I agree with most of what you said except the part that voters has the power to re-balancing the inequality through voting. I think the inequality is probably permanent now with the powerful public employee unions buying off our politicians. The only hope is that our government run out ways of borrowing money.

I was excited with the tea party movement in the beginning hoping that it could be a movement of fiscal conservative causes until they brought in Sarah Palin and turned racist.

[quote=EconProf]
Another observation is that decades ago, government workers at all levels did indeed make less than their private sector bretheren (and got generous non-monetary compensation as an offset), and in recent decades leap-frogged ahead in pay as well thanks to public sector unions. I predict a re-balancing in future years as voters demand a reset.[/quote]