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SUMMARY
Joe Brown examines the recent decline in direct federal employment, revealing that the apparent reduction in government size is misleading. He demonstrates that when including contractors, grant-funded workers, and state and local employees, government influence over the workforce has actually grown significantly.
MAIN POINTS
- Federal government direct employment has dropped to its lowest level since 1966, now at 2.67 million.
- Outsourcing to contractors and grant-funded workers has offset the decline in direct federal employment, raising the total to over 10 million.
- Including state and local government employees, the total number of government-funded workers rises to over 31 million.
- Adding state and local contract employees brings the grand total to 43.85 million, or 26.7% of all employed people.
- A drop of 500,000 federal jobs is insignificant compared to the overall government-funded workforce, which continues to expand.
- Individuals are urged to protect their financial well-being as government spending and influence grow.
DETAILED ANALYSIS
Recent data shows that direct federal government employment has fallen to 2.67 million, the lowest since 1966. While this might suggest a shrinking government, a broader analysis reveals a different reality. The official count includes civil service and postal workers, and when active duty military are added, the total rises to 3.86 million.
However, these figures represent only a fraction of the government's true workforce. Over the past several decades, the federal government has increasingly relied on outsourcing through contractors and grant-funded positions. When these are included, the federal workforce exceeds 10 million.
Companies such as Flock, which provide surveillance equipment to government agencies, exemplify this trend; they operate as private entities but are financially dependent on government contracts, blurring the line between public and private sectors.
The scope expands further when state and local government employees are considered. State governments employ an additional 5.5 million people, and local governments add another 15 million, bringing the total to over 31 million. Including state and local contractors pushes the number to a staggering 43.85 million, accounting for 26.7% of all employed Americans and 12.8% of the total population.
This means that more than a quarter of the workforce is funded by taxpayers, with a significant portion of these jobs existing solely due to government spending rather than market demand. The analysis highlights that the apparent reduction in federal employment is offset by a substantial increase in government-funded positions through indirect means. Ultimately, the burden on productive workers remains high, as they support not only non-working dependents but also a large segment of the workforce whose income is derived from government sources.
The conclusion emphasizes the importance of individual financial resilience in the face of persistent government expansion and the associated economic pressures.
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