Peter Hargreaves has criticised ministers for failing to shore up the economy, and omitting to "look in their own backyard" for solutions to the problem.
The Hargreaves Lansdown co-founder said the public sector consisted of people working "flexi-time" and "going sick", and would be better off if "90% of the top 10%" was stripped out.
"The economy is knackered and the problem is government expenditure," Hargreaves said in an interview with The Sun. "You get that idiot Nick Clegg talking about a tax on the rich. He's probably got five staff who do nowt.
"The public sector is all flexi-time and people going sick. The working man knows the problem.
"His neighbour works for the council and goes in three days a week.
"He knows he's paid well as he's got a nice car, goes on nice holidays. Why would you work hard yourself? The people in government are too obsessed about getting re-elected.
"They don't realise running the country means tackling some problems.
"When there's an accident now you get five police cars, three ambulances and two fire engines turning up - that tells you all you need to know. My friend went into hospital and there were 17 people in the operating theatre.
"They should take out 90 per cent of the top ten per cent. We've got more generals than the US army - and more admirals than ships."
The executive started wealth manager Hargreaves with Stephen Lansdown in 1981. Earlier this week, the company reported full-year profits to 30 June were up 21% to £152.8m.
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