Obama Suggests Two Year Pay Freeze for Federal Employees

Obama has proposed an idea to aid in America's effort to cut back on spending and to try and tackle this enormous budget deficit.


Obama has suggested a two year pay freeze for all civilian federal employees or civil servants.

I want to be clear to communicate that the pay freeze will not effect the military. So if you are in the armed forces and are expecting a raise, or something of the like, than you can rest assured this fiscal action will not effect you.

Also, because many of my readers are not financial gurus. I want to make clear that a pay freeze does not mean these federal employees will not be paid for the next two years. This simply means that they will not get a raise.

The proposed plan will cut the deficit by almost 30 billion dollars over the next five years.

The average salary for a civil servant that deposits a federal pay check on a regular basis makes around $125,000  dollars. This is about twice the salary of the average American.

I am personally OK with this measure as I don't really think the government needs to be increasing salaries. This move seems obvious. Kinda like eliminating the Bush Tax Cuts.

Republicans seem receptive to this idea from Obama.

I recently posted on the Bush tax cuts and the conflict thriving amidst it's looming expiration.  I have something to add...

I was going to put it right here but I think I will go ahead and just create a new post for it.

Find the new post on some of my additional thoughts on the Bush Tax Cuts and Republican Shame.