One thing that has become obvious in the economic meltdown is that the problem in many countries without significant defense spending is the growth of entitlements and luxurious retirement packages given to government employees. Of course this lesson is lost of the Marxist Duck who was last seen in a commercial with Ben Afleck.
What is shocking and surprising is that the Obama administration has yet to offer buyout to older workers. This would reduce the size of government somewhat. When my agency went on a hiring binge two years ago we asked where is the work? Of course the answer was it will be there. When it gave decent raises and promoted many people not ready for additional duties, we asked where is the work. The work still has not arrived and years latter the agency finds itself overstaffed. Now some of this is being lessened by natural attrition but it is not where we should be.