Christine Quinn: “recently the Joint Economic Committee released a major study on the impact of excessive Government spending on total…”

“recently the Joint Economic Committee released a major study on the impact of excessive Government spending on total worker pay and benefits. This study, the impact of the welfare state on workers, shows how excessive Federal spending has depressed the growth of productivity, wages, and benefits over the last two decades. According to this JEC study, when Federal spending as a share of GDP exceeds 17.4 percent, additional Federal spending becomes literally counterproductive. These negative results are reflected in lower productivity and compensation growth. As a result of excessive Federal spending over the last two decades, the typical worker has lost a sum total of $106,800, enough money to purchase a median price new home in 1993. At current levels, each additional $1 of Federal spending lowers the sum total of workers compensation by 26 cents. In other words, an extra $100 billion of Federal spending would lower total compensation available to American workers by $26 billion. This study also debunks the myth advanced by Labor Secretary Robert Reich that seeks to blame the income stagnation under the Clinton administration on a recovery in business profits.”