Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
BREWING FINANCIAL CRISIS 2.0 Suggests RECESSION 2022 - 28th Jan 22
Financial Stocks Sector ETF XLF $37.50 Continues To Present Opportunities - 28th Jan 22
Stock Market Rushing Headlong - 28th Jan 22
The right way to play Climate Change Investing (not green energy stocks) - 28th Jan 22
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Quantifiable Problem With Private Sector Salaries

Politics / Social Issues Mar 16, 2011 - 01:28 PM GMT

By: Richard_Daughty


Best Financial Markets Analysis ArticleI was particularly interested in this week's ubiquitous newspaper insert, Parade magazine, as its cover featured the interesting article "What People Earn. Our Annual Salary Survey."

Knowing that the average government worker makes an astounding twice as much in wages and benefits as the average private-sector worker, I was hoping that I could use something in the article to take to my boss, as part of my new Mogambo Income Enhancement Plan (MIEP), and say, "Hey! Look at all the money these people make! I deserve more money to work at this crappy job! And I deserve more because I am probably as good an employee as at least one of these guys! I want a raise! Big fat one!"

Well, the problem was that the article was of no use, as the survey was hopelessly skewed, and out of the 47 people and their salaries, it included no government workers except one; an Air Force captain who makes $103,000. But other than that guy, not one!

Since 1-out-of-6 employees work for a government or school system, I was surprised that the survey had no other clearly-identifiable government worker, education system worker, non-profit worker or other tax-supported private agency employee, which employs half of all employees in the Whole Freaking Country (WFC).

"Hmmm!" I said to myself. "Obviously, the Parade magazine is a lying, leftist, dirtbag rag, and purposely omitted showing the salaries of government workers and other union goons due to the current debate over that very subject, but made more significant when we private-sector workers have Warren Buffet and Bill Gates, multi-billionaires who rake in billions more, skewing the 'average income' of private sector workers."

One bizarre result is that, once you get down to the summary provided in their "By The Numbers" column, which is way, way, down, down next to the bottom of the page, in the smallest print of anything on the Whole Freaking Page (WFP), down to the teensiest, tiniest two lines of the whole thing, that you get to the illuminating statistic "Median Annual Salary," which is only $28,580. Yow!

This seems to account for the median household income being, as I recall, somewhere around $53,000, a statistic which DOES include government workers, which I hastily conclude means that the median household income of private-sector workers, according to this sample population, can only be $53,000 if almost every household has two full-time workers in it! Wow!

This was so interesting that I brought it up when I was casually talking to my boss, trying to find a way to bring up the issue of my paltry salary as a Highly-Valued Employee (HVE) who almost won the Worker of the Week award one time about 5 years ago.

Instead of commenting, she just slowly, silently leaned forward and looked right at me, staring deep into my eyes, transfixing me to the spot.

She said, her face cold and hard, her voice an icy monotone of malice, "Let me tell you a joke. A man walks through the building and asks me, 'How many people do you have working here?' I told him, 'About half.'"

Well, it was an old joke, and I conjured up an appreciative chuckle, and wondered what she was up to with such an odd segue. Never one to pick up on this kind of subtle interpersonal "vibe" crap, I figured that she was just trying to lighten the mood, given the horror of the notion that the average gross salary of a private-sector worker is less than the average price of a new car, PLUS a year's comprehensive insurance.

It was her continued silence and her unearthly stare that finally unnerved me so much that it dawned on me what was going on, whereupon I went back to my cramped little office to do a little work, just to make her happy and to show what a terrific employee I am, always working, working, working.

Of course, she will get over it in time, just as, over time, things and people would adjust if price inflation was zero, as it would be under a gold-standard, which was the beauty of having a gold-standard money.

On the other hand, I can see where a family consisting of, say, a man, his wife and a couple of kids could live in their cars, or under a bridge, and still manage to live on less than $28,580.

Of course, the man would not be there much of the time, except to eat and sleep, so that he would not have to get into that same old argument with his family about why we have to live in the cars when we make enough to live in a house or an apartment like normal people, and I have to explain for what seems like the thousandth time In A Freaking Row (IAFR) that we have to economize so we can buy as much gold and silver as is humanly possible because of the inflation, and higher inflation, and more inflation and The Freaking Hyperinflation From Hell (TFHFH) that will necessarily result from the Federal Reserve creating so unbelievably much excess money, day after day, week after week, month after month, year after year, so that, mostly, the Obama administration can deficit-spend it, and then the morons that come after the Obama morons can deficit-spend it.

And then that always leads to the little nuclear family turning on their leader, like a pack of snarling wolves, and asking why the cost of my playing golf is not part of the "new economizing," which leads to that whole thing about "priorities," one of which is keeping the breadwinner healthy and happy so that he can continue to work and provide for his loving family.

And since playing golf makes me both healthy and happy, it is a two-fer, as far as I am concerned, so shut the hell up.

The other interesting thing about the article is that of the 47 people surveyed, only 9 made less than $28,580, and the other 38 made more. So you are wondering how it is that the median salary is $28,580 if 80% of the people surveyed made more than that? I don't know. I don't care. I don't know why I even brought it up.

All I have to know is that the Infallible Mogambo Investment Theory (IMIT) says to be all in gold and silver when excess money is being created to such an astounding degree, and it says it with such elegant simplicity, with the weight of the evidence of 4,500 years of history behind it, and so what could be simpler?

Whee! This investing stuff is easy!

Richard Daughty (Mogambo Guru) is general partner and COO for Smith Consultant Group, serving the financial and medical communities, and the writer/publisher of the Mogambo Guru economic newsletter, an avocational exercise to better heap disrespect on those who desperately deserve it. The Mogambo Guru is quoted frequently in Barron’s, The Daily Reckoning, and other fine publications.

Copyright © 2011 Daily Reckoning

© 2011 Copyright The Daily Reckoning - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in