Counterproductive

Obama will freeze federal worker pay for two years as a “a symbolic gesture toward public anger over unemployment, the anemic economic recovery and rising national debt.” Too bad taking more money out of the economy will hurt the recovery, depress the job market and stunt the kind of growth that would solve our debt troubles.

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6 Comments

  1. Ian

    Federal workers are paid with money from taxes. Paying them less (or at least not more) means less taxes. That is less money charged to the American people, which means more money in the economy. I’m not saying I agree with the idea, but, I mean be fair about it. It isn’t really taking money out of the economy per se.

  2. Chris

    Yeah, it was unfair of me to say it’s taking money out of the economy. But this is the opposite of what government needs to do. We need more people to spend money to create demand in the economy and spur growth in business and employment by those businesses. Purposefully stagnating the wages of middle class government workers runs counter to that idea.

  3. Ian

    Freezing federal worker pay definitely sucks. I think a freeze on hiring would be worse though. New jobs should be better than raises for existing ones.

  4. Here is another thought…..the people that lose their unemployment benefits will leave the rolls and thus the employment figures will look better…at least the ones that all the politicians use in their spin sessions….

  5. Chris

    Ian,
    I agree it’s better than a hiring freeze, but it’s still worse than Obama and the Democrats doing absolutely nothing.

  6. Chris I agree….but then I ask….will he and they find their cajones or keep trying to play this game that has no successful outcome?