Seems logical

Big public sector pay rises risk fuelling inflation and undermining the Government’s plans to hire more doctors and teachers, the Treasury has said.

In a warning shot to public sector pay bodies, the Exchequer said on Tuesday that significant increases would “materially impact” plans to recruit more staff.

The public sector is large enough that pay rises there could drive inflation. Happened in the 70s, no? And isn’t that an interesting comment on the minimum wage thing – if we pay more we pay fewer?

7 thoughts on “Seems logical”

  1. Dialogue when inflation is high:
    Worker “I need a pay rise of X because inflation is high”
    Boss “I can’t pay X because inflation is high. You’ll have to accept less than X”.

    Dialogue when inflation is low:
    Worker “I need a pay rise of X to make up for the reduction in pay when inflation was high””
    Boss “It is totally unreasonable for you to ask for X when inflation is less than X”.

    Wage rises cause inflation in the same way wet pavements causes rain.

  2. The doctor shortage can be cured by paying them less. Then they’ll choose to work longer hours, and for more years, to repair their budgets.

    As for the teachers, their performance over the last couple of years suggests that a fitting reward would be mass execution.

    Why is it that when governments reach for dictatorial powers they apply them to the wrong people? It’s a mystery.

  3. Inevitable, as the number of people who can remember what happened last time we tried it decreases, and the number of people who can’t remember increases. It’s the fundamentally cyclic nature of all things. If only we taught people history, so much trouble could be averted.

  4. Well, to keep the wage bill down and still pay the increase the gummint could unload – err, I mean release – a few 100’s of thousands of bureaucrats to find more rewarding wealth creating jobs in private business. Win win really.

  5. Inflation is caused by one thing, increase in the money supply relative to production.
    Everything else is a symptom.

    Teachers and public sector workers should just shut the fuck up about how hard they are done to, with their safe jobs, pay and pensions.
    Some of us out in the real world have lost our jobs, taken massive (40%+) pay cuts and endured years of stress because their sector decided to shut the economy down – which didn’t affect them at all.

  6. “It’s the fundamentally cyclic nature of all things.”

    As in “Lessons will be learned” –> Subsequently, lessons will be forgotten. –> Rinse, repeat. It’s Institutional Dementia in a nutshell. Sadly, there’s a lot of it about.

  7. ‘Why is it that when governments reach for dictatorial powers they apply them to the wrong people?’

    Because governments can only function by dictatorially exploiting the right people?

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