Two-year federal pay lock-up suggested by president

The government deficit is out of control, and President Obama’s next idea to regain solid financial footing is to put a two-year federal pay lock-up into impact. It is projected that this move will save the U.S. $28 billion within 5 years and $60 billion over the next decade. While active military would not be subject to the pay freeze, all other civilian government workers would. Article source – Obama announces two-year federal pay freeze by Money Blog Newz.

Government pay lock-up: Very first of several financial surrender

Congress still has to approve the government pay freeze plan although deputy director of the Obama administration's Office of Management and Spending budget, Jeffrey Zients, said it’s a belt-tightening. "It is a first of many difficult steps ahead," said Zients, in reference to other moves that the administration believes the government must make to ensure that the United States remains on solid financial ground.

Firing federal careers and cutting just spending

It appears like every person is concerned about "fiscal responsibility" right now. The government is intending to discover a way to get the debt to go down. There was a government career reductions plan that was stated by former White House Chief of Staff Erskine Bowles and former Sen. Alan Simpson (R-WY.) came up with. This was fairly unpopular though as through the next decade, over 250,000 private contractor positions and 200,000 federal careers would have been lost. It seems like things such as moratorium on earmarks were what Obama would rather have as everything else seemed like too much.

Why a federal pay lock-up would be negative

Numerous WA, D.C., insiders believe that Obama’s federal pay freeze is much more a symbolic gesture than anything of great financial meaning. A pay lock-up would also make it so govt careers do not get talented workers anymore. Yet others think the symbolic gesture by the president is precisely what is needed. It makes it seem like politics have extended an olive branch.

Federal workers making more cash than ever before

A lot more federal employees are making too much. Over $150,000 a year is much more common in the government now, accounts USA Today. There was a tenfold growth in the just the past five years. Since President Obama took office, it has doubled. This change has partly to do with doctors. At veteran's hospitals, they’re considered a federal employee. The workload has gone up a ton since the U.S. has been in two wars.

Citations

Huffington Post

huffingtonpost.com/2010/11/29/federal-pay-freeze-obama_n_789141.html