Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
The Hidden Cost of Government Payroll Inflation
Lucas and Luna dissect how the federal government's reliance on temporary hiring surges creates long-term wage rigidity, using the post-pandemic civil service expansion as a case study. They explore why public sector wages now outpace private sector productivity growth, creating structural inflationary pressure that persists even after stimulus checks dry up. This episode reveals how the 'sticky' nature of government employment contracts locks in higher labor costs for decades, forcing difficult choices between tax hikes or service cuts. Listeners will learn about the specific…
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