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Obama Grants Pay Increase For Members Of Congress, Federal Workers In Executive Order

Tyler Durden's picture


When it comes to US austerity, a very sensitive topic as framed best by the "spending cuts" portion in the Fiscal Cliff debate, the ideas range from the surreal to the outright idiotic: as an example in the most recent Obama proposal spending would be "reduced" in the form of $290 billion in interest savings - not an actual spending reduction, but a hope and a prayer that because rates are lower, the government will "save" money with rates continuing to be lower (something which immediately causes a #Ref! explosion for anyone not using government math), $130 billion in savings that would come from once again rejiggering the definition of 'inflation', as well as "savings" from not funding extra defense spending because the US is not engaged in a pro forma war. Like we said: surreal and idiotic, or in other words, no actual real cuts to spending. Yet even as the nation is gripped by the melodrama of fake spending cuts offset by the threat to tax millionaires more (all of whom will merely find more creative and effective ways to hide their wealth and income offshore), spending increases are all too real, such as last night's order by Obama's just issued an executive order to end the pay freeze for federal employees, which is the equivalent of a wage increase. A truly deserved rise in wages for a job well done by the most dysfunctional Congress America has ever seen.

Among the workers to receive a pay increase is Vice President Job Biden. As the Weekly Standard reports, citing disclosure forms, Biden made $225,521 last year and after the pay increase, he'll now make $231,900 per year. More: "Members of Congress, from the House and Senate, also will receive a little bump, as their annual salary will go from $174,000 to 174,900. Leadership in Congress, including the speaker of the House, will likewise get an increase." Somehow we have the feeling that Congress will be quite united behind this "order", just as the Senate was very united yesterday in its decision to continue spying on America's citizens.

From the Weekly Standard:

Here's the list of new wages, as attached to President Obama's executive order:

"A new executive order has been issued providing for a new pay schedule beginning 'on the first day of the first applicable pay period beginning after March 27, 2013,'" reports "The pay raise will generally be about 1/2 of 1%."

Jeryl Bier points to an example of the pay increase for average government executives:

"Not much of an increase, but an increase all the same," Bier notes.

And the timing isn't great either: Just as President Obama and Congress try to avert going over the "fiscal cliff," he doles out pay increases to federal workers.

UPDATE: According to a senior Republican congressional aide who has reviewed the executive order and consulted with the Congressional Budget Office, Obama's pay raise will cost $11 billion. "The CBO told us that the President’s pay raise for federal workers will cost $11 billion over ten years," says the aide.

The aide explains, "On the cost-estimate, CBO says the (discretionary) cost of the .5% pay-hike the President is calling for in the Exec Order – relative to a freeze – is about $500m in FY 2013 and $11 billion over the ten years from FY 13 - FY 22.  The reason why the FY ’13 savings is only $500 million is because the pay hike as proposed by the President’s Exec Order would not go into effect until April 1st, 2013 - when the current CR expires. So it only covers half the fiscal year. The annualized cost of the pay hike is about $1 billion/year."


Obama Executive Order


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Sat, 12/29/2012 - 17:14 | 3105229 Rick Blaine
Rick Blaine's picture


Just wow.

It'll be interesting to see how the MSM defends this one.

"...b-b-b-but it's for the children!  Think of the children!!!" 

Sat, 12/29/2012 - 17:59 | 3105322's picture

Obama to Federal workers: "I want you to get that pay raise. It's part of your work, the thing that keeps you going. It doesn't take much to see that the concerns of a few million taxpayers don't amount to a hill of beans in this crazy world. Someday you'll understand that."

Sun, 12/30/2012 - 01:04 | 3106033 Rick Blaine
Rick Blaine's picture



Sat, 12/29/2012 - 17:14 | 3105230 Omen IV
Omen IV's picture


Sat, 12/29/2012 - 19:21 | 3105475 LateToTheTable
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- George Orwell, Animal Farm, Ch. 10

Sat, 12/29/2012 - 17:15 | 3105234 kevinearick
kevinearick's picture

fast and furious, get what you can

Sat, 12/29/2012 - 17:16 | 3105235 Everybodys All ...
Everybodys All American's picture

All government spending is supposed to originate in the House. Or not if you're a dictator who can ignore the constitution and no one will call him on it. No one. Well except me.

Sat, 12/29/2012 - 17:27 | 3105266 blunderdog
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It's just like the expiry of the tax-cuts.  The House already put in place a system by which Federal salaries increase automatically over time.  A pay-freeze which had been implemented via Executive order was in effect.  Eliminating that pay-freeze doesn't "count" as "new spending."

The interesting thing is that the House had repeatedly voted to extend that pay freeze.  This is basically a demonstration of how completely ineffectual Congress has become.

