Obama to Freeze Federal Employee's Pay for 2 Years

Surely this is a Populist move. The Obama administration is planning on Ordering Pay Freezes for Federal Workers.

The president’s proposal will effectively wipe out plans for a 1.4 percent across-the-board raise in 2011 for 2.1 million civilian federal government employees, including those working at the Defense Department, but the freeze would not affect the nation’s uniformed military personnel. The president has frozen the salaries of his own top White House staff members since taking office 22 months ago.

The pay freeze will save $2 billion in the current fiscal year that ends in September 2011, $28 billion over five years and more than $60 billion over 10 years, officials said.

Federal employees only make up about 2-3% of the total workforce. There was a USA Today article which got people's panties get all in a bunch about the low unemployment rate and much better pay for Federal employees versus private ones.

Some lawmakers are planning to use the lame-duck session that starts Monday to challenge the president's plan to give a 1.4% across-the-board pay raise to 2.1 million federal workers.

It seems this move by the Obama administration is to head 'em off at the pass. This stops the GOP wanting to make this an issue as well as avoids a 10% pay cut for Federal Employees. Instead of course, doing something to raise the pay of the private sector.

Here are some statistics from the USA Today article:

•Government-wide raises. Top-paid staff have increased in every department and agency. The Defense Department had nine civilians earning $170,000 or more in 2005, 214 when Obama took office and 994 in June.

•Long-time workers thrive. The biggest pay hikes have gone to employees who have been with the government for 15 to 24 years. Since 2005, average salaries for this group climbed 25% compared with a 9% inflation rate.

•Physicians rewarded. Medical doctors at veterans hospitals, prisons and elsewhere earn an average of $179,500, up from $111,000 in 2005.

Federal workers earning $150,000 or more make up 3.9% of the workforce, up from 0.4% in 2005.

Since 2000, federal pay and benefits have increased 3% annually above inflation compared with 0.8% for private workers, according to the Bureau of Economic Analysis. Members of Congress earn $174,000, up from $141,300 in 2000, an increase below the rate of inflation.

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You have to cut somewhere and

You have to cut somewhere and you have to start somewhere, if it saves only $2 Billion, so be it, but lets not belittle any savings small or large because that’s the kind of attitude that helped get the Federal Government into this mess in the first place. Every Billion matters and if they cut enough of those Billions, they add up.

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