Congress Closer To Government Worker Pay Freeze
The House has passed a provision for the pay of federal civilian workers to be frozen at current levels. This would help reduce the national deficit, but make it less attractive to go into jobs in government service. The bill…
The House has passed a provision for the pay of federal civilian workers to be frozen at current levels. This would help reduce the national deficit, but make it less attractive to go into jobs in government service. The bill now goes to the Senate.
The problems with these sorts of provisions is that frozen pay means lower consumer spending for those who have the frozen pay. That, in turn, tend to hurt businesses which lowers their tax payments and make them more likely to lay people off.
The Washington Post reports that
The bill, introduced by Rep. Sean Duffy (R-Wis.), would extend the current two-year freeze on federal cost-of-living raises for an additional year starting next January. Lawmakers haven’t raised congressional pay in four of the last six years.
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