Trump Regime

Trump is Straight Up Cutting Wages Now

JM Ashby
Written by JM Ashby

The GOP's tax cuts for corporations and the rich have not led to higher wages. In fact, wages are actually down 0.2 percent across the board according to the Labor Department and they're about to take another hit.

Trump announced this morning that he plans to unilaterally cancel a pay raise for civilian employees of the federal government scheduled to take effect in January.

From CNBC:

In doing away with the 2.1 percent across-the-board pay increase that was scheduled to take effect in January, Trump said he was working "put our Nation on a fiscally sustainable course."

Scrapping the raises will save more than $25 billion, Trump said.

"I have determined that for 2019, both across the board pay increases and locality pay increases will be set at zero," the president said in a letter addressed to Speaker of the House Paul Ryan, R-WI, and released by the White House. "These alternative pay plan decisions will not materially affect our ability to attract and retain a well qualified Federal workforce."

$25 billion is a lot of money, but it's also inconsequential compared to the cost of the GOP's $1.5 trillion tax cut. The federal deficit is projected to surpass $1 trillion in fiscal year 2019 which begins on October 1st. We're going to cross the trillion dollar threshold months before any civilian employee of the government was scheduled to receive a pay raise.

Unlike corporations and rich shareholders afforded a windfall by the GOP's tax cuts, employees of the federal government are mostly middle class people who will immediately spend their higher wages and inject it directly back into the economy.

The rich aren't doing that. Business investment is stagnant and private sector wages are down. They're going to sit on their pile of money, just like they always do, and when the next recession hits they're going to buy every piece of property they can get their hands on.

Meanwhile, Trump is about to spend $12 billion on a bailout for the agricultural industry because of a trade war that he initiated.

  • katanahamon

    In 2015..

    “Donald Trump doubles down: ‘Our wages are too high’
    Colin Campbell Nov. 11, 2015, 11:15 AM”

    We all knew what we were getting..we tried, and tried, and tried to warn of the irresponsibility of electing a failed, bankrupted ex reality show goon….

  • Aynwrong

    Yet there’s always money for tax cuts for the asshole Republican donor class.

    Are we Great Again yet?

  • I’m a federal worker and if I didn’t already hate this m*therf*cker, this certainly would make me.

    A trillion dollar tax cut for the rich and he cuts my wages (because even if my wages stay the same, inflation is chipping away at them). And the reason he gives is even a disingenuous lie.

    • katanahamon

      Not just basic inflation, his stupid tariffs and other policies that force things like health insurance to rise disproportionately…sick of dummies voting against our best interests…

  • Georgie

    Jeez what dick.

  • muselet

    Given Donald Trump’s history as an employer, this is hardly surprising: Mar-a-Lago’s request for visas for foreign workers stated the pay rate would be lower for the 2018 winter season than it was for 2017.

    “These alternative pay plan decisions will not materially affect our ability to attract and retain a well qualified Federal workforce.”

    Sure, because who wouldn’t want to work for the federal government if their purchasing power went down by the rate of inflation every year? I’m sure qualified applicants will be lining up around the block for jobs. (Also, “materially” is doing a lot of heavy lifting in that sentence.)

    Rebuilding the federal workforce will be a decades-long endeavor.

    –alopecia

  • jimtowndem

    is this supposed to make fed employees love him