Thursday 13 July 2023

The Inflation And Pay Rises Lie



To me inflation is what happens to balloons so outside of something filled with Helium and with Happy Birthday written on it i don't know much about it or what causes it but luckily i know a man who does and he is the perfect person to ask about the often repeated line from this Government that with inflation at 8.7%, they can't give decent pay rises to the public service as it will push up inflation.
Firstly, he explained that inflation is high due to supply chain disruption following the Covid lock-downs that created shortages, the war in Ukraine and Brexit which means what hasn't caused it is wage increases so the causes of inflation have nothing to do with pay.
'Hmmm...' i said, 'but could paying Nurses and Teachers more prolong the high inflation rates as the Chancellor keeps saying'?
With a swift shake of his head he said that as the NHS, teachers or many other public servants incur no charge for the services they supply, their pay increases cannot directly fuel inflation and would only fuel it indirectly if they got above average pay rises but as the public sector pay deals that have been agreed are lower than inflation, it is tosh to say they are going to impact inflation so not only can public sector pay not increase inflation, inflation will fall whatever happens to public sector pay'.
Ah, so the Government's claim that it cannot afford public sector pay rises because they are inflationary is in that case a lie? i asked .
'Indeed', he agreed, 'The question should be then why are the Government continuing to claim it when they must know it's not true?'
Giving it some careful consideration i suggested: 'Because they are a bunch of tossers?'
'Yep, complete and utter ones' he confirmed and asked me if i wanted a Digestive but as they were not the Chocolate ones i politely declined and walked away safe in the knowledge that any discussion which ends with the Government are a bunch of lying tossers is a good one.

No comments: