In the mind of President Obama, a federal pay lock-up is the most fiscally responsible next thing toward taming the government deficit. Such a move will reportedly save The United States $28 billion in 5 years and $60 billion in 10. While active military would not be subject to the pay freeze, all other civilian government employees would. Source for this article - Obama announces two-year federal pay freeze by Money Blog Newz.
It appears the federal pay lock-up is a compromise
The federal pay lock-up is a belt-tightening based on Jeffrey Zients as the deputy director of the Obama Administration’s Office of Management and Spending budget. Congress still has to approve it though, of course. “It is the very first of many difficult steps ahead,” said Zients, in reference to other moves the administration believes the government must make to ensure the United States remains on solid financial ground.
Just spending cuts and federal career cuts
It appears like everyone is concerned about “fiscal responsibility” right now. The govt is intending to find a way to get the debt to go down. Over 250,000 non-military contractor positions and 200,000 government careers would be eliminated in the next decade with the unpopular plan that previous Sen. Alan Simpson (R-Wy.) and previous White House Chief of Staff Erskine Bowles’ came up with. President Obama has avoided such dramatic tactics and focused more on the spending reductions that could possibly be obtained via a moratorium on earmarks.
Why a government pay lock-up could be negative
Numerous Washington, D.C., insiders believe that Obama's government pay lock-up is more a symbolic gesture than anything of great fiscal meaning. A pay freeze would also make it so government jobs don’t get talented employees anymore. Some say that the symbolic gesture is just what the country needs right now. It appears like the govt is extending a peace offering. That may be how it's taken.
Government workers making more money than ever
More government employees are making excessively. Over $150,000 a year is more common in the government now, accounts USA Today. There was a tenfold growth within the just the past five years. Since Obama took office, it has doubled. This change has partly to do with doctors. At veteran’s hospitals, they're considered a government employee. The workload has gone up a ton since the U.S. has been in 2 wars.
Citations
Huffington Post
huffingtonpost.com/2010/11/29/federal-pay-freeze-obama_n_789141.html
Comments
Post new comment