They literally cannot do ANYTHING.

Sat, 12/29/2012 - 17:16 | 3105236 doomandbloom
doomandbloom's picture

They hate us for our freedoms...

Sat, 12/29/2012 - 17:22 | 3105249 Waterfallsparkles
Waterfallsparkles's picture

Sounds like a bribe to me.

I thought that Congress was the one responsible for spending.

These Executive Orders are getting out of hand.

Sat, 12/29/2012 - 17:27 | 3105267 HD
HD's picture

When running a police state you gotta pay the jack booted thugs well or they turn on you...

Sat, 12/29/2012 - 17:43 | 3105292 devo
devo's picture

Too much talk, not enough action.

Writing that they're crooks on ZH doesn't do much.

Sat, 12/29/2012 - 19:13 | 3105461 Vendetta
Vendetta's picture

we get to sing to the choir

Sat, 12/29/2012 - 23:42 | 3105945 willwork4food
willwork4food's picture

I prefer to call it edification.

Sat, 12/29/2012 - 17:50 | 3105307 Joe A
Joe A's picture

Well, now you know what these fiscal clif negotations were really all about.

Sat, 12/29/2012 - 18:10 | 3105337 ebworthen
ebworthen's picture

$175,000/year for CONgress is only $130,000 more than the median household income/year!

Such hard work bankrupting the nation and raping the constitution!

The poor dears deserve a raise!

Sat, 12/29/2012 - 18:11 | 3105345 Papasmurf
Papasmurf's picture

$175K is net, not including profits from trading cattle futures.

Sat, 12/29/2012 - 18:10 | 3105341 Oldballplayer
Oldballplayer's picture

My net is down about 10% from last year. Glad I could help with my meager tax contribution.


Sat, 12/29/2012 - 18:12 | 3105347 horseman
horseman's picture

Now I see why O is using 250k as the cutoff, just above what they all make on payroll.  Gives creedence to those who say they will leave CG and Div alone.


Sat, 12/29/2012 - 18:14 | 3105352 garcam123
garcam123's picture

I'm not really a bottom feeder, but I do most of my own shopping and cooking.

I have been known to buy a box of macronni and cheese and, as I recall that the price of just old standard mac & cheese in Florida was around 3 for a dollar.  Yesterday I was in a store in California on the coast and saw one a rack of them in the Foods4Less, not exactly a Trader Joes and the price was $.95 on sale each!


This is an indicator of what is being done to Americans by the banks and the government. Obama raising wages for his cronies and the Fed dumping 80 Billion Dollars a month into the exonomy just continues to make our dollars worth less and less.  They don't feel the hits because they are overpaid and have no concept of want.


I wonder when the riots will start here over safety net cuts and hunger.  If they try and take our guns......

Sat, 12/29/2012 - 21:15 | 3105698 JuicedGamma
JuicedGamma's picture

But, but,  CPI numbers have inflation down...



Consumer Price Index - November 2012 The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.3 .... The all items index increased 1.8 percent over the last 12 months, a decline from the 2.2 percent figure in October. ...


Sat, 12/29/2012 - 18:15 | 3105353 Hannibal
Hannibal's picture


Sat, 12/29/2012 - 18:17 | 3105356 HurricaneMoney
HurricaneMoney's picture


The sheeple are surprised by this. Obama Won - To his supporters go the rewards. I hope he gives all his base a big pay increase every month.

To all those in the private sector who voted for Obama - Suck it up! Government is where its at, Private sector jobs are so yesterday, get with the


Sat, 12/29/2012 - 21:30 | 3105722 tenpanhandle
tenpanhandle's picture

but all his base are belong to us.

Sat, 12/29/2012 - 18:17 | 3105358 JR
JR's picture

The President of the United Sates has become a perfect poster boy for the welfare state; he acts and spends just like a Cadillac welfare recipient.

It’s difficult to explain the aggressive growth in the public sector and the over-the-top administration support for it without terming it mob rule. And this doesn’t even include the public sector's retirement-to-grave benefits.

All this while the living standard of the private sector continues to sink.

Sat, 12/29/2012 - 18:33 | 3105399 max2205
max2205's picture

The pimp always gets the first cut

Sat, 12/29/2012 - 18:20 | 3105370 Pinky
Pinky's picture

Really? Fed worker here (DoD) and I read it on Zero Hedge first!

If it makes y'all feel anybetter, the wage freeze was an effective wage reduction since the cost of Federal health benefits goes up every year, so during the last four years I (like many of you) watched my paycheck go down every January due to the increased cost of health care.  I tried switching to a cheaper plan and got kicked in the ass for it: One unfortunate hospital visit and resulting followup negated my savings tenfold. $13K out of pocket, man that plan sucked.

