fernandopartridge
Well-Known Member
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But of course increasing taxes is deflationary to balance, not inflationary. Of course other anti inflation measures include not printing money to fund a cap on energy prices and instead taxing companies such as Shell... which the CEO of Shell advocates happening.I’m just saying many probably wouldn’t happen if inflation wasnt 10%.
To pay for increases across the board will need tax rises for a majority of the country or cuts and/or price increases (in private sector). Both of these could be inflationary
The attempt to reduce higher rate tax rate was both stupid and tone deaf especially when pushing wage restraint for those on lower salaries
Now we're in truly ridiculous teritory when Rees Mogg is the moderate!!!
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"Money printing" is not the issue there is no surplus of demand in the economy. Just supply shocks for various reasons.
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But of course increasing taxes is deflationary to balance, not inflationary. Of course other anti inflation measures include not printing money to fund a cap on energy prices and instead taxing companies such as Shell... which the CEO of Shell advocates happening.
And despite public sector wages running behind inflation, inflation has gone up, therefore suggesting that actually a (close to, remember, not at) inflation linked pay rise wouldn't necessarily boost inflation further.
Plus strikes are more likely to be avoided if government policy, as you hint at, goes for more of an in it together approach rather than a let's look after the already rich and powerful.
You seem to be oblivious to the fact that these strikes have been 10 years in the making. My wife for instance is a civil servant who hasn’t had a pay rise in 10 years. This is an accumulation of things, clearly, but this has been coming longer than the current issues.Not sure all this can be all be blamed on the current governments (which admittedly is a shit show)
Strikes are taking place because rampant inflation, a majority of which is driven by energy prices caused by the war. The remaining element is due to amount of money printed to prop western society up during Covid and subsequent post Covid demand/supply issues.
Potential black outs could happen across Europe due to historical reliance on Russian gas, mainly by Europe who have now had to return to our energy market, pushing up prices and using same finite sources. We could/should have had better storage but ultimately I’d hope Europe will help us out as it’s only thanks to us piping converted liquid gas to them that they have filled up their storage and aren’t already facing mass black outs
There are plenty of issues we are facing that the government has caused and/or certainly not really helped with, but by pointing the finger at ourselves for these issues gives Putin and China a free pass* and doing ourselves a massive disservice. Remove Covid and the war from the the last couple of years and we don’t have a number of the issues we currently face, or certainly nowhere near the level of problems.
We have rightly decided to stand by Ukraine militarily and economically and are now paying the price/suffering the consequences for the sanctions. As a country we should be reminding ourselves of this and should be proud of the steps we are taking and the price we are paying, albeit minor when compared with the Ukrainians.
All that being said I wouldnt trust Truss in a benign period of government let alone in a crisis !
*Germany have also had a far greater role to play in the energy mess we are all facing
Ps sorry for the long rambling message but people need to look at route causes of problems and focus on holding government to account for stuff like last weeks shambles !
You seem to be oblivious to the fact that these strikes have been 10 years in the making. My wife for instance is a civil servant who hasn’t had a pay rise in 10 years. This is an accumulation of things, clearly, but this has been coming longer than the current issues.
I think the only thing that would have changed is the percentage of union members voting to strike. I think the strikes would still be happening because the mood was there from 12 years of austerity, stagnated wages which are wage cuts in real terms. Being a civil servant is not the jolly some people think it is. You’re overplaying the rampant inflation card. It’s so much bigger than that.Fair point. I appreciate some strikes might be justifiable, especially now with inflation so high (I do have a fundamental issue with striking but that’s a separate matter). I honestly believe others wouldn’t be happening without rampant inflation.
While I'm with you in the main, got to point out that the reason companies like Hermes can exist is because they undercut. Royal Mail don't really protect wages elsewhere in a competitive market... but what we do have to change culturally is the concept of paying for a bit of quality (or in this case, not having some random nutter hurl your parcels all over the place while the delivery bloke has to rely on his own beat up rust bucket!)It’s even about protecting wages for other workers in the courier industry because Royal Mail set’s the benchmark wage in the industry.
