When Politicians Go Private

It's no secret that high-profile public servants can make a lot of money in the private sector after they leave their jobs. Sometimes, they go back into government again later, and we all get to see how much money they've made in the interim: Dick Cheney and Don Rumsfeld spring to mind. And, now, Rudy Giuliani, who made at least $17 million last year, not including his profits on the sale of Giuliani Capital.

Giuliani, 62, a former New York mayor who has led in polls for his party's presidential nomination, earned $11.4 million in speaking fees, according to his disclosure filed with the Federal Election Commission. He received $4.1 million from his New York-based consulting firm, Giuliani & Co. LLC; $1.2 million from his Houston law firm, Bracewell & Giuliani LLP, and $146,092 in royalties for his 2002 book, ``Leadership.''
When Giuliani left the mayor's office in 2002, he reported assets between $1.2 million and $1.9 million. According to his disclosure to the FEC, his assets had grown to at least $17 million last year and perhaps as much as $70 million. His share of the consulting firm was worth between $5 million and $25 million.

Giuliani's brace of seven-figure salaries makes the $479,000 paid to John Edwards by Fortress Investment Group seem positively modest. And it also raises the question of the opportunity cost to public servants of staying in the public sector. The president of the World Bank, for instance, makes $400,000 tax-free: a hefty sum, by normal standards. But were Tony Blair, for instance, to take the job, he might be giving up the opportunity to ensure that all his children live very comfortably for all their lives.