Local businesses react to economic conditions. Why is government immune?

Anyone remember the brouhaha over the Chamber of Commerce's report that showed the average Nevada public-sector employee made approximately 28 percent more than a comparative worker in the private sector?

In response, several unions ran an ad attacking the salaries made by Chamber employees. The Nevada Taxpayer Guide had a good analysis on the distortions in the union's ad.

I wonder if the union will revise its ad after word came out yesterday that the Chamber is cutting its staff by 20 percent.


The organization, which had 58 employees prior to the cuts, cited declines in membership, event participation and sponsorship due to the economy for the need the [sic] trim the staff.
The Chamber, like all businesses, had to prioritize and react to the changing economy.

Why are politicians and government workers seemingly immune to the current economic realities? Instead of balancing the budget using available revenues, there's talk of a billion-dollar tax increase, increasing spending by 17 percent, and accounting shenanigans to make potential tax increases more politically feasible.

While Nevada's politicians are struggling to cut state workers' salaries by 6 percent, private businesses are having to make tough decisions like laying people off.

Looks like the Chamber's study was more accurate than anyone realized at the time.

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