Obama Calls for Federal Wage Freeze

Obama Calls for Federal Wage Freeze

Name: Surriento
Post: 2
Topic: Leaders

Title: Obama announces federal pay freeze
Author: Charles Riley, staff reporter (CNN)
Publication: CNN
Date: November 29, 2010: 3:12 PM ET
Length (word count):

(http://money.cnn.com/2010/11/29/news/economy/federal_pay_freeze/index.htm?cnn=yes)
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To reduce national debt, Obama proposes a plan to freeze federal pay that will, over the next 10 years, save an estimated $60 billion. Experts criticize that $6 trillion is needed to stabilize the debt, and the new proposal is less than 1% of the needed amount, doing little to help. Afterwards, Obama was quoted, “The hard truth is that getting this deficit under control is going to require some broad sacrifice. And that sacrifice must be shared by the employees of the federal government.” The freeze will not apply to military personnel, but to civilian federal employees, including those at the Department of Defence. Republicans (as well as the co-chairman of Obama’s bipartisan deficit commission) have, in recent weeks, argued in favor of the freeze.
The key lawmaker of Obama’s own party (Rep. Steny Hoyer of Maryland) criticized the proposal, stating that the freeze should be extended to more military personnel although not those actively serving in combat. The National Federation of Federal Employees (representing 110,000 workers) also came out against the proposal, “We understand that sacrifices will have to be made in order to reduce our nation’s growing budget deficit, but we believe doing so at the expense of dedicated civil service employees is a misguided approach.” President William Dougan commented. Public opinion on the matter differed, and in an online poll, showed that 68% of Americans voted that reducing deficit takes priority over avoiding cuts in salary and benefits for federal workers, but in the same poll, responded that avoiding significant spending cuts to Social Security, Medicare, Medicaid, college loans, aid to farmers and unemployed workers, is more important than reducing deficit.

In conclusion, Obama’s proposal intends to freeze federal pay to help reduce the nation’s debt, siding with him are, currently, the Republicans and co-chairman of Obama’s bipartisan deficit commission. Critics argue that the impact of the freeze (saving $6 bil. over the next 10 years) will do little to help reduce the nation’s debt as the amount comes out as less than 1% of the actual debt itself. He (Obama) is currently facing critic from his own party and the National Federation of Federal Employees (whom are directly affected by the proposal). Public seems to lean in favor of the pay freeze to reduce deficit, but unwilling to give up other public services in exchange.