lawyers, accountants, and those with abundant management and program experience.) Many went directly to the open doors of the military-industrial complex where their skills and connections were greatly appreciated.

Those advocating such a policy tend to believe in the free market and that the private sector is far more effective and efficient that the public one.

Now, have you ever heard a smart CEO say, “let”s offer pay and benefits far lower than the competition so we can attract competent, hard working people.” Of course, not. In the private sector it is well known that you need offer pay and benefits above the average to get the best folks.

Why is seen as a sin to pay competent public servants good wages?

I know of several bright, young, dedicated attorneys who have recently left the public sector because they just couldn”t afford to support a family on those wages.

There are other ways to improve the effectiveness of government including changing many of the personnel rules that make firing difficult, paying according to performance, eliminating unnecessary bureaucratic rules and paperwork, and automating boring, non-value-added repetitive work.

More later!

Carol Schepper

Lucerne

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