Freezing Federal Employees Salaries: Time to Be "Part of the Deal"?

[CountryBoy]

http://www.fedsmith.com/article/2450/freezing-federal-employees-salaries-time-be-part.html

I'm suprised that this hasn't been mentioned sooner. I can accept this if the entire savings are put towards the budget deficit and not any new or existing entitlement programs.

 

[Warrenlm]

While you know there will be new entitlements, and the current ones are bust, a freeze will be more symbolic than a real help. Rendell said this morning all the states are counting on extension of the fed medicaid payment as they estimate their own state budget shortfalls. So without the extension they are really in dire straits. Which means more aid to the states and more deficit spending.

 

[Boghie]

CountryBoy,

1. The deficit is being maintained by increased spending and folks/companies adjusting to new regulations and taxes and business environment. Those problems are not short term - thus, expect a call for massive government layoffs as the folks prefer to go without some government services rather than pay for staff and stuff they do not need.
   
2. There is deflation out there. Expect salaries to be cut. We could have gotten by with a pay freeze for a few years but the horses are out of the barn. And, we have tacked hundreds of thousands of new Federal employees on top of the problem. A freeze will not be enough.
   
3. The economy recovered from the crash and still provides less revenue to the Feds than last fiscal year. How did that happen? Tax management is now worth the effort. And, you don't want a big change for CY2011 so you start now.

Expect a Christie to float to the foreground very, very soon:worried:

 

[CountryBoy]

I agree Boghie,

But I don't think we're outta the woods yet on the economy, unless the Feds keep throwing money at the problem, but if that would ever end, we'll really see how weak the economy is. It's all artificial now. We might as well buy a lottery ticket.

 

[CountryBoy]

While you know there will be new entitlements, and the current ones are bust, a freeze will be more symbolic than a real help. Rendell said this morning all the states are counting on extension of the fed medicaid payment as they estimate their own state budget shortfalls. So without the extension they are really in dire straits. Which means more aid to the states and more deficit spending.

Yeah, before this is over we are going to go thru for a very rough time. We haven't begun to see the worst. As I read somewhere this morning, the can they keep kicking down the road is just getting bigger and nothing is being done, except spend more money. :worried:

 

[nnuut]

Current Retirees pay has already been frozen. Due to the CPI-W and a high cost of living adjustment in 2009 (5.8%) Government and Social Security retirees did not get a Cost of living adjustment in 2010 and it is predicted they (WE) won't in 2011. Of course there is no inflation according to the Government. Try to look in the grocery store and I think you will find it along with MORE TAXES that don't count and on and on and on!!

 

[CountryBoy]

Try to look in the grocery store and I think you will find it along with MORE TAXES that don't count and on and on and on!!

Ah but remember, they pull it out of the inflation equation, the government doesn't count food and gas as inflationary. :suspicious:

 

[Boghie]

NNuut,

Feel for you brother, feel for you. It is odd (wrong) that CPI doesn't take into affect rent and fuel - but, then again, the cost of rent has dropped massively.

Glad you have safe assets in your own little 'Lock Box' (TSP) that no Congressional Raider can make a grab for

Anything else - salaries, pensions, agreements, etc. - can be 'adjusted'.

We are IN a Fourth Turning. Expect lots of changes - even ones that seem illegal right now. Laws will change.

:worried:

 

[Bullitt]

I felt that when we got that big COLA increase a few years ago when oil was at $140 that it would be the last increase we see for many years.

 

[nasa1974]

http://www.fedsmith.com/article/2450/freezing-federal-employees-salaries-time-be-part.html

I'm suprised that this hasn't been mentioned sooner. I can accept this if the entire savings are put towards the budget deficit and not any new or existing entitlement programs.

CB, I agree with you. The only problem is that it would mess with my high 3 for my retirement date in 2012. But if the money saved went to reducing the deficit then I am willing to go that route.

 

[nnuut]

Ah but remember, they pull it out of the inflation equation, the government doesn't count food and gas as inflationary. :suspicious:

The high COLA was due to the price of gas in 2008 driving the price of everything UP, so Gas does count AND:
http://www.socialsecurity.gov/OACT/COLA/colaseries.html

How is the CPI index used to measure price change?

The CPI measures the average change over time in the prices paid by urban consumers for a representative selection of consumer goods and services. The selection of goods and services (commonly referred to as the "market basket") is based upon actual consumer purchasing patterns, which are determined from a survey of consumer expenditures. Goods and services in the market basket are weighted according to the share they constitute of total consumer spending. The major expenditure categories are:

• Food and beverages
• Housing
• Apparel
• Transportation
• Medical care
• Recreation
• Education and communication
• Other goods and services

http://www.seattle.gov/financedepartment/cpi/overview.htm

 

[alevin]

I too want the freeze to go to paying down the deficit. I can live with that. But Boghie, I agree we may already be in a 4th Turning-did it start in 2001, or did the beginning get deferred til 07, I havent figured that out, personally. Are we still in 3d Turning (Unravelling)? Has the 4th even started yet. that is the real question.

I'm so glad I read the book back in 05, it gave me a head start on making sense of current events and what we're still facing.

 

[Boghie]

I too want the freeze to go to paying down the deficit. I can live with that. But Boghie, I agree we may already be in a 4th Turning-did it start in 2001, or did the beginning get deferred til 07, I havent figured that out, personally. Are we still in 3d Turning (Unravelling)? Has the 4th even started yet. that is the real question.

