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Home Publications Blogs CEPR Blog Lumps of Coal from Congress and the White House

Lumps of Coal from Congress and the White House

Written by Nicole Woo   
Thursday, 23 December 2010 16:28

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.

Comments (3)Add Comment
written by ted bundy, December 23, 2010 6:22
I work for a public library system in Central FL and all staff (some 500 plus/minus) have had pay freezes going on 3 years now and don't expect to have as much as a cost of living adjustment for the next 3. This has happened in many public and private institutions across the country. Why the big fuss about federal workers - for 2 years? (Yeah - I've heard the reasons from you. Then you know what? Stop voting for Democrats!)

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.
written by John Shaplin, December 24, 2010 3:20
I'd trade five percent inflation for a decent, full-time job at a livable wage any day.
Not a big deal
written by Ethan, December 30, 2010 5:03
Yeah, I'm not feeling that a pay freeze for federal employees is that big of a deal. I do think that it is our congress men and women, senators and even the president himself should be taking cuts as well. They work for tax payers, not the other way around. I think the voters let them know that when many got fired in October poker sites

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