huw Posted May 16, 2008 Share Posted May 16, 2008 It was on the piece about UNISON calling for new pay deals following the grimmer-than-expected (by the mainstream!) inflationary outlook. She clearly said that Unison does not believe that public sector pay affects inflation. That being the case, a simple solution to our national dilemma presents itself: hand out massive pay awards to Unison workers. Not only will this avoid workplace-strife, but the resulting tax revenue will plug the many black holes in the government's balance sheet. Also trickle-down wealth will help bail out the rest of the economy. People might even use this money to pay down debt! More seriously, if the government were more prepared to admit how bleak things are going to get, at least they'd have a moral case for calling for restraint. As long as people remain in the endless-growth mindset, why should they meekly accept below-inflation pay awards? Admitting that the pie is going to get smaller is the first step toward persuading people to accept a smaller portion in turn. Quote Link to comment Share on other sites More sharing options...
Injin Posted May 16, 2008 Share Posted May 16, 2008 It was on the piece about UNISON calling for new pay deals following the grimmer-than-expected (by the mainstream!) inflationary outlook. She clearly said that Unison does not believe that public sector pay affects inflation.That being the case, a simple solution to our national dilemma presents itself: hand out massive pay awards to Unison workers. Not only will this avoid workplace-strife, but the resulting tax revenue will plug the many black holes in the government's balance sheet. Also trickle-down wealth will help bail out the rest of the economy. People might even use this money to pay down debt! More seriously, if the government were more prepared to admit how bleak things are going to get, at least they'd have a moral case for calling for restraint. As long as people remain in the endless-growth mindset, why should they meekly accept below-inflation pay awards? Admitting that the pie is going to get smaller is the first step toward persuading people to accept a smaller portion in turn. Awesome. Quote Link to comment Share on other sites More sharing options...
sikejsudjek Posted May 16, 2008 Share Posted May 16, 2008 (edited) The inflation is already there. Most of it caused by an asset bubble through irresponsible bank lending. Of course this doesn't show up as inflation because house prices aren't in the CPI calculation. Gordon and his chumps at the banks are guilty of this. The bail outs drop sterling, pushing up import prices. Yet more inflation. We need higher wages and less credit. This won't happen as it doesn't make banks' money. Edited May 16, 2008 by sikejsudjek Quote Link to comment Share on other sites More sharing options...
abharrisson Posted May 16, 2008 Share Posted May 16, 2008 It was on the piece about UNISON calling for new pay deals following the grimmer-than-expected (by the mainstream!) inflationary outlook. She clearly said that Unison does not believe that public sector pay affects inflation.That being the case, a simple solution to our national dilemma presents itself: hand out massive pay awards to Unison workers. Not only will this avoid workplace-strife, but the resulting tax revenue will plug the many black holes in the government's balance sheet. Also trickle-down wealth will help bail out the rest of the economy. People might even use this money to pay down debt! More seriously, if the government were more prepared to admit how bleak things are going to get, at least they'd have a moral case for calling for restraint. As long as people remain in the endless-growth mindset, why should they meekly accept below-inflation pay awards? Admitting that the pie is going to get smaller is the first step toward persuading people to accept a smaller portion in turn. Nothing some of these union guys say amazes me any more.... of course public sector pay will effect inflation... the more annoying bits are those about sharing a piece of the pie.... there is no pie but union leaders don't seem to get this... their employees are employed to do a job simple as that... if they don't like the rates being offerred then they can go off and find something else to do just like everyone else.... of course it rarely enters the debate just how HUGE a benefit most public sector workers get in pension rights... price that in and in my view most of them are massively overpaid, and in any event in anything other than the front line services there are far too many people on the public payroll all thanks to good old gordon.... cut 300,000 civil servants and I doubt they'd be missed, after all about three or four years ago there were probably that many fewer anyway... invest the savings in hospitals, schools, paying of the national debt, tax cuts whatever... it'd be sure to be a better use of state money than paying these guys (I wouldn't really blame those being employed rather those doing the employing)...... I am not sure I have seen much evidence of public sector non front line jobs being hard to fill, nor am I aware that people are leaving in their droves for better paid jobs elsewhere.... don't pay more until its clear that the country will suffer unless vacancies are filled would be my view... there are several hundred thousand to go and probably £bn's to be saved before that becomes anything like being the case. Quote Link to comment Share on other sites More sharing options...