Even now my paycheck won't go "up:"  Since we're going over the "cliff" our increased taxes will more than eat up that one half of one percent of a wage increase, which I see doesn't kick in till 3rd quarter 2013. Paychecks are still going down for Federal workers, in other words, just less quickly than before.

I never complained about the freeze:  I figure things are as bad or worse in the private sector and am happy to have a job at all.

Sat, 12/29/2012 - 18:29 | 3105392 Ganja Jane
Ganja Jane's picture

I'm buying stock in the pitchfork and torch companies.

Sat, 12/29/2012 - 18:51 | 3105424 Atomizer
Atomizer's picture

Don't forget Remote Car Starter companies. :P

Sat, 12/29/2012 - 18:40 | 3105410 phoolish
phoolish's picture

We're not even pretending it's not a dictatorship anymore.


(Note; just because the sitting Dictator may or may not leave and be replaced by another in 4 or 8 years doesn't mean it's not a dictatorship - see China).



Sat, 12/29/2012 - 19:21 | 3105438 dolph9
dolph9's picture

Just keep on punching those alarm clocks, Americans!

Sat, 12/29/2012 - 19:05 | 3105451 VonManstein
VonManstein's picture

The political class has no shame. This is Fucking sickening.

Obama is clearly paying these "people" off. This is effective bribary here. Some extremely unpopular politcal moves are coming and the dear leader has to litereally buy as much support as he can. Fucking sick bastard steals and loots for his uber rich employers and the pathetic small minded on the payroll are happy to follow any orders for a few thousand peices of paper.

The screw is being tightened

Sat, 12/29/2012 - 19:15 | 3105464 I am Jobe
I am Jobe's picture

WTF. U must be fucking shitting me.

Sat, 12/29/2012 - 21:35 | 3105726 tenpanhandle
tenpanhandle's picture

They are definately fucking you.  They wouldn't be shitting you because they need shits like us.

Sat, 12/29/2012 - 19:19 | 3105472 q99x2
q99x2's picture

Probably got paid a bonus for signing it over the Holidays.

Sat, 12/29/2012 - 19:24 | 3105483 I am Jobe
I am Jobe's picture

and people voted for this shit. Blame the inbred fucks of Amerika.

Sat, 12/29/2012 - 22:00 | 3105768 e_goldstein
e_goldstein's picture

and/or the diebold corporation.

Sat, 12/29/2012 - 19:25 | 3105485 Fix It Again Timmy
Fix It Again Timmy's picture

Actually, each member of CONgress should be paid minimum wage, then carpet bomb K Street, then notify Congress that their minimum wage will be supplemented by an incentive plan that would pay according to legislation that is 100% compatible with the Constitution.  Since this will never happen, we will continue to be plagued by garbage legislation written by lobbyists and passed by 535 useless twits...

Sat, 12/29/2012 - 19:37 | 3105501 mt paul
mt paul's picture

it's all good

as long as they don't tax seals

Sat, 12/29/2012 - 19:40 | 3105503 Cable Guy
Cable Guy's picture

Where I work they would actually not pay you....not just your raise.....your commissions or salary....until you did yuor job.  People are coin operated.  Maybe we should get a law passed that says "you can't get paid mr/mrs sentator or congressperson unless a balanced budget has been passed...

Sat, 12/29/2012 - 19:52 | 3105523 Tom Green Swedish
Tom Green Swedish's picture

The only piece of the Constituion these assclowns care about.

Sat, 12/29/2012 - 20:15 | 3105571 Bansters-in-my-...
Bansters-in-my- feces's picture

"290 Billion in interest savings"...


Who is getting all this interest,and is it legal.???

Don't sound it.


And the Rothschilds smile   ;0)

Sat, 12/29/2012 - 20:17 | 3105572 Gromit
Gromit's picture

Kinda interesting how they picked 250K as the figure for high earners who must pay more tax....

Sat, 12/29/2012 - 21:07 | 3105682 ziggy59
ziggy59's picture

Funny how the leaders that be, utilize the Constitution when convenient, no?

Sat, 12/29/2012 - 21:51 | 3105752 icanhasbailout
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No law, varying the compensation for the services of the Senators and Representatives, shall take effect, until an election of Representatives shall have intervened.


Obama's just going through the Constitution looking for new shit to violate just to extend the middle finger to us all.


Sat, 12/29/2012 - 22:15 | 3105787 MyBrothersKeeper
MyBrothersKeeper's picture

Government/public sector employees/contractors have to make more.  If they do not than who is going to do the spending that makes up 70% of US GDP? Killing the private sector slowly is just part of the plan.

