Jeff Gundlach, the brains behind the $30 billion DoubleLine Capital, hosted a webcast with clients on Tuesday. The title of his presentation: “The Decline and Fall of the Roman Empire.“He drew parallels between the U.S. and Rome, highlighting excessive government spending.
Gundlach noted that one of the major problems with U.S. federal deficits is federal government employee pay.
He was appalled to see that these employees made “so much more than the private workers, who pay the taxes, that pay the salaries of the government workers!”
We pulled the three slides from Gundlach’s presentation where he discusses this issue.
Unionization rates are extremely high in the federal government, which makes it difficult to 'trim the fat.'
Federal employee pay is rising faster than private employee pay. And the benefits are much more generous.
The average federal employee makes nearly 5 times that of restaurant and bar employees, which is where many of America's young people work.
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