Federal Pay Cut Analysis

Today, President Obama proposed a freeze on federal pay for specific workers for a period of two years and we are left wondering why. After all, the President has said repeatedly that we need the public sector to get the economy "back on track" because the private sector cannot.

So if we cut spending in the public sector or at least cancel scheduled increases, does this mean we are acknowledging that the private sector is better equipped to get the economy moving?

Or is this move just a ploy to take steam away from Republicans who will be taking control of the House and pushing massive cost-cuts. We believe that Obama has not found religion on the issue and is trying to reduce the amount of credit the Republicans will get for future cost-cutting in the next election.

Moreover, he will now be able to make it seem like he cares about deficits and being fiscally responsible.

We hope of course that we are wrong and that Obama has decided to become fiscally conservative but this would not be consistent with the plurality of his speeches and actions.

But from a political standpoint, it is a smart move.

In the mean time, it is worth reading two recent articles in the USA Today on government versus private sector compensation. One discusses how many government workers make over $150,000 per year and the other discusses how federal wages and benefits are double what they are in the private sector.

Based on this information, wouldn't it make sense to announce federal pay cuts - not just a freeze?
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As a federal worker I wish I was paid what USA Today said. These figures are inflated the truth is that federal workers are paid 24% less that in the private sector. Personally I want to see congress and the President cut by 50%. That would be fair since they are the problem.

It is surprising that your pay is lower than what the media is reporting and obviously if the facts are wrong, then we owe you an apology.

I agree we can cut Congress way back, reduce the number of staffers, private jets and perks, etc and be much better off for it.

Obama reaches out and makes a decision to cut government pay by freezing pay raises for 2 years. Will this cut back stimulate and re-generate the economy? Not from the perspective of lower graded goverment workers. It has just kicked the lower graded workers (lower economically placed Americans) in the belly financially. What is even more sad is that health care over billing and fraud is at it's highest and the the providers on a daily basis are finding stronger and more corrupt ways to bill you 5 times over for general health care needs and continues to cripple typical Americans drive to survive whether physically or financially. I am disappointed at some of the retoric I have read about this government pay freeze, because it generates and stirs up the hate issues, that are far too prevalent and supported in our country. I am a proud government worker and no I am not sending this message during my work hours, but after a 11 hour work day, of which 3 of the hours were donated 'love time' because I am a mid-level manager of about 100 government workers who received word that for the next two years of their lives they can plan to seek alternate means to bridge the cost of living gaps, that will grow. Again, I ask will this cut back stimulate and re-generate the economy? We will see... A better question for Obama to ask himself and those who advise him daily? Will the government worker cast a vote for his accomplishments in his first term. It depends on the impact of his leadership, decisions and/or outcomes. For now, I will plan better, spend less and watch our economy do what it will do. Peace be the journey.

Please forward this anonymous message to the President and his cabinet.

I say cut the salaries of the house and senate and regulate how much they pay to staffers. Do this with the presidents office as well and with the judiciary. Doing that alone would save a ton of money if not make some of it back. Why do they need so much money when the rest of us are scraping by with so little.

Clean the hill, then the Pentagon, not the military just the Pentagon itself, and we should see things get better for everyone.

Recent Comments

  • Musing: I say cut the salaries of the house and senate read more
  • Anonymous - Government worker: Obama reaches out and makes a decision to cut government read more
  • Rich Tehrani: It is surprising that your pay is lower than what read more
  • anonymous: As a federal worker I wish I was paid what read more
  • Peter: Unless you live in Florida and watched the drama unfold, read more
  • Tom Keating: Ok, that's just freaky, cuz I watched this like 15 read more

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