War is Coming - The Public vs. Government Workers

In a recent Welling@weeden interview, Gary Shilling makes this point: “On average, public (government) employee’s wages are 34% higher than in the private sector and their benefits are… 70% higher. They have very lush pensions and retiree benefits, which don’t exist at all for many private sector employees.” At the same time, the private sector does not want their services cut – police safety, garbage pickups, schools, etc.

How can the government keep providing services, but cut expenses at the same time?