Why Start Up if Uncle Sam Pays over $150,000 a Year?

The number of federal workers making over $150,000 a year has skyrocketed in recent years according to the USA Today. Is this just catch-up or another signal that the government is expanding and crowding out entrepreneurs and those who use capital to produce societal wealth?

Federal salaries have grown robustly in recent years, according to a USA TODAY analysis of Office of Personnel Management data. Key findings:

•Government-wide raises. Top-paid staff have increased in every department and agency. The Defense Department had nine civilians earning $170,000 or more in 2005, 214 when Obama took office and 994 in June.

•Long-time workers thrive. The biggest pay hikes have gone to employees who have been with the government for 15 to 24 years. Since 2005, average salaries for this group climbed 25% compared with a 9% inflation rate.

•Physicians rewarded. Medical doctors at veterans hospitals, prisons and elsewhere earn an average of $179,500, up from $111,000 in 2005.

Federal workers earning $150,000 or more make up 3.9% of the workforce, up from 0.4% in 2005.

via More federal workers’ pay tops $150,000 – USATODAY.com.

One thought on “Why Start Up if Uncle Sam Pays over $150,000 a Year?

  1. Pingback: College Students Souring on Business Degrees | Campus Entrepreneurship

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