“Big Government” Isn’t Just Hyperbole

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February 22, 2009 03:17 PM EST by Brian Sullivan

"Big Government" Isn't Just Hyperbole
We often hear about 'big government' and how it's getting bigger. I wanted to check the data to see if it's hyperbole or reality. Its not hyperbole. According to official government data (ironic) it turns out that government - Federal, state, local and military - has the single highest payroll of any "industry." The table below is from the Bureau of Economic Analysis' official income data for 2008 (as of the 3rd quarter) and lists the major industry groups by total payroll. Across all industries, the total wage disbursements were $6.5 trillion dollars.

Below is the BEA payroll breakdown. The numbers are in millions and annualized, so you can see that government is the only "business" to pay out more than $1 trillion dollars in wages in 2008.
- Farm wage and salary disbursements $20,802
- Forestry, fishing, related activities, and other $19,415
- Mining $66,841
- Utilities $47,483
- Construction $368,519
- Manufacturing $744,233
- Wholesale trade $378,038
- Retail trade $423,009
- Transportation and warehousing $198,907
- Information $220,021
- Finance and insurance $517,190
- Real estate and rental and leasing $97,229
- Professional and technical services $622,908
- Management of companies and enterprises $181,255
- Administrative and waste services $265,270
- Educational services $109,385
- Health care and social assistance $680,833
- Arts, entertainment, and recreation $67,310
- Accommodation and food services $211,175
- Other services, except public administration $201,977
- Government and government enterprises $1,122,604
Two things surprise me in these numbers:
- Government payrolls are more than twice as large as the much-maligned financial industry, and
- Manufacturing is still the second largest industry in terms of payroll.
Not surprisingly, Washington D.C. and Maryland enjoyed some of the biggest income gains last year as evidenced by the BEA's map below:

5 Comments

Jim from Denver

These numbers are fun to look at but they aren't really surprising. Aren't there a couple of wars going on? Not that I'm defending big government, but how much of that government payroll is non-military-related? In addition, we're seeing that manufacturing is still a very big industry and that we have a lot of doctors and lawyers and they are being paid well. I have no problem with that because of the hard work and education they go through. In a way, I agree with you Mark. However, I'd rather see less speculation altogether and see more analysis of the present. For example, can someone tell me why West Texas Oil is quoted on the Chicago Mercantile Market and thus quoted on air while that's not the oil that most of our refineries produce? Why isn't that oil price quoted instead? Wouldn't it have a greater meaning?

February 23, 2009 at 5:54 pm

Dave F

Interesting comments Mark Smith. Makes me curious how accurate they are. What really troubles me is I don't understand your point nor your alternative suggestions? Like most all liberals I know they are experts about complaining what "others" have done but short on problem solving. Maybe I should start a news network because I've been complaining that government is too big and manufacturing is taking it in the butt since I started my first business in 1979. Even though I've been pretty darn accurate, nobody is interested in listening. Fact is . . . you have to spew bs in order to be watched. Tell people what they want to hear. Look at the Turner empire. Mark, tell me what accurate commentaries you've seen disbursed from that camp?

February 23, 2009 at 5:43 pm

JohnC

There is only one way to stop this insanity - Shut down Wall St and get the government completely out of American business and our pockets! Do that and the people will figure out how to take care of what needs done.

February 23, 2009 at 4:47 pm

mark smith

I find it interesting how much detail you find can find to blog about now, a few months ago your blog couldn’t find the recession, the talking head cavuto and his group of experts pronounced “subprime” no big deal ..some people will lose their houses other people will buy them, your Eric b. as oil hits $147, he looked into it and there’s no speculation, its all supply and demand, 4 months later oops 80% speculation. 52,000 and counting of your brothers hiding their money at UBS. How many times has FBN called the bottom in the last year? I’ve lost count. Just a few months ago Alexis g. “liked” this stock market. Here’s the point, who in there right mind would listen to anything you people had to say? The world of Pravda.

February 22, 2009 at 9:41 pm

Gary Driscoll

With this many non-productive people, is it any wonder that our economy is tanking?

February 22, 2009 at 9:33 pm

about this blog

Brian Sullivan joined FOX Business Network (FBN) in April 2008 as an anchor. He co-anchors the 10am-12pm ET hours of the FOX Business block. Prior to joining FBN, Sullivan served as an anchor for Bloomberg Television where he hosted the programs Morning Call and In Focus.
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"Big Government" Isn't Just Hyperbole