Financial Management Paper

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Financial Management Paper

By | Feb. 2011
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Just recently on Monday November 29th President Obama proposed a ‘freeze’ for all federal civilian workers’ pay for the next two years. Fortunately this proposal will not affect those involved in the military personnel. The purpose for this freeze is to help reduce our nation’s mounting discrepancy and while decreasing our debt it will also increase its savings to about 2.5 billion dollars per year. This proposal does not seem to be too accurate since it only applies only to across-the-board and cost-of-living increases and will not affect the federal pay raises. Not only is this ‘freeze’ affecting civilian workers but also both the Democratic and Republican parties. Considering that President Obama is Democratic the ‘freeze’ would most likely intimidate the Republicans but in reality the Democrats rejected the idea. “Republicans welcomed the pay freeze but it drew silence from most top Democrats” (Bohan, Reuters). Since 2009 after Obama took office he has frozen salaries within the White House. What Obama also pushed last year was eliminating bonuses that were given to political appointees. Obama is doing his best to regain the countries’ capital by freezing people’s salaries but it seems as if he hasn’t made much improvement. After all we are still in extreme debt by over one trillion-plus dollars. Jeffrey Zients, a deputy director at the Office of Management and Budget states that if the freeze is expected to result in more than five billion dollars in savings over the next two years that would only make a small dent in our debt. Jeffrey Zients also states that although the president does realize the impact this freeze is putting on these federal employees he is simply asking for a huge favor. “The president is clearly asking them to make a sacrifice and we believe it is the first of many difficult steps ahead” (Zients, Forbes.com). On November 29th President Obama made a statement which I’m sure is going to upset several. “Going forward we’re...
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