Agree on how it has held asset values up but don't think it's really had any extensive impact on day to day inflation. It does feel like the entire financial system is built on sand.A lot of it flows through to the richest and they buy assets (see US stock market in recent times). This ultimately fuels elements of inflation
I think the only thing that would have changed is the percentage of union members voting to strike. I think the strikes would still be happening because the mood was there from 12 years of austerity, stagnated wages which are wage cuts in real terms. Being a civil servant is not the jolly some people think it is. You’re overplaying the rampant inflation card. It’s so much bigger than that.
Talk to a post man and ask them why they’re striking. I have. It’s about enforcing an un-negotiated pay rise on them, it’s about enforcing working conditions on them that we’re supposed to be guaranteed wouldn’t happen when Royal Mail was privatised. It’s even about protecting wages for other workers in the courier industry because Royal Mail set’s the benchmark wage in the industry.
Some professions don't necessarily work in a free market however, but have cultural value rather than economic. Maybe stretching it with Royal Mail, but a post office can be the fabric of a village, and offers a hub where people know what's going on and have a contact... and the postman in my parents' village has alerted people when their curtains have been closed abnormally across a couple of days, has helped get help to people who'd otherwise never get it.Don’t get me started on Royal Mail. This is very different to say nurses. This won’t go down well on here (but I’ll say it anyway) but if someone’s not happy with their your job and pay as postman/woman, get another job. If there’s a shortage of postmen and women, they’ll have to pay more to attract people to the job ?! That’s what happens in the private sector and with a shortage of available workers this should be happening more
Something like nurses striking is different as there’s a huge shortage and the government have taken to piss (relying on their goodwill). They need to pay them more. Morally this should happen anyway
Basic view on life I know
Don’t get me started on Royal Mail. This is very different to say nurses. This won’t go down well on here (but I’ll say it anyway) but if someone’s not happy with their your job and pay as postman/woman, get another job. If there’s a shortage of postmen and women, they’ll have to pay more to attract people to the job ?! That’s what happens in the private sector and with a shortage of available workers this should be happening more
Something like nurses striking is different as there’s a huge shortage and the government have taken to piss (relying on their goodwill). They need to pay them more. Morally this should happen anyway
Basic view on life I know
Some professions don't necessarily work in a free market however, but have cultural value rather than economic. Maybe stretching it with Royal Mail, but a post office can be the fabric of a village, and offers a hub where people know what's going on and have a contact... and the postman in my parents' village has alerted people when their curtains have been closed abnormally across a couple of days, has helped get help to people who'd otherwise never get it.
That's worth paying for ahead of an overworked goon who gets no employment protection.
So unless it's a "worthy" cause, in your opinion, you'd remove the right to strike entirely?
So unless it's a "worthy" cause, in your opinion, you'd remove the right to strike entirely?
And of course if publicly owned you can take advantage of cross subsidisation in the rail network, where the profits of busy routes subsidise the less busy, rather than the profits leaving the country in the form of dividends. It would mean more can be absorbed and then, when conditions pick up, you can raise more profits to fund the network as a whole. Of course government could take the decision to hold off a fare rise until the economy picks up again... you could possibly even write that into some kind of pay deal couldn't you, that in return for a deal now there's a commitment not to demand parity of pay rise with increase in ticket price if said ticket price rises above inflation when conditions improve.Seriously though, I just don’t agree with a lot of strikes.
Say the rail strikes. Increase in salaries will lead to increase in fares*. If publícally owned (which I think there’s a good argument for as the current half way house is a shamble) increase in salaries will lead to increase in taxes as I don’t think fares are covering total operating costs
*Having said that I don’t trust rail companies not to try to profit and rise fares by inflation and then not pass that onto workers - this would be wrong. They can’t have it both ways
yep and I’ve been disappointed I haven’t been contacted personally about all planned strikes
Seriously though, I just don’t agree with a lot of strikes (some I do)
Say the rail strikes. Increase in salaries will lead to increase in fares*. If publícally owned (which I think there’s a good argument for as the current half way house is a shamble) increase in salaries will lead to increase in taxes as I don’t think fares are covering total operating costs
*Having said that I don’t trust rail companies not to try to profit and rise fares by inflation and then not pass that onto workers - this would be wrong. They can’t have it both ways
OK, so genuinely, let's work this through. I'm, say, a postman who's worked in my job diligently for a good few years. I've got job security, in that I can't be sacked on a whim or made to work on a ZHC, but my pay has lagged far behind inflation for a number of years, so in effect I've taken a pay cut year after year after year.
