Today, Statistics Finland published some interesting data about earnings.
First you learn that working for the central government is better rewarded than the working for the private sector. You learn as well that there is no huge difference to work for private or local government.
"The average monthly earnings of all full-time wage and salary earners amounted to EUR 2,734 in the last quarter of 2007. The average earnings of wage and salary earners in central government amounted to EUR 2,984, in the private sector to EUR 2,749 and in the local government sector to EUR 2,513."
It's a big surprise for everyone that though that since the public sector is funded by tax payers and because is relatively safe sector (low risk of being fired), you should necessarily have lower salary...alas, it's not true, because of the dinosaurs..."the dinosaurs", what's that? you are saying?..
Let me explain.
In Wikipedia, you will find that dinosaurs mean:
"In English, "dinosaur" is commonly used to describe anything that is impractically large and slow-moving."
Back to Statistics Finland :
"The level of earnings rises until retirement age also among wage and salary earners in the local government sector, whereas in the private sector wage and salary earners' earnings start to decline after reaching the age of 50."
Now, let's go to something quite exceptional that can probably only be found in the public sector: the "Unknown" employee.
So, there are some employee that work for the government, that nobody knows what they are doing and are earning almost as much as an average earner in the private sector...Quite amazing?
4 comments:
Deflation or inflation or revolution?
"French President Sarkozy said the French government would announce a “quite massive” stimulus plan in the next 10 days. Sarkozy said the plan would help revive the car industry… and strengthen the building sector.
In addition, in a joint newspaper column, Sarkozy and German Finance Minister Merkel wrote an EU stimulus package equivalent to 1% of EU GDP would be a “good target”.
Across the Atlantic, the US Federal Reserve announced an US$800b package designed to make it easier for consumers to obtain credit."
Also Citi banks rediculously huge 300B toxic waste which is probably made up of the most horrible and valueless sub slime 'securities' has been gauranteed by the US government so that Citi can remain solvent and act as if those securities were good. And no matter what happens if Citi fails (after it has lent out perhaps many times *more* than the 300B) is that the tax payers take ownership *only* of the toxic subslime nuclear waste in return for the 300B payout of their future earnings. No haircuts. No swedish plan. no punishments.
So what happens now?
Marc Faber sees implosion by march regardless but even so these are truelly massive numbers.
Finland will probably have a massive stimulus plan out soon after christmas, if not before.
"Finland will probably have a massive stimulus plan out soon after christmas, if not before."
Who will pay for it?
The US has been smart, they had their economy to correct much faster and enjoy massive injection of capital by the Chinese and Saudis..they still do.
Now the Big question...would they default? nothing is so sure nowdays...
Europe has even worse problem (the Baltics as highligted a year ago, are in a disastrous shape...it could really be very contagious and affect quite badly the whole region including the Nordic).
The English, the Franch and the german will find the money to fund their stimulus...Finland? I think they should not go to far as to take too much debt...defaulting on its debt will be the worse think that can happen i.e Argentina, Russia etc...
But Katainen is a smart guy..so they will manage through the shaky water to limit the damage...
They will cut tax next year...not for the poor as it has no impact...but for the rich, why is that? so they don't live or move their money away.
The rich or Highly talented people are mobile...they will go wherever there is opportunity (Dubai, US, China?) or at least better one... So they got to keep them, even if risking to have the budget deep in the red...
"Who will pay for it?"
Maybe much of the government debt we see in the west are not really debts at all. But they have to say it is debt for the monetary system to have credibility. But maybe it was just free money? I notice you tend to turn a blind eye to the ongoing inflation.
I also see that US interest mortgage rates are beginning to head downwards with people now fixing at 5.5%. They could yet blow the bubble back up again.
While this was only a US problem it was more of a problem for the US but if all worldwide prices are reset higher as money is devalued at least *that* problem is solved.
Then comes the adjustment to reflect the realisation that there is no free lunch and deficits do matter and Milton Friedman was some kind of banking agent or idiot to advocate banks should be essentially unregulated - which translated into privatise the gains and socialise the losses.
Meanwhile John Maynard Keynes is the new guy on the block - you must have got the memo by now??
"They could yet blow the bubble back up again."
A bubble is a pshychologique phenomenon, nothing rational. One that is solely driven by Euphoria.
I don't think you will see a bubble soon in the U.S. maybe in 20 years...that's how the cycle goes. Just give them enough time to forget and allow a new young generation to commit the same mistakes.
"I notice you tend to turn a blind eye to the ongoing inflation"
In Finland, I wouldn't be too much worried about inflation... Effectively, salary are plummeting? how is that? temporary lay off that make for many people a drop in their yearly salary.
On top of that, lots of benefit that was enjoyed during booom time are disapearing. Among that Bonuses that an important part of remuneration that is as well vanishing, or will shrink pretty sharply.
How about the virtual wealth created by rising house price and stock market...this too has disapeared...
Then i donät see how consumption will or can carry in the same way as the past 10 years...I think it's impossible so it will lead to some sort of economical contration..bringing inflation much lower than people would have though only 6 months ago..how big correction it will be, that's the main issue...
Then indeed you have the Cartels such K- or City-Market that have risen their price in anticipation of the VAT cut...That's the first government mistake...but there will more to come..as now you will have a reactive government instead of a proactive one in what it was a very begnin past environment.
Friedman, Keynes and co are right in some point of time. The problem is that policies doesn't adapt..their keep their model as long as it is working until it breaks apart..then they want to change it radically (from a "laissez-faire" approach to regulation everywhere!)...
Now I agree it's all keynes all around...that at least the approach that has been and will be followed by the current government.
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