Here’s something for Michael “There’s been no short-term austerity” Grunwald to chew on: President Obama will extend the federal employee pay freeze into next year, meaning that federal employees will have seen their wages stagnate for at least two and a half years.
|By: David Dayen Monday January 9, 2012 7:30 am|
There is a depression going on in the public sector. When cops and firefighters and teachers and nurses lose their jobs, they lose purchasing power, the ability to hire private contractors or visit private businesses for the purchase of goods and services. Public employees don’t use a different currency; you cannot divorce them from the private sector.
|By: David Dayen Thursday December 8, 2011 11:10 am|
House Speaker John Boehner announced his party’s year-end legislation that would extend the payroll tax cut, unemployment insurance benefits and a patch to prevent a 27% cut in Medicare reimbursement to doctors. The legislation also includes poison pills which the President already vowed to reject, designed as sweeteners to get conservative members on board.
|By: David Dayen Sunday December 5, 2010 6:00 pm|
Here’s just a quick example for why a pay freeze for public workers is about the stupidest policy you could put together right now. If you’re Barack Obama, you believe have engineered two signature victories through the Congress. You have a health care bill where the regulation that is key to the bill has been outsourced to state insurance regulatory shops (which is a problem), meaning that the relative effectiveness of the regulations are contingent on states allocating resources to those departments. In this time of budget cuts at the state level, that’s shaky.
|By: David Dayen Tuesday November 30, 2010 3:20 pm|
We’ve officially gone around the bend. That’s right, the organizing project of the Democratic National Committee wants you to organize in support of freezing public worker salaries.
|By: David Dayen Monday November 29, 2010 3:40 pm|
On a conference call just now, White House Communications Director Dan Pfeiffer and U.S. Chief Performance Officer and the Office of Management and Budget’s Deputy Director for Management Jeffrey Zients defended the White House’s proposed pay freeze for federal employees from the charge that this will drive talented workers out of government as they see no prospects for individual advancement.
|By: Scarecrow Monday November 29, 2010 11:45 am|
The White House plan for a federal wage freeze is obviously political and only symbolic, because the dollars involved are trivial in relation to the total deficit. But more important, the White House rationale confirms for the umpteenth time that the Obama White House’s economic thinking and priorities are deeply flawed.