Saturday, 22 September 2012

Sequestration

This week....I started to notice more people asking questions of management over the implications of sequestration.  I will admit....that probably over fifty percent of the GS worker force in DC.....has not paid any attention to the episode and has no idea what happens on 2 January.

Commentary from yesterday from several political figures indicate that they will likely whip into DC the week after the election in November, and simply put a 120-day delay onto this mess....allowing for more meetings in January and February.  They haven't yet said how they'd come to some real agreement on the budget....other than delaying the mess on 2 January.

How does it end?  My guess is that a mandated trimming of manpower will occur, with roughly three percent of the civilian work-force forced to retire or leave by the end of 2013, and repeat again in 2014 and 2015.

There's also a hint of furlough episodes coming down.  It might be....that you as a government worker....have to take an unpaid day off every month for all of 2013.  Maybe two unpaid days off.

New taxes on the public?  Maybe, but I wouldn't expect this to amount to very much.  Forget about the value of the new revenue....it'd simply go into another pot to pay the Chinese folks for being so kind to loan us a vast amount of money that we'd typically never be able to pay off.  So the extra taxes that your company pays.....will come out of some pot that they would have used to pay out bonuses to you, fix up the building, or take care of health care costs.  Only the naive believe otherwise.

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