Warwick-Watcher Posted May 16, 2008 Share Posted May 16, 2008 Nothing some of these union guys say amazes me any more.... of course public sector pay will effect inflation... the more annoying bits are those about sharing a piece of the pie.... there is no pie but union leaders don't seem to get this... their employees are employed to do a job simple as that... if they don't like the rates being offerred then they can go off and find something else to do just like everyone else.... of course it rarely enters the debate just how HUGE a benefit most public sector workers get in pension rights... price that in and in my view most of them are massively overpaid, and in any event in anything other than the front line services there are far too many people on the public payroll all thanks to good old gordon.... cut 300,000 civil servants and I doubt they'd be missed, after all about three or four years ago there were probably that many fewer anyway... invest the savings in hospitals, schools, paying of the national debt, tax cuts whatever... it'd be sure to be a better use of state money than paying these guys (I wouldn't really blame those being employed rather those doing the employing)...... I am not sure I have seen much evidence of public sector non front line jobs being hard to fill, nor am I aware that people are leaving in their droves for better paid jobs elsewhere.... don't pay more until its clear that the country will suffer unless vacancies are filled would be my view... there are several hundred thousand to go and probably £bn's to be saved before that becomes anything like being the case. Exactly - the number of people on the state payroll directly affects taxation. Let's have a cull of superfluous staff - LEA's and Strategic Heatlh Authorities plus 50% of all QUANGO staff for a start. See if anyone notices the loss of services? Quote Link to comment Share on other sites More sharing options...
Fed Up Posted May 16, 2008 Share Posted May 16, 2008 It was on the piece about UNISON calling for new pay deals following the grimmer-than-expected (by the mainstream!) inflationary outlook. She clearly said that Unison does not believe that public sector pay affects inflation. She clearly doesn't understand that the money will come from more government borrowing which will devalue Sterling further which will push up inflation. Hey presto! Of course the public sector could get pay rises above inflation if the BoE hiked interest rates to strengthen Sterling and bring inflation back down again. Quote Link to comment Share on other sites More sharing options...
mdman Posted May 16, 2008 Share Posted May 16, 2008 Wage inflation might help Broon in the short-term. Amazed he hasn't tried it. Maybe he will Quote Link to comment Share on other sites More sharing options...
Injin Posted May 16, 2008 Share Posted May 16, 2008 Wage inflation might help Broon in the short-term. Amazed he hasn't tried it. Maybe he will How? The government doesn't have any money, every penny is taken from the productive. Quote Link to comment Share on other sites More sharing options...
OLDFTB Posted May 16, 2008 Share Posted May 16, 2008 I am a public sector worker so i agree whole heartedly with Unison! Hey, does that make me a Vested Interest? I've never been a VI before! Quote Link to comment Share on other sites More sharing options...
Fed Up Posted May 16, 2008 Share Posted May 16, 2008 I am a public sector worker so i agree whole heartedly with Unison!Hey, does that make me a Vested Interest? I've never been a VI before! Good, tell Unison to tell Gordo that it wants interest rates to go up to keep inflation down, then you'll get your above inflation pay rise. Quote Link to comment Share on other sites More sharing options...
OLDFTB Posted May 16, 2008 Share Posted May 16, 2008 Good, tell Unison to tell Gordo that it wants interest rates to go up to keep inflation down, then you'll get your above inflation pay rise. Right, i will, i'll go do it now. I don't have a mortgage so it's no skin off my nose if Interest rates go up to 15%. Quote Link to comment Share on other sites More sharing options...
Guest absolutezero Posted May 16, 2008 Share Posted May 16, 2008 of course public sector pay will effect inflation... Not according to Mervyn King it doesn't.... Quote Link to comment Share on other sites More sharing options...
mdman Posted May 16, 2008 Share Posted May 16, 2008 How?The government doesn't have any money, every penny is taken from the productive. Same way he gave 22m a taxcut this week, by borrowing. I'm not thinking about what's best for the economy, rather the most politically expedient ruse to keep Broon in power. Wage inflation would help reduce the portion of income spent on necessities and mortgages, so disposable incomes go up so people feel wealthier (for a bit). The current political strategy he's pursuing (effective paycuts against a backdrop of unaffordable mortgages and soaring prices for necessities) is political suicide Quote Link to comment Share on other sites More sharing options...