This year I've been offered 2% whilst the company has made huge profits and paid substantial shareholder dividends. Inflation is at about 11%, maybe more.
I've got a house near my job, my kids are well set at the local schools, and I'm near my family. I've got a mortgage and bills to pay.
Where do I go that going to offer me the same level of job security and let me pay my bills?
And, will they be able to employ the other 90,000 of us, 97.6% of whom feel the same way?
25% of the ticket price goes to wages. So a 10% pay increase would raise ticket prices by 2.5%. Just to put that in context.
The problem with suppressing pay to deal with inflation is that spending power shrinks and that which is left goes to finance and utilities not into the economy. Particularly if you suppress low and middle income earners and inflate the high end where people are buying assets and more likely spending internationally than locally. And especially particularly in sectors that have not had inflationary pay rises for years (not talking about trains here obviously) so already have hobbled spending power.
I’ll be blunt: most people working in the public sector do so for a fucking pittance, and it’s only because it’s an easy virtue signal for politicians looking to look tough on public finances.
I agree that a swift end to Ukraine would probably do more than all the government policy put together though.
Agree with a lot of that. I think all firms should be looking at as close to inflation rises for all workers below national average. If they can afford inflationary rises for all great (although if we expect deflation following recession they might be better offering partial bonuses instead)
Yeah I mean I won’t be going in asking for 10%, not at all. This will be the first year since going to the private sector my pay won’t have increased in a year. But like hell should my NHS worker partner on £17k not get anything.
On Truss blocking the campaign, this is what she is opposed to? Really?!
I work in the private sector and it defiantly doesn't happen in my industry, if anything wages are going down.if someone’s not happy with their your job and pay as postman/woman, get another job. If there’s a shortage of postmen and women, they’ll have to pay more to attract people to the job ?!That’s what happens in the private sector
Not sure all this can be all be blamed on the current governments (which admittedly is a shit show)
Strikes are taking place because rampant inflation, a majority of which is driven by energy prices caused by the war. The remaining element is due to amount of money printed to prop western society up during Covid and subsequent post Covid demand/supply issues.
Potential black outs could happen across Europe due to historical reliance on Russian gas, mainly by Europe who have now had to return to our energy market, pushing up prices and using same finite sources. We could/should have had better storage but ultimately I’d hope Europe will help us out as it’s only thanks to us piping converted liquid gas to them that they have filled up their storage and aren’t already facing mass black outs
There are plenty of issues we are facing that the government has caused and/or certainly not really helped with, but by pointing the finger at ourselves for these issues gives Putin and China a free pass* and doing ourselves a massive disservice. Remove Covid and the war from the the last couple of years and we don’t have a number of the issues we currently face, or certainly nowhere near the level of problems.
We have rightly decided to stand by Ukraine militarily and economically and are now paying the price/suffering the consequences for the sanctions. As a country we should be reminding ourselves of this and should be proud of the steps we are taking and the price we are paying, albeit minor when compared with the Ukrainians.
All that being said I wouldnt trust Truss in a benign period of government let alone in a crisis !
*Germany have also had a far greater role to play in the energy mess we are all facing
Ps sorry for the long rambling message but people need to look at route causes of problems and focus on holding government to account for stuff like last weeks shambles !
I’m just saying many probably wouldn’t happen if inflation wasnt 10%.
To pay for increases across the board will need tax rises for a majority of the country or cuts and/or price increases (in private sector). Price rises would be inflationary
The attempt to reduce higher rate tax rate was both stupid and tone deaf especially when pushing wage restraint for those on lower salaries
Crikey. We’ve gone from people under 21 being too immature to vote to people under 50 being too immature to vote
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