By Brai Odion-Esene

WASHINGTON (MNI) – President Obama Monday proposed a freeze on the
pay of civilian workers employed by the Federal government, pointing to
the need to tackle the growing deficit and make sacrifices at a time
when households around the country are also slashing their budgets.

However, the president made it clear that while deficit reduction
is a priority, it will not come at the expense of the ongoing, and still
fragile, economic recovery.

American is engaged in economic competition with the rest of the
world, Obama said in a statement delivered to the TV cameras and if it
is to come out ahead the country must ensure that it is not “dragged
down” by long-term debt in the future. He did not take any questions.

It is the responsibility of both major political parties, he
said, to get federal spending under control, and bring down a
deficit that have been growing for most of the last decade.

In addition to making the necessary cuts, Obama said growing the
U.S. economy will also be critical to bringing down the deficit.

Repeating a line used extensively by the administration officials,
especially in the face of steep austerity measures being implemented in
Europe, Obama said the U.S. “can’t afford to take any steps that might
derail our recovery or our efforts to put Americans back to work.”

“so we can’t put the brakes on too quickly,” he said.

However, the U.S. does need to correct its long-term fiscal course,
the president said, hence the creation of the bipartisan debt commission
which reports its recommendations — or its disagreements — to him
Wednesday. Obama said he hopes the commission’s proposals to reduce the
deficit, expected December 1st, “will spark a serious and long overdue
conversation in this town.”

Noting that he has worked, since the early days of his
administration, to eliminate wasteful spending and streamline
government, Obama said the “hard truth” is that getting the deficit
under control is going to require “some broad sacrifice,” one that must
be shared by Federal government employees.

This is why, Obama added, he is proposing a two-year pay freeze for
all civilian workers employed by the Federal government.

According to the White House, this two-year pay freeze will save $2
billion for the remainder of fiscal year 2011 which began last month,
$28 billion over the next five years, and more than $60 billion over the
next 10 years.

However, the pay freeze — while applicable to all civilian federal
employees, including those in various alternative pay plans and those
working at the Department of Defense — will not affect military
personnel.

“I did not reach this decision easily … but these are also times
where all of us are called on to make some sacrifices,” Obama said,
adding, “going forward we are going to have to make some additional very
tough decisions that this town has put off for a very long time.”

The president said his hope is that starting today, both parties
can begin “a bipartisan conversation” about the country’s future, with
cooperation necessary.

There has been constant speculation that the White House is willing
to give some ground in negotiations over the future of the Bush-era tax
cuts, and Obama gave a further indication of this. “We are going to have
to budge on some deeply held positions, and compromise for the good of
the country,” he said.

The goal of both side must be the same, Obama concluded, “growing
this economy, putting people back to work.”

** Market News International Washington Bureau: 202-371-2121 **

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