The United States is grappling with its most serious economic problem in generations -- a protracted recession that could be deep -- and as usual a Congressional pay raise occurs at an inconvenient time. Each member of the U.S. Congress is set to get an automatic, cost-of-living pay raise of about $4,700, or about 2.8%, according to the Council for Citizens Against Government Waste.
The current average salary for members of Congress, $169,300, would rise to about $174,000 in 2009.
Lawmakers have received automatic pay raises since 1989, but have rejected pay raises six times since then, most recently in 2007, FOXNews.com reported.
BloggingStocks asked two economists, David H. Wang and Peter Dawson, who were both making their holiday gift lists and checking them twice, to evaluate the appropriateness of the pay raise. Since Dawson has had a relatively good year consulting, BloggingStocks assigned him the task of defending the raise.
"The argument for it is that members of Congress have to maintain two residences, one in the home district, and one in Washington, D.C., where, as you know, the cost of living is not cheap," Dawson said. "When you add the cost of living, plus travel, plus the salaries many could earn in the private sector if they gave up public service, $170,000 or $180,000 per year is a reasonable salary, given the demands of the job."
Wang was unmoved. "Absolutely not. Congress should forgo the pay raise. We are in an era of belt-tightening all over, with layoffs, massive disruption of businesses, and people losing their homes. Congress should not accept this raise," Wang said. "Symbolically, it projects the wrong image, the way the auto manufacturer CEOs flying to D.C. in corporate jets did. Besides, through other benefits, Congressional officials are making enough money."
Fiscal Policy/Political Analysis: On a cost-of-living basis, one could make a case for the raise. Still, the view from here argues that in difficult economic times, with so many employees losing jobs, now is not the right time for Congress to receive a pay raise. It would be better if the entire pay raise were directed to some worthy charity in the D.C. area, and there are dozens of worthy organizations.
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Reader Comments (Page 1 of 3)
12-22-2008 @ 4:57PM
BHarrison said...
Not just "NO" . . . but "HELL NO".
Congress has voted themselves four or five raises in the past . . . and THEY ARE the MAIN CULPRITS in this economic meltdow . . . and the SECRECY in the expenditure (passing out) of the first $350 BILLION in bailout monies.
This entire debacle would have teen TOTALLY AVOIDED IF Congress had simply required the Fed to require that ALL mortgage loan applicants be fully "pre-qualified" for the loans that they applied for, and 2) If Congress had implemented prudented and minimally reasonable "oversight and regulation" of the FIs and corporations via the Fed, the SEC, etc.
The vast MAJORITY of Congress, irrespective of party affiliation voted against implementing these regulations and oversights . . . and THEY SHOULD BE REMOVED FROM CONGRESS for their CORRUPTION of being unduely influenced by the special interest groups who have now wrecked our economy.
. . . . any ANY ONE in Congress who proposes a pay increase should be politically "stoned to death" to make an example of them; and the rest of them should be voted out of office.
12-22-2008 @ 5:09PM
keith said...
Job evaluation. the policies and practices that you approved have allowed things to get where they are. we have had to print (borrow) huge amounts of money , with the likliehood we will never make it back, to cover the debacles. it has caused a ride down a hill in which we cant determine how fast or how hard it will be when we get to the bottom. Job well done we will just put your increase in the bailaout money and print some more
12-22-2008 @ 5:24PM
Tami said...
Look it I am not biting on the maintaining 2 residence deal. Let them rent the other one out. Most of these politicians have more than enough money to maintain 2 homes. Let them stay at the YMCA/YWCA while in DC. It's called downsizing, just what the Poor/Middle Class American's have been doing for years. They will need learn how to budget their money just like the poor and the middle class. Maybe they don't eat 3 meals one day. Maybe they will have to visit a $DOLLAR STORE. It's about time they learn to live within their mean, just like everyone else.
12-22-2008 @ 5:36PM
jim said...
I say no with all the people loseing there jobs.where is the money going to come from???
12-22-2008 @ 5:41PM
Dean Pirovolos said...
After what Sen. Shelby and Sen. Corker did to the auto industry during the hearings I'm curious to see what happens. I'm sure they will turn the raise down because they make more than $78 an hour with benefits. (Yeah right). Alot of people will be watching.
12-22-2008 @ 5:58PM
Bearman said...