I'm so glad I read the book back in 05, it gave me a head start on making sense of current events and what we're still facing.

It definitely started in 2000 or 2001. Was it the first market correction/crash (dot.com) or 9/11? Could be either. We will know in hindsight – but that is quibbling with details. Now we are in/dealing with an absolute economic crash - nobody can deny that. And, this might not be the end decision. A devastating war ahead?

Fourth Turnings take a generation. Right now the culture wars (Socialism vs. Traditional Liberalism) are firing on all cylinders. No more yak about side issues. Basic absolutes. Now we are talking about the basics of a socialist planned economy vs. a capitalist economy featuring individual freedom. We are competing FDR vs. Reagan, Hayek vs. Keynes, Limbaugh vs. Obama. Who will be the ‘Deadliest Warrior?’

We have about a decade left for fun in the sun.

 

[alevin]

I've learned so much the past 3 years, things I never knew-the different economic major philosophies. Never heard of Hayek til a couple years ago-I'm a believer at this point. still not a Limbaugh person, probably never will be. guess that makes me a moderate-no surprise there.

War is still definitely in the cards for a 4th turning, just hope you're right that we're already 10 years in. I personally think if we are, that it was 9/11 that kicked it off. I instantly thought so when I read the book in 05.

 

[Boghie]

Alevin, if you read Hayek you can hear Limbaugh.

Regretfully, kindness has little or no role in a 'Fourth Turning'. There will be winners and losers. The end will be absolute. I don't think it had to be this way. But, it is the way it will be.

 

[Silverbird]

COLA = inflation adjustment, and inflation isn't going up right now. I'm not holding my breath for any increase next year since I'm still stuck in my current step.

 

[Buster]

http://www.fedsmith.com/article/2450/freezing-federal-employees-salaries-time-be-part.html

I'm suprised that this hasn't been mentioned sooner. I can accept this if the entire savings are put towards the budget deficit and not any new or existing entitlement programs.

Again we are looking for the worst..I read this differently than the "oh woe is me" sentiment that is coming from this thread..

Senators John McCain (R-AZ) and Tom Coburn (R-AZ) have proposed to freeze salaries and bonuses for federal employees. There is probably little chance of their new amendment being enacted but readers should be aware of the initiative as, if it does pass, it will have an impact on federal employees.

Enjoy life..and stop worring about something that hasn't even a chance of happening

 

[CountryBoy]

Hey Buster,

I can't do aything about it, so I'm not worrying about it, just passing on the news. I'm prepared to handle the freeze. I'm slowly getting myself back into to my old "I can't do anything about it, so I don't give a crap " mode. It just took only 5 years after major surgery. When faced with ones mortality, it plays on your mind some, but now I'm getting back into the mode I was in before the surgery.

That's a good laid back mode for me. I just say pour it on, I'm ready for whatever they dish out. Let the pain begin. :laugh:

I don't think it'll happen either, unless the public really starts screaming for the feds to sacrifice also and those articles are starting to hit the papers, with more frequency.

Personally I'd like to see this fever hit it's peak with the public in about mid to later October. Now that would be good timing.

Have a good Memorial Day Weekend bud and be careful in the hot tube.

CB

 

[Steadygain]

I can't do aything about it, so I'm not worrying about it, just passing on the news.

I think that's beautiful and speaks so incredibly high for everything you really are deep down and what you live for.

I appreciate your sincerity and committment to letting all of us know these things. I personally believe everyone should do their part and the Federal Employees are so deeply fortunate to have the jobs they have -- with solid steady pay and benefits galore. So I don't mind at all. But it would bother me if it was not across the Board. So if the higher ups and Judges and all the others continue getting increases that far exceed the rest of us -- or if anyone gets an increase and I don't (or you don't) then I believe that's wrong.

I'm prepared to handle the freeze.

I would bet that anyone who puts 'Family Values' over money and makes a point of being with his family -- more than likely does better to live within his means and is way more prepared for an event like this.

I'm slowly getting myself back into to my old "I can't do anything about it, so I don't give a crap " mode.

There is a huge difference between honestly understanding and really knowing 'We can't do anything about it' - and accepting that and trying not to let it wear us down and make life miserable...

and 'not giving a crap'. You DO CARE -- CB -- and there is nothing that more defines you than this. For you to NOT Care would be the total loss of who you are and all you represent. It is your identity.

It just took only 5 years after major surgery.

I may not know much -- but I believe the 5 year Mark is perhaps the strongest indicator that the surgery was the greatest success possible. This world would not be the same without you CB. Your influence is tremendous.

When faced with ones mortality, it plays on your mind some, but now I'm getting back into the mode I was in before the surgery.

Most of us don't acknowledge how our 'mortality' is a very deep and inescapable part of our life. All the more when you see that the deepest happiness and knowing life at it's fullest is at least 4 years away - and you simply have to make do and give it your best and try to put on a happy face - it can be difficult. But honestly striving to be a positive influence to those you meet and earnestly stiving to let love and compassion and warmth and understanding be freely given to everyone --- and extending unconditional acceptance with all you meet does have it's rewards.

That's a good laid back mode for me. I just say pour it on, I'm ready for whatever they dish out. Let the pain begin. :laugh:

CB

I'd say you're one of the truest and most beautiful members we have.

Have a great weekend CB -- this was wonderful !!

 

[CountryBoy]

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Have a great weekend CB

You too Steady.