The Deficit Commission came out this past week and stated that we may have to raise the retirement age in order to shrink the deficit. The polls said people felt very uncomfortable with this reality.
What we are going to find with the deficit is we cannot kick the ball down the field any more. Some of our leaders are going to have to take a stand. Putting a band-aid on a severed artery won’t cut it. We will have to make radical changes. This will affect everyone. But they must be done. How about starting with a massive pay cut across the board from all in government?
President Obama wants to give the 2.1 million federal workers a pay raise! That's rich in more ways than one. Here's a look at some of the nitty-gritty details.
Government workers with 15 to 24 years experience have enjoyed a 25% increase in pay since 2005 versus inflation up 9% during the same period.
Civilians in the government making $170,000 stood at 9 in 2005, 214 when Barack Obama entered office, and hit 994 this June. Check these numbers out.
What does a business do when they experience a downturn in revenues? First they cut out internal costs that are unnecessary followed by pay cuts. We need a massive pay cut in government followed by a significant pay cut (try 30% or more). The problem is there is not incentive in government to shrink unless we as constituents force the issue.
Secondarily the harder issues of entitlements such as Social Security must be addressed.
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