Tuesday, November 30, 2010

Obama Calls for Federal Wage Freeze

According to CNN Money, President Obama will call for a two-year federal employee wage freeze. It is expected to save the country an estimated $60 billion over 10 years, which would only make a small dent in the forecast deficit totaling nearly $9 trillion over the next decade.

CNN Money reports

    "It's a real money issue and a psychological first step," said Maya MacGuineas, fiscal policy director at the New America Foundation.

    Obama was scheduled to announce the proposal later Monday.

    According to the administration, the two-year pay freeze would save $2 billion for the remainder of fiscal year 2011 and $28 billion over the next five years.

    The freeze would not apply to military personnel, but would apply to all civilian federal employees, including those in various alternative pay plans and those working at the Department of Defense.

    Federal workers shouldn't feel singled out: The White House says more tough choices are on the way.

Read more here