huw Posted May 16, 2008 Author Share Posted May 16, 2008 The current political strategy he's pursuing (effective paycuts against a backdrop of unaffordable mortgages and soaring prices for necessities) is political suicide So is a wage-price spiral. He's snookered. Quote Link to comment Share on other sites More sharing options...
the primitive Posted May 16, 2008 Share Posted May 16, 2008 It was on the piece about UNISON calling for new pay deals following the grimmer-than-expected (by the mainstream!) inflationary outlook. She clearly said that Unison does not believe that public sector pay affects inflation. Clearly a load of b0ll0cks, but think, if you were a policeman who has been fobbed off with 1.9% instead of 2.5%, wouldn't you be just a teensy-weensy but annoyed that the government can blithely borrow £2.7bn in an afternoon, and claim it will not affect economic stability, yet say that the police deal was essential for said stability? How much is 0.6% of police payroll? I'd be amazed if it was even 5% of £2.7bn This government is beyond a joke. cretins. Quote Link to comment Share on other sites More sharing options...
IP Newcomer Posted May 16, 2008 Share Posted May 16, 2008 More seriously, if the government were more prepared to admit how bleak things are going to get, at least they'd have a moral case for calling for restraint. As long as people remain in the endless-growth mindset, why should they meekly accept below-inflation pay awards? Admitting that the pie is going to get smaller is the first step toward persuading people to accept a smaller portion in turn. I don't remember the 70s that well but I seem to remember that's what the Labour party tried then. Didn't work as the MPs (including Callaghan before he was PM) were torn between the national interest and their then paymasters. Quote Link to comment Share on other sites More sharing options...
Guest happy? Posted May 16, 2008 Share Posted May 16, 2008 Nothing some of these union guys say amazes me any more.... of course public sector pay will effect inflation... the more annoying bits are those about sharing a piece of the pie.... there is no pie but union leaders don't seem to get this... their employees are employed to do a job simple as that... if they don't like the rates being offerred then they can go off and find something else to do just like everyone else.... of course it rarely enters the debate just how HUGE a benefit most public sector workers get in pension rights... price that in and in my view most of them are massively overpaid, and in any event in anything other than the front line services there are far too many people on the public payroll all thanks to good old gordon.... cut 300,000 civil servants and I doubt they'd be missed, after all about three or four years ago there were probably that many fewer anyway... invest the savings in hospitals, schools, paying of the national debt, tax cuts whatever... it'd be sure to be a better use of state money than paying these guys (I wouldn't really blame those being employed rather those doing the employing)...... I am not sure I have seen much evidence of public sector non front line jobs being hard to fill, nor am I aware that people are leaving in their droves for better paid jobs elsewhere.... don't pay more until its clear that the country will suffer unless vacancies are filled would be my view... there are several hundred thousand to go and probably £bn's to be saved before that becomes anything like being the case. This is a parody rant from a Daily Mail reader which appeared in Private Eye last week. I'm staggered that anyone on this site fell for such a troll post. Quote Link to comment Share on other sites More sharing options...
stormymonday_2011 Posted May 16, 2008 Share Posted May 16, 2008 This is a parody rant from a Daily Mail reader which appeared in Private Eye last week. I'm staggered that anyone on this site fell for such a troll post. Indeed. The premise is also ********. Inflation is caused by too much money chasing too few goods, always has been and always will be. Wages are just a footnote. End of story Quote Link to comment Share on other sites More sharing options...
huw Posted May 16, 2008 Author Share Posted May 16, 2008 Clearly a load of b0ll0cks, but think, if you were a policeman who has been fobbed off with 1.9% instead of 2.5%, wouldn't you be just a teensy-weensy but annoyed that the government can blithely borrow £2.7bn in an afternoon, and claim it will not affect economic stability, yet say that the police deal was essential for said stability? How much is 0.6% of police payroll? I'd be amazed if it was even 5% of £2.7bn This government is beyond a joke. cretins. Agreed. And having demonstrated they would prefer to borrow to appease interest groups instead of taking political pain ... they can now expect other interest groups to cause them more political pain. More political pain for New Labour. Silver lining, eh? Quote Link to comment Share on other sites More sharing options...
Ferret Posted May 16, 2008 Share Posted May 16, 2008 Public Sector Wages Do Not Affect Inflation The Taxpayer pays their wages and then takes a proportion of it back. Quote Link to comment Share on other sites More sharing options...
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