In general I agree Govt is too big in terms of # of people and expenditures. However, I disagree on the allocation. I think military spending and people should be cut, not public service programs and education (You and I agree that education needs revamping and changes seem to be underway). We could drop $400B from the defense budget and still have the largest military in the world.
However, I would also point out that the US is the largest manufacturer, many people have moved to the services sector, and many people are unemployed as a result of manufacturing outsourcing.
The Govt sector hires more educated people but they are paid less and loss their job less frequently than private sector which is subject to faster extreme swings. Currenlty unemployment for those with a only high school education is really high – like 16%.
Same line of thought:
http://www.csmonitor.com/2007/0416/p01s04-usec.html
http://www.realclearpolitics.com/articles/2007/05/the_public_trough_is_bigger_th.html
Federal Civilian is 2% of the American population. Close to 10% with city, state (teachers, police, fire, etc)
http://www.cbo.gov/ftpdocs/78xx/doc7874/03-15-Federal_Personnel.pdf
This says 2007 numbers are 8% with military
http://wiki.answers.com/Q/What_percentage_of_americans_are_government_employed
Im sure that 1) outsourcing 2) Move from Farming and manufacturing to services sector and 3) job loss as a result of the crissis adjusted the numbers.
http://www.cfr.org/pakistan/trade-outsourcing-jobs/p7749
http://en.wikipedia.org/wiki/Economy_of_the_United_States
The United States is the world's largest manufacturer, with a 2007 industrial output of US$2.69 trillion. In 2008, its manufacturing output was greater than that of the manufacturing output of China, India, and Brazil combined, despite manufacturing being a very small portion of the entire US economy as compared to most other countries
http://facultysenate.unlv.edu/budget_memos/Public_Sector.pdf
More public sector workers are older, More public sector workers are more educated