Interesting that in order to get a cost of living increase, the rest of the world still has to earn it through job evaluation. Top performers may get 3-5% so why does this congress think they deserve one.
http://bearmancartoons.wordpress.com/2008/12/21/bearman-cartoon-congressional-raises/
12-22-2008 @ 6:01PM
Dan Barnett said...
But remember that in today's economy even $176k is not a tremendous amount of money, given what corporate executives are making.
12-22-2008 @ 6:03PM
hazeleyes said...
They need to prove, (in writing to every American), why they want it, then obide by our opinion, just like other working Americans have to justify raises to their bosses.
12-22-2008 @ 6:06PM
DANA said...
170K FOR SITTING ON THEIR ASSES,,THE ECONOMY SUCKS NOW !!! HOW ABOUT TAKING A PAY CUT INSTEAD,,LIKE EVERYONE ELSE,,,THATS WHY AMERICA IS LOW ON OIL ..CAUSE ALL THE DIPSTICKS ARE IN WASHINGTON!!
12-22-2008 @ 6:14PM
david said...
Congress is why this country is in such a mess . They are paid too much now . Congress should get what they are worth - $ o . When are the American people going to stop this waste ? Congress takes care of Congress not America .
12-22-2008 @ 6:18PM
BOB said...
THEY HAVE A BIG SET OF BALLS ASKING FOR A PAY RAISE WHEN ALL OF THEM ARE PROBABLY MILLIONAIRES
12-22-2008 @ 6:26PM
DANA said...
LET THEM ALL GO LIVE IN THE FEMA TRAILERS THEY ARE STORING IN MISSISSIPPI ,THAT OUR TAX DOLLARS ARE BEING PISSED AWAY TO STORE THEM.,LIKE TO THE TUNE OF 28 MILLION A YEAR!!!!!!GOOD JOB CONGRESS!!!!!
12-22-2008 @ 6:40PM
eyedoc said...
Congress will vote themselves a pay raise whether we like it or not. They think very highly of themselves. Only a few are worth what they are paid. The rape of the tax payer goes on.
12-22-2008 @ 7:44PM
MrsJ said...
It is revolting that they would consider a raise now, when everyone else is being asked to tighten their belts. Disgusting.
12-22-2008 @ 7:45PM
finely tuned and polished said...
We all deserve a pay raise, don't we? We are in its entire factors are cutting back, are we not? Congress hire a cheaper limo driver, get a smaller car, dine at 4 star instead of 5 star restaurants, write off less on your so called end of year tax burdens,buy cheaper suits for both mens and ladies, hire cheaper tuck me in partners, and mostly take a pay cut.
12-22-2008 @ 8:09PM
Logan Anderson said...
Of course Congress does not deserve a pay raise! Congress has shown itself wholly inept; it deserves only a drastic cut in pay! The first thing one does with a sick patient is stop the bleeding. Checked a national debt counter or billboard lately? It keeps right on rolling, even in the face of financial meltdown, sinking our nation billions more in debt every single day. Fiscal insanity! Pay raises go to the deserving as a reward for a job well-done, hardly to an unfit Congress that has run us like Thelma and Louise right over the cliff.
12-22-2008 @ 8:11PM
Robert said...
I think that there are enough educated fiscally intellegent unemployed people in the u.s. it would make sense that all those in congress that vote for the pay raise should have to have their job posted at the unemployment office. any and all americans ( americans only ) should be able to apply for the job, a committee of average middle class people should reveiw the current congressmens ability to do the job along with their wage demands. Then look at the other qualified applicants and their wage demands, then pick the best person for the job as well as consider the annual costs. If the current congressman looses the job. He or she is out and furthermore would not continue to be paid for life as i believe that is how it is set up now. I bet we could jump start the economy with the savings
12-22-2008 @ 8:26PM
Ted said...
They deserve a pay raise once they start getting american jobs back. Most should be fired and outsource their jobs just like they have done with ours. That guy Corkey should be the first one to go. I would just like one to tell me why they deserve a raise.
12-22-2008 @ 9:11PM
Strzelecki said...
"hell no"
12-22-2008 @ 8:58PM
Will said...
Why not put them under Social Security and Medicare like the rest of Americans and take away their fat pensions. Then maybe they will try to fix them!