I think President Obama is brilliant, and we need a smart confident leader, so I am 100% behind him. I can only hope that this limitation curtails government spending, because the best businesspeople might not take the money.
Government spending as a % of GNP has grown steadily from 7% to 40% over the last century. In the same period, GNP growth has shrunk from an average of about 8% to about 2% (and now negative). These two numbers are highly correlated.
I think government pay increases should be tied to GNP growth (not CPI). They would then all have the right incentives.
The "slippery slope" is that Congress is not cognizant of what all the "spend and control" politics does to the business world. It creates a culture of need rather than a culture of opportunity and attracts the worst, most needy businesses. It makes the best businesses, who thrive in a culture of opportunity leave our country for Singapore or China or wherever. Governments are in competition for the great minds and the capital of the world. If the US Government doesn't perform, the best of us will leave for the free-market countries.