Federal Government’s 2-Year Pay Freeze: A Game-Changer?
When President Obama first proposed freezing federal government pay for two years, I couldn’t help but feel it was like an April Fool’s joke in November. Seriously? This is the same President who, during the financial meltdown of 2008, signed off on a 3.9% pay hike in 2009 for all federal employees and followed it up with another 2.9% raise in 2010! Meanwhile, the rest of America was grappling with pay cuts and layoffs. The percentage of federal employees making over $100,000 skyrocketed from 14% to 19% during that meltdown. Sweet deal, huh?
Maybe if President Obama had listened to the multitude of voices urging fiscal restraint and fairness, he might have avoided losing his party’s mid-term elections in a landslide. But what’s done is done, and change seems to be on the horizon.
But let’s be real—the government can’t hike taxes during a recession and then not pay its own taxes, like Tim Geithner did. Shame on the government for criticizing others about being overpaid while handing out raises and fat pensions to its own people. The Dow Jones plummeted 150 points before Obama’s announcement, only to recover and close down just 39 points after his speech. See what happens when we start dismantling double standards?
Now, looking forward, I’m increasingly optimistic about 2011 being a stellar year for the US economy. Corporate earnings are on the rise, which should lead to more hiring. But what’s truly encouraging is that the American Government is finally moving towards transparency and fairness! Anti-business policies have taken a toll on employers who provide jobs for over 90% of all Americans. When businesses fear tax hikes, they hold back on expanding due to uncertain costs. A murky regulatory environment is a DISASTER for employment.
President Obama has finally acknowledged that he can’t ask others to cut costs without leading by example himself—because let’s face it, no one will listen otherwise. It’s great to see the government finally setting a good example for the people it governs. A transparent American government is a boon for the economy. Maybe miracles really do happen!
So, how hopeful are you that the government will actually start leading by example? What more can they do to prove they’re not just self-serving politicians? Why do we continue to let government officials who are supposed to serve us get away with so much?
Note: The pay freeze excludes Congress, their staff, defense contractors, postal workers, and federal court judges and workers. Because, you know, they’re special.
