Does the U.S. Congress deserve a pay raise?


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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