Even with BAH, a commission, a higher rank, and lots of time in service, on average you still typically make significantly less than private industry.

However, it is predictable. If you aren't super career minded and are on track to be stuck at minimum wage for a long time, then the military provides a lot of structure and probably higher compensation.

If you have the option to get into a tech/finance/etc high paying career, then there's no contest. Entry level engineer at big tech companies make about the same wage as an O6 living in a high cost of living area and like 20++ years in service. Once you get promoted once, you're making more than a general.

Lower compensation than private sector is not specific to the military. It is true of most government positions.

Typical offsetting factors that rational agents weigh include pensions, education subsidies and other benefits, job stability, and perceived upward mobility.

True - and for some areas of government it can be crazy. Someone working tech on GS really needs to want to work in government, because they're making 3-5x less.

What is really crazy to me is financial regulators on GS schedule.

And federal government pays well compared to a lot of local stuff.

I don’t see any of my well educated, well heeled peers recommending their children to join the military. Because their children have better options.

That may be your bubble.

There are plenty of people going to Ivy League schools who have military backgrounds.

Going to one of the military schools is highly prestigious. They aren’t easy to get into in the least.

You ignored the entire middle class.