Quote: Sal Paradise "The difference with the private sector is wage inflation impacts costs - these costs have to be passed - this is resulting in much higher costs across all industries. We are not getting 2/3% increases we are getting 10%+ this is just for firms to standstill.
If you add the costs of raw material and transportation to wage inflation you have a toxic mix that will fuel further inflation or drive job losses as firms who can't pass on these increases go under.
The public sector is different HMRC/DVLC/NHS/DWP wage increases don't drive anything significantly other than taxation to pay for it i.e. it isn't passed on'"
It's a difficult conundrum, for sure.
The Tory ethos has been to squeeze the public sector wages and cut back services over the past 10+ years.
The absolute bare faced lies from Government Ministers and the PM suggesting that their pay has kept up with inflation is f****** shocking and is a deliberately
repeated lie to try and put those workers in a bad light and its ridiculous that the media dont call them out on this.
There is an horrendous double standard where limits on city bosses bonuses are being scrapped at a time when public and private sector workers are seeing massive real terms pay cuts.
The use of incorrect numbers to suggest that the average pay in certain sectors is much higher than the actual average is another tactic being used and again, needs calling out.
One of the drivers to inflation in the UK, putting our inflation above many of our European neighbours is the plummeting value of the £, making ALL dollar based imports much more expensive.
It's strange that in years gone by, a cheap £ would help drive exports but at the moment, largely due to Brexit, this isn't happening.
Certainly interesting and worrying times.
