Quotulatiousness

May 6, 2020

Essential private sector workers and non-essential government workers

Filed under: Business, Economics, Government — Tags: , , — Nicholas @ 03:00

A couple of articles at the Foundation for Economic Education look at the arbitrary division of peoples’ jobs into two broad categories:

In a recent TV appearance with Dana Perino on The Daily Briefing, [Mike] Rowe made it clear he’s not a fan of the terms “essential” and “non-essential” worker. The problem with such a view, Rowe said, is that such terms have little actual meaning and the economy makes no such distinction.

“There’s something tricky with the language going on here, because with regard to an economy, I don’t think there is any such thing as a nonessential worker,” Rowe said. “This is basically a quilt … and if you start pulling on jobs and tugging on careers over here and over there, the whole thing will bunch up in a weird way.”

Rowe’s message is precisely what FEE president and economist Zilvinas Silenas was getting at in a recent article published at Townhall.

    Allowing politicians to decide which businesses and products are “essential” is an invitation for disaster. If we continue to deny these businesses the ability to do the one essential thing they are best at — providing goods and services to millions of everyday Americans — we risk more than unemployment or recession of stock price plunge. We deprive ourselves of the best resource — our people — during the time of need.

The truth is, all workers are essential.

Unfortunately, all too often what is deemed “essential” is simply what’s convenient to state leaders making the decisions. Few would suggest that liquor store owners are inherently more essential than pizza parlor owners — except perhaps state revenue collectors. No doubt this is the same reason Michigan Gov. Gretchen Whitmer concluded that lottery tickets are essential, but gardening seeds are not.

Liquor stores and lottery tickets aren’t especially “essential” to Americans, just state budgets. But as one Washington State sheriff noted in April, this seems to be the criteria state leaders often use to determine what is “essential” and “non-essential”: whether it helps the government’s bottom line.

When the state picks winners and losers it’s not only unfair, however. It’s also destructive.

In the other piece, J. Kyle deVries points out that government cannot be immunized from the economic harm the shutdown has and continues to inflict on the private sector:

So far millions in the private sector have lost their jobs or have been furloughed — but not many in government have. Many government employees continue to get salaries and benefits despite not working. Their agencies most certainly will not have as much work to do since major portions of the economy are closing down. Many agencies won’t even be needed any longer, but you better believe they will continue to be funded and probably expanded over time. That is outrageous. As we suffer economically, government should not be exempted.

This phenomenon is truly confounding and unfair. After all, government does not exist without taxes and taxes can only come from people who produce and earn a living — in other words, the private sector. The private sector supports government employees who, on average, receive higher pay, better perquisites and much better retirement plans. That should change. As we restructure our economy in the wake of the coronavirus, government should be restructured as well.

Businesses have no guarantee they will remain in business — they must provide their customers with a quality product or service at a competitive price or they will go bust. But government agencies remain in place for life, even if they continue to provide lousy services at outrageous expense. Government needs to show us they are with us during this fight. Part of doing so is to take a hard look at various agencies and departments to see if they can be improved or if they need to be eliminated. Before you say that would be difficult, let’s look at some obvious choices.

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