The Occupy Wall Street movement may be fueled by a report released by the Congressional Budget Office that claims the rich are truly getting richer.
But in Michigan, there is no group of protesters rallying around another growing gap in income. Michigan’s government employees have seen a 23 percent increase in pay while the state’s private sector has dropped since 1979, the first year that the new CBO report tracked income in its national analysis (see chart below).
If the gap in pay is what draws the ire of the Occupy Wall Street protesters, they could set their sights on the salary tracks of Michigan’s public and private workers over the last three decades.
The gap between public and private sector was minimal in 1979. Public-sector employees earned $51,078 while private sector employees earned $50,654 in 1979. (All figures are adjusted for inflation.) In 2010, public-sector employees averaged $62,808 a year, a 23 percent increase. Meanwhile, private-sector employees saw their average income drop to $40,455, a 20 percent decrease. Salaries came from the U.S. Bureau of Economic Analysis. The adjustment for inflation came from the U.S. Bureau of Labor Statistics.
“Bemoaning the gaps between rich and poor has been a political parlor game for generations,” wrote James Hohman, assistant director or fiscal policy at the Mackinac Center for Public Policy, in an email. “But Michigan’s more recent story has been one where the private sector — rich and poor alike — have taken major hits while the government class has been protected.”
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See also:
Helpful Facts About Michigan's Public Sector
Tight security locked out dozens of anti-right-to-work protesters from the State Capitol as Governor Snyder was delivering his "State of the State" address. Protesters tried to disrupt the speech by banging and chanting outside the building.
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FROM MICHIGAN HOME HELP PROGRAM PROVIDERS — OFTEN FAMILY MEMBERS
ATTORNEY GENERAL ORDERED THE STATE TO STOP TAKING MONEY ON MAY 25, 2012
opinion May 25, 2012
The Service Employees International Union (SEIU) "organized” Michigan's self-employed Home Help Program providers for the purpose of skimming dues from their ailing and disabled clients' Medicaid subsidy checks. The majority of these providers are relatives or friends taking care of loved ones. It’s been estimated that less than 25 percent of the providers are hired in an employment setting.
The first counter tallies SEIU dues skimmed since the union and state officials first launched this scheme in late 2006. The second shows the amount skimmed since June 9, 2011, when the Michigan House passed and sent to the Senate a bill to ban this and all similar “stealth unionization” efforts. The third counter shows the dues skimmed since the Governor signed the bill into law on April 10, 2012. The fourth counter shows the amount skimmed since May 25, 2012, when the Attorney General opinion was announced.
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