Lower Pay for Higher Discipline

From Rick-

I have it! I finally have it! Ever since I separated from the Air Force last fall I’ve been threatening to write a book. At first I thought I would write a pseudo memoir about my time at the Academy of Military Science. I even have a blog with some of the stories I thought I would share. Then I realized no one really cares what a washed up Airmen thinks. After that, I was sure I figured out the million dollar idea. I could write about my transition from the military and let corporate America know what they are missing by not lining up to hire veterans. I even went so far as to jot down some ideas about that one. But, nah. I couldn’t figure out how not to sound like I was just whining. But now, holy smokes, do I have the right concept. It is going to revolutionize American industries everywhere. What is it, you ask? Here goes- increase discipline through lower pay.

I mean, is that brilliant or what? Can’t you just see me going around on the public speaking circuit preaching the virtues of cutting pay as a way to increase discipline? Hey, CEO, you can cut your bottom line and reduce discipline issues. Every year, you could cut pay by the current inflation rate. What? You don’t think it will work? You think I’m an idiot? Maybe, but not for this idea. You know why? Because it’s not mine. It’s the brain child of Sergeant Major of the Marine Corps Michael Barrett.

The senior enlisted Marine member told Congress that lower pay might actually be beneficial to the service. He said, “I truly believe it will raise discipline. You’ll have better spending habits. You won’t be so wasteful.” Every time I read it, it sounds more ridiculous. Wasteful? You know what I wasted my time on when I was an E-4? Worrying about how I was going to feed, clothe, and care for my two young children on a salary that qualified me for food stamps. My spending habit was being short of money to spend. Most of my friends were in the same boat. It did nothing to make us more disciplined. It made us desperate. And that led to people abusing government credit cards, fudging travel vouchers, etc. It didn’t work then and it won’t work now.

You know who will benefit from cutting pay? The pariahs that set up shop outside the gates of every military base. They prey on young military members and suck them into payday loans or outrageous interest rates on auto loans. Eighteen to 22-year olds who have no financial or budget training are easy targets. I’ve been there and done that. It’s so easy to get in over your head. Then you miss a payment and the predators start calling your supervisor. When that happens, the only discipline you are going to increase is the kind done by the First Sergeant. And nobody wants that.

From Mike- 

So, Sgt Maj of the Marine Corps Barrett annoyed some people when he gave his professional opinion on pay increases when testifying to Congress? It seems unlikely that he is an idiot, as some headlines suggest – could he have a plan?

Congressional Competence

Each branch of the service is in the unenviable position of facing expectations from politicians with little military or business acumen. The civilian masters of the military are as clueless about budgets as they are about strategy. Those few legislators who do have private sector experience are often lawyers, where a starting pay of $150/hr destroys fiscal perspective. And how do I know they are strategically stunted? They telegraph exit timelines to the enemy – a bit like the local police department publishing where speed traps are planned, complete with dates and times.  Congress is clueless about how to spend, how to plan, and how to execute ... but they still have the checkbook.

Public Perceptions

During the Clinton years, the economy roared, but no one stopped to ask about the paltry pay raises for the military. We fell far behind in those years … but once the economy tanked, suddenly the military looked rich. As it turns out, where you stand really does depend on where you sit – when the investment portfolios of our civilian brothers took a hit, those of us in uniform (most of whom have never had a portfolio) appeared to be rich. Thus, the defense budget will shrink by $75B in the next two years. Barrett likely knows the legislators are gunning for personnel costs, and there's little he can say to dissuade them. No matter what happens to military pay, there will always be men and women in uniform willing to stand in the gap. Why not tell Congress what they want to hear, while making the other services look like pansies?

Barrett's Gambit

What Barrett did was agree with the foregone conclusion of legislators, while defending the equipment, training, and materials the Marines need. The other services tried to defend pay raises, equipment, materials, benefits, etc. … but to highlight everything is to highlight nothing.    Sun Tzu told us to concede what we are sure to lose, rather than wasting resources that could be better spent toward our military objective. The other services are playing checkers, Barrett is playing chess.

Speaking of impending losses, any idea what Hagel has prescribed in terms of troop strength? The Marines will drop from 190k to 182k by FY15, and must dedicate nearly 1000 more to embassy security. Guess who is most likely to leave the Corps voluntarily? Those dedicated Marines who are good at their jobs, and serve for a sense of duty & honor? Those who feel under-appreciated because their wallet isn't as fat as the private sector's? Yeah – the latter – and Barrett's annual review will say he single-handedly restored the discipline of the entire corps by encouraging the grumblers to leave.

All that said, military pay sucks for the first 4-5 years – some view it as motivation to climb the ranks. Our military pensions are also under attack, and I have a real problem with a breach of contract after I gave my 20s, 30s, and part of my 40s to my country. We gave our youth, and walked away with nothing but a promise for monthly compensation. To change that contract is unconscionable; that the change will come from lawmakers who are guaranteed a pension after 5 years of service with a starting pay of 6 figures is beyond belief. Still, I am proud of my service, and respect Barrett's decision to forego popularity as a leader and build a defensible position for the resources his troops need when they face an adversary abroad.

Hey, Congress … Check.

Mike