Proposed Federal Wage Freeze
As the federal deficit begins to approach $14 Trillion dollars, new proposals are underway to reduce government spending. The latest being considered is a freeze on government employee wages for the next two years. The average annual government employee salary is now over $80,000 dollars as compared to just slightly over $50,000 dollars for private sector employees. A wage freeze for government employees would create a savings of approximately $60 Billion dollars over the next ten years. A ten percent reduction in federal wages could create a savings of approximately $22 Billion dollars per year. If additionally, there were to be a 10 percent reduction in the number of federal jobs, this could cut the deficit another $219 Billion dollars annually, by some calculations.
The union representing federal employees has come out strongly against any proposed wage freeze. They argue that it is not fair to try to balance the budget by punishing hard working federal employees. In any case, it is obvious that a federal wage freeze proposal will not in itself come close to balancing the budget any more than a piece of gum would have plugged the leak in the Titanic. It is going to require painful sacrifice on the part of all Americans in order to restore the financial health and security of our nation.
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In: Business Stories · Tagged with: Billion Dollars, Budget, Employee Salary, Employee Wages, Federal Deficit, Federal Employees, Federal Jobs, Federal Proposal, Federal Wages, Financial Health, Government Employee, Government Employees, Gum, Painful Sacrifice, Private Sector Employees, Proposals, Salary Information, Trillion, Wage Freeze
