Wednesday 1 December 2010

heat miser

Most US federal workers are handsomely compensated as it is, mostly for keeping-up-appearances. Part of the out-of-date and out-of-touch rationale, historically for around two percent annually, awarded at the beginning of the year, was as a retention bonus to compensate for the difference between public- and private-sector salaries, ad infinitum--which does not make much sense because there are few real corollaries.

Following the example of US state and local governments, the federal government has decided to freeze the pay of its civilian workforce, with notable exceptions, in a cosmetic gesture of solidarity to unbalanced budgets and as a concession to a divided legislature. While not arguing for another entitlement or casting aspersions towards civil servants that have been furloughed or had their salaries cut, this is squandered political capital, since nominal fiscal savings will go unnoticed as will any cross-party appeasement, and the only segment of the population that will take notice will do so in a negative way, because a few will suffer privately by diminishing their spending power by two percent or so (not to mention a proportional two percent into 401K plans, retirement accounts, income tax, etc. although most of that is just a shell game too) in exchange for only negligible public benefit. Efficiency and trimming expenses where quality and morale is not compromised is a virtue but feckless actions are disgruntling.