public sector vs private sector

[Stacky]

Great to see that they are busy enjoying their full 2 weeks off anyway......

 

[One]

Must be nice to be paid to sit on your hole for four months of the year.

 

[Tictac]

Great to see that they are busy enjoying their full 2 weeks off anyway......

Most important question regarding the teachers conference?


Whats the grub like?

 

[bells of shandon]

Cutting public sector pay will reduce the money in circulation in the economy and further exasperate employment in the private sector. This is austerity and never has a good outcome.
Best to increase the minimum wage in the private sector, to boost disposable spending and resultant increase in employment.

 

[Stacky]

Cutting public sector pay will reduce the money in circulation in the economy and further exasperate employment in the private sector. This is austerity and never has a good outcome.
Best to increase the minimum wage in the private sector, to boost disposable spending and resultant increase in employment.

And by increasing public pay via taxing the citizens to fund it will also reduce money in circulation.

Increasing any minimum wage in the private sector means that employers would have to increase prices to pay for it.

All paid for yet again by the citizens that you are trying to help in the first place.

 

[bells of shandon]

'And by increasing public pay via taxing the citizens to fund it will also reduce money in circulation.'

Stacky, you misunderstood me. I never advocated increasing public sector pay, which I believe is currently 40% above the private sector ,not including their beautiful pension entitlements.
I would increase the minimum wage in the private sector.
Circulating money has an exponential effect in increasing economic activity, which is why austerity is such a bad idea and in fact reduces economic activity.
from Prof Bill Mitchell Economics blog'
Jobs study by the OECD (2006) finds that:
There is no significant correlation between unemployment and employment protection legislation;
The level of the minimum wage has no significant direct impact on unemployment; and
Highly centralised wage bargaining ( minimum wage) significantly reduces unemployment.

 

[Stacky]

Any minimum wage would have to br fu ded by incrrasing prices so additional inflation hurting all

 

[bells of shandon]

Any minimum wage would have to br fu ded by incrrasing prices so additional inflation hurting all

That is a fallacy and disproved by Real Economists. The UK has had minimum wage for many years and just recently another increase, and no significant inflation.
The world economy is in a deflationary period for the past few years with even negative interest rates in Japan.
Govts like inflation ,it means they can pay the interest on bonds with devalued currency.

 

[bells of shandon]

From Econim news;
Ireland’s minimum wage was introduced in 2000. The country has some of the most unique minimum wage laws in the world, with certain reductions applying to different workers (particularly young workers).

For example, as of 2011, the minimum wage in Ireland was €8.65 per hour. However, certain groups receive minimum wage reductions:

30% reduction for all employees under 18
20% reduction for employees over 18 in their first year of employment in any job since they turned 18
10% reduction for employees over 18 in their second year of employment in any job since they turned 18
That minimum wage can be reduced even further by up to €7.73 per day if lodgings or food are provided as part of the job.

Trainees also receive a lower minimum wage during training, ranging from 25% for the first third of the course to 10% on the last third of the course.

 

[Stacky]

That is a fallacy and disproved by Real Economists. The UK has had minimum wage for many years and just recently another increase, and no significant inflation.
The world economy is in a deflationary period for the past few years with even negative interest rates in Japan.
Govts like inflation ,it means they can pay the interest on bonds with devalued currency.

Uk inflation could hit 3% by Q3 or Q4 this year and resultant high interest rates early 2014

EU inflation is growing at 1.5% this week
so no "deflation" there or the UK.


If we are as you say in a "deflation" where things are getting cheaper then why would there be demands for higher pay?

You have just countered your own argument

If Socialists knew anything about economics then they would not be Socialists.