Posted by Simon
The annual federal deficit is lingering at about a trillion dollars. Yes that is Trillion with a “T”. I have a way to solve a big part of this problem.
- Cut the pay and benefits of all federal employees about 10%.
- This would save the federal govt. about 200 billion a year. (see the math below the fold)
- It would also signal that we are serious about cutting the size of government.
- The cut could be progressive. About 25% for the best paid and 5% for the lowest paid federal workers.
Government workers are by all accounts better paid than those in the the private sector and have higher benefits and much higher job security. This change would have the effect of getting their pay back in line with the private sector and would solve a substantial part of the deficit issue.
How popular would this idea be with the voters? the media? Could it be a strategy for winning the presidency?
How I did my admittedly very rough math:
- The Federal budget is about 3 trillion dollars.
- Most of it is transfer payments (grants to states, Social Security, Medicare etc.) or salaries of employees.
- I’m assuming that 2/3′s is salaries of employees and contractors.
- Ten percent of 2 trillion is 200 billion.
- Yes I’m including the military.
- Yes I’m including direct and indirect contractors.
- Yes I know this would take a lot of money out of the economy.