More Desperation from the Yes on Two Camp 10/18/11
After the backfire of the ad “Building a Better Ohio” put out pretending the great-grandmother (who was urging a NO vote on Issue Two) was in fact endorsing Issue Two. Poor “Building a Better Ohio.” It’s so embarrassing to have your lies exposed isn’t it? After that backfire, they are now trying to justify there ridiculous claim that public workers make 40% more than private workers other than the stupid British “study” I talked about earlier. Of course since the facts are that public workers make less than private workers by 3.5%, they have there work cut out for them. They now cite a study funded by the Ohio Business Roundtable. It has to do some real contortions to come up with the numbers cited. For example, private businesses must pay 6.2% of payroll for social security while public employees in Ohio don’t participate in social security. But the author Andrew Biggs says since social security has other costs he will count only 2% as the compensation of the employee. Poof, 4.2% of the cost of hiring an employee in private business disappears under the magic hands of Biggs. He then argues that Ohio retirement systems are so efficient that they produce a better retirement than the same money could buy in private business. Indeed he says it amounts to 3.6 times higher return. You would think this would be a good thing. Wow the public is getting more for its money. Nope Biggs says we have to multiply the actual cost to the public of the retirement. Thus he balloons the cost from the actual 15% to 45%. We only pay 15% of the salary but Biggs counts it as 45% of the salary. He still hasn’t managed to reach his goal so he adds a factor of employee health care, which in fact is a non-guaranteed part of the retirement system so it has already been counted. Nevertheless he counts it again so it’s now counted twice. Finally he adds in job security. He claims that jobs in the public sector are more secure so we must add that to public salaries. Of course it doesn’t actually cost the public anything and given the layoffs of teachers and public employees we are seeing it seems clearly false. Nevertheless he claims it is worth another 9.3%. With all the slight of hand, double counting, and ballooning Biggs comes up with a 43.4% advantage for public workers over private workers. It’s more of the same—if the facts aren’t on your side, lie because nobody will bother to check what you say.