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President Obama approved a salary freeze for all federal government employees for 2011 and 2012. This is not good news for the DC region economy. In a sense, this decision leads to a pay cut for federal workers because the cost of living in this area continues to grow faster than the average wage increases.
With a Republican-majority House and a more politically split Senate, the next step would be to eliminate federal government positions across several agencies.
Everybody's tightening up at all levels of government and private sector. What choice do we have until the economy starts growing vibrantly again? Smart move.
How do you think this will affect contractors? I think there are a ton more contractors than government workers in the DC area.
Contractors are always the first on the chopping block when federal agencies are hit with budget cuts, hiring freezes, possible furloughs and other cost-cutting measures. So I think we'll see a ton of contractors summarily dismissed and looking for work over the coming months.
What won't happen is a mass exodus of feds. Certainly, the salary freeze could financially hardship some federal employees, but it won't drive feds to leave their jobs either.
What pisses me off is that these pay cuts affect the commoners (federal workers) and not the kings and queens (members of Congress).
"Oh, we must practice fiscal austerity and cut back on spending!"
"Good idea Nancy, what should we do?"
"Hmm... how about a pay freeze for all federal employees?"
"What?! How the hell will I be able to buy that Aston Martin without my pay raise?"
"Damn, you're right. Okay, we'll just cut it for everyone who's not in Congress. **** the peasants!"
To be fair, Congress is on a completely different pay system. GS cuts and freezes don't affect them because they're not executive branch employees. (Every agency is part of the executive branch.)
On the other hand, I wouldn't hold my breath waiting for Congress to freeze their own pay, or cut their benefits to line up with GS employees. Republican or Democrat, the one thing every politician can agree with is that they're better than everyone else.
On the other hand, I wouldn't hold my breath waiting for Congress to freeze their own pay.
I would. They already voted to decline their automatic CoL increase for 2011, six months ago. Just like they did for 2010.
Since the current CoL adjustment method was adopted in '91, Congress has voted 8 times to deny themselves the increase. They'll make it 9 times before August recess when they vote against the 2012 automatic adjustment.
I would. They already voted to decline their automatic CoL increase for 2011, six months ago. Just like they did for 2010.
Since the current CoL adjustment method was adopted in '91, Congress has voted 8 times to deny themselves the increase. They'll make it 9 times before August recess when they vote against the 2012 automatic adjustment.
thanks for posting based on facts. i swear sometimes people just say stuff just to say it.
I think it's going to be an adjustment more than anything else. The federal government can't balloon out of proportion forever. Nothing works that way. Got to let off some steam.
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