in

US troops will get pay CUT when factoring in inflation despite Biden raising wages, ex-general says

U.S. troops will get a pay CUT when factoring in inflation and the poorest could be forced to turn to food banks after Biden signed the National Defense Authorization Act, former Army general says

  • Service members will be in a worse financial situation despite a 2.7% pay raise
  • Former Major General John Ferrari says it won’t keep pace with soaring inflation
  • The prices of consumer goods rose an average 6.8% year-over in November
  • Military wages are generally set based off the last year’s Employment Cost Index 










Former Army Major General John Ferrari warned that inflation could have particularly harsh consequences on low-income troops

American service members will likely be in a worse financial situation next year because of soaring inflation, despite President Joe Biden authorizing a Pentagon-wide press increase earlier this week, a former Army Major General said on Wednesday.

John G. Ferrari, now a senior fellow at the American Enterprise Institute, told Fox that ‘for Troops at the lowest part of the pay scale, the cost of gas and food may drive some deeper into debt, or they may rely more on food banks.’ 

On Monday Biden signed the National Defense Authorization Act, an annual must-pass piece of legislation that sets the next year’s Pentagon budget. 

This year’s spending bill included a 2.7 percent pay increase across both military and civilian Defense Department employees. 

But Ferrari feared it may not negate the rising prices at the pump and the grocery store. 

‘The situation is serious now because we have not seen this level of inflation in decades,’ he said.

Earlier this month the Labor Department released data that inflation had risen 6.8 percent in November from the year prior, a 40-year record high. 

Soaring prices are hitting Americans hard in essential categories, with groceries overall up 6.2 percent in the 12-month window ending in November. Steak jumped 25.6 percent, bread rose 4 percent and fresh fruit prices were up 5.8 percent.

The consumer price index hit a 39-year high of 6.8% on an annual basis in November

The consumer price index hit a 39-year high of 6.8% on an annual basis in November

Regular unleaded gasoline soared 60.1 percent from 2020, and new cars and truck were 11.1 percent more expensive. The cost of used cars rose 31.4 percent. 

Excluding the volatile food and energy components, the CPI rose 0.5 percent last month after gaining 0.6 percent in October. The so-called core CPI jumped 4.9 percent on a year-on-year basis after increasing 4.6 percent in October. 

It’s not clear to what extent inflation projections were factored into the latest defense budget, but Ferrari believes Biden’s previously stated goal for a 2023 budget even smaller than the one that recently passed won’t do enough.

‘The president will need to increase 2023 defense spending from his previously announced level of $756B to about $806B to account for inflation overall or else readiness of the force will suffer,’ the former general said. 

Biden signed a 2.7% pay increase for Defense Department employees into law

Biden signed a 2.7% pay increase for Defense Department employees into law

Military wages are generally set based off the last year’s Employment Cost Index, which tracks yearly salaries against private sector rates. 

Unless specifically mandated otherwise by Congress, that means every year’s military pay increase is tied back by the previous year’s economy — and that this pay raise didn’t account for the soaring prices seen under President Joe Biden.

Their pay raise will go into effect just weeks after the Defense Department announced that service members in 15 metropolitan areas and 21 non-metropolitan counties will have their cost-of-living allowance cut off at the start of 2022.

Roughly 48,000 troops are set to lose their Continental United States Cost-of-Living Allowance, including military members in Washington, DC, according to Stars and Stripes.

The Pentagon will still pay about $8.5 million to roughly 6,000 service members living in six metro areas and 20 non-metropolitan counties within the continental United States in 2022.

Advertisement



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

The jury who undertook the epic job of deciding Ghislaine Maxwell’s fate

Suzan Mutesi: Socialite’s wardrobe malfunction at The Matrix Resurrections premiere