Lumps of Coal from Congress and the White House
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Written by Nicole Woo
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Thursday, 23 December 2010 16:28 |
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Across the nation, federal employees are getting undeserved lumps of coal in their Christmas stockings this year. When President Obama signed the 2 1/2-month extension of government operations yesterday, it included a 2-year pay freeze for federal workers. While the White House argues that the freeze will save $5 billion by the end of 2012, CEPR's Dean Baker points out that this reduction in money that federal workers have to spend will lead to drops in private sector employment in 2011 and 2012 of 7,000 and 18,000 jobs, respectively.
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Here's a larger point. The folks at CEPR (Dean & Mark at least) have consistently argued for the FED to target a rate of inflation as high as 5%. Now imagine for a second that the FED did what they want - and inflation actually reached 5% for the next 2+ years. That situation would result in a fairly serious drop in the real pay for federal workers (and myself and millions of others) - so you ass fucks need to think twice about what "progressive" policies you advocate.