Government Pay Freeze Obama’s Next Step In Cutting Debt

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Within the mind of President Obama, a federal pay lock-up is probably the most fiscally responsible next thing toward taming the government deficit. Accounts indicate that such a financial move would slash the government debt by $28 billion within 5 years and $60 billion within a decade. While active military would not be subject to the pay freeze, all other civilian federal workers would. Source of article – Obama announces two-year federal pay freeze by Money Blog Newz.

Too much for the government pay freeze?

The government pay lock-up is a belt-tightening according to Jeffrey Zients as the deputy director of the Obama Administration’s Office of Management and Spending budget. Congress nevertheless has to approve it though, of course. Zients explained, “it is the first of many difficult steps ahead” when discussing all the moves the government could have to make if financial ground is going to be regained by the government.

Unnecessary jobs and just spending being slashed

It seems like everybody is concerned about “fiscal responsibility” right now. The government is trying to find a way to get the deficit to go down. Some proposals have been unpopular, such as former Sen. Alan Simpson (R-Wy.) and previous White House Chief of Staff Erskine Bowles’ federal job reductions proposal that would have eliminated 200,000 government jobs over the next decade and cut 250,000 non-military private contractor positions. It seemed like that was just a little too dramatic for President Obama. He hoped that instead things like a moratorium could be put in place.

A government pay lock-up could be a negative thing

Insiders at WA D.C., don’t really thing the federal pay lock-up is going to happen. They say it is a just a symbolic gesture more than anything else. There is also fear that talented workers will keep away from govt jobs if there is a pay freeze. Yet others think the symbolic gesture by the president is precisely what is needed. It’s the proverbial olive branch extended across the political aisle.

Working for the government pays big

A recent USA Today study found that there has been a swell in the number of government workers who make more than $150,000 per year. There was a tenfold growth within the just the past five years. Since Obama took office, it has doubled. However, much of the recent swell has included doctors at veteran’s hospitals. With the two wars at hand for the U.S., there has been need for more. The workload has gone up.

Info from

Huffington Post

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

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