Sat, 12/29/2012 - 22:39 | 3105834 Clowns on Acid
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Forward Chavez !

Sun, 12/30/2012 - 06:35 | 3106159 lakecity55
lakecity55's picture

They're gonna need an NFG in Caracas soon.

Somebody chloroform this tool and ship him there FED-X overnight.

Everyone will be happy.

And, hey. look on the Bright Side: that's less money for holler points to kill us with!

Sun, 12/30/2012 - 21:17 | 3107856 Tourist2008
Tourist2008's picture

With difficulty, Chavez is almost certainly dead.

Sat, 12/29/2012 - 23:28 | 3105838 newengland
newengland's picture

Swines, traitors, money loving whores. Sentient beings thought this would happen, but there was a chance that it wouldn't. Now it has happened. No more benefit of the doubt for CONgress.

They have the audactity to wage endless war, take away Constitutional liberties, spy on everyone, kill anyone, offer no genuine security to anyone, see masses on record food stamps and destitute - yet they always make time to vote themselves more inflation linked pay, perks and indexed linked pensions.

They are filth.

No federal employee should earn $100K unless their body is on the line leading troops who fight for our right to choose, and it is a pity that people vote for war, but it is their right to choose.

The rest are bureaucrats, taking tax money. They are not productive, and do not make jobs for anyone but themselves. They are administrators of public funds, and should be paid as administrators, nothing more.

Sun, 12/30/2012 - 00:04 | 3105954 Element
Element's picture



"It's good to be King."


Obama's just issued an executive order to end the pay freeze for federal employees, which is the equivalent of a wage increase


uh-huh! .. who's you're sugar-plow now? ... that's right sweet thang ... let barry plow your corn field ... 

Sat, 12/29/2012 - 23:58 | 3105962 Quinvarius
Quinvarius's picture

Full on Mugabe.

Sun, 12/30/2012 - 00:05 | 3105972 Element
Element's picture

with a dash of Idi Amin

Sun, 12/30/2012 - 03:10 | 3106105 kedi
kedi's picture

The poverty line for a family of 4 is $23,050 income? A few of those raises are almost half that.

Sun, 12/30/2012 - 06:30 | 3106158 lakecity55
lakecity55's picture

Man, that guy really loves to spread his ass cheeks over the US every day and rub it in.

Sun, 12/30/2012 - 09:26 | 3106221 shovelhead
shovelhead's picture

Welcome to Cafe' Obama...

Where they serve you dick and tell you to enjoy your lunch.

Where is alQaida when you really need em?


Oh yeah, they already have a Presidential jobs program...

Sun, 12/30/2012 - 09:38 | 3106235 dcb
dcb's picture

11 billion to workers over 10 years why that's the cost of about 7 raptors, or 1 b2 bomber.  I do think Obama should not have done it, it shows really bad faith at this time. I'd be more interested in more data about how inflation is now going to be calculated

Sun, 12/30/2012 - 09:50 | 3106247 Fix It Again Timmy
Fix It Again Timmy's picture

A glass of pond scum has more intelligence than the entire city of Washington, D.C.

Sun, 12/30/2012 - 11:07 | 3106347 drdj4425
drdj4425's picture

I think a fiscal cliff deal is made.  Why else would Obama have granted pay increases to those uncooperative members of Congress? This is the final gift to Congress to go along with a deal.

Sun, 12/30/2012 - 12:17 | 3106501 roadhazard
roadhazard's picture

At least the repubican voting employees will be rejecting there raise to show they are for less spending like the repubican mantra they spew.

Sun, 12/30/2012 - 13:11 | 3106609 Mad Muppet
Mad Muppet's picture

"Four legs good, two legs better!"Four legs good, two legs better!"Four legs good, two legs better!"Four legs good, two legs better!"Four legs good, two legs better!"Four legs good, two legs better!"Four legs good, two legs better!"Four legs good, two legs better!"Four legs good, two legs better!"Four legs good, two legs better!"Four legs good, two legs better!"Four legs good, two legs better!



You absolutely fucking nailed it.

Sun, 12/30/2012 - 14:16 | 3106789 jbvtme
jbvtme's picture

but the bad news is WE elect these chumps to tell us what to do...

Sun, 12/30/2012 - 14:47 | 3106870 Jake88
Jake88's picture

Just when you thought things couldn't possibly be more insane.

Sun, 12/30/2012 - 14:59 | 3106892 Joebloinvestor
Joebloinvestor's picture

I am waiting (with baited breath) for the first asshole to refuse to take the raise as "undeserved".

Sun, 12/30/2012 - 20:07 | 3107666 toomanyfakecons...
toomanyfakeconservatives's picture

Replace them all with out-of-work WalMart greeters!

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