Tuesday, March 12, 2013

Much More Than Mathematics

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5 comments:

Anonymous said...

Monrose said the unions’ three main criteria when seeking a wage increase are (1) the impact of the economy, especially inflation, on workers, (2) the need to improve the standard of living of workers, and (3) the employer’s ability to pay. At the commencement of salary negotiations last year, inflation rate for the period being negotiated for was estimated at 9%, he said, and government’s imposition of a 15% VAT last October would have inflated that inflation rate by another 7%, ergo, the initial 16% wage increase the TUF asked for.

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Perhaps both sides, especially the trade unions are being completely disingenuous, or are stupendously unaware of the macroeconomic implications and ramifications of fanning further, the flames of inflation. Where ignorance is bliss ....

As an open economy, where we import almost everything, the economic transmission resulting from the injection of a 16 percent salary increase would serve to rachet up an uncontrollable inflation spiral. A large component of this would be to fuel price increases all round -- " demonstration effect" of an inflation psychology.

It is therefore, entirely self-serving that the union should ever attempt to drag this argument of the VAT into the debate, when the current rate of inflation -- absent the VAT, had its genesis in the stupendous stupidity and ignorance of the last administration injecting a 14 plus percent increase in the wage level in such a large percentage of the country's entire workforce.

Ignorance and stupdity come INEXORABLY ... with hefty latent and lagged socio-economic associated costs!

The prime ministers -- as is their wont -- do their grandstanding and foolishness; the people pay the price.

Or, as we are experiencing bitterly now, the VAT as a cost-recovery mechanism -- despite all the dissembling going on about it -- the people perish, with such callous and gross insensitivities like the VAT on medication.

March 13, 2013 at 11:03 AM
Anonymous said...

Up to now I hear nothing from the prime minister what sacrifices the government is taking...
Business as usual, whats mine is mine and the small man suffering.

March 16, 2013 at 7:29 AM
Anonymous said...

The government is 99 percent the prime minister. But the prime minister does not have leadership traits nor qualities. Yep! But he has the title. And you can't that away from him. So says the members of the SLP. He is their leader for life.

So strike up the band! Everybody sing. 3-2-1, 'God save our gracious Emperor ... who has no damn clothes on. God save the ....'

March 16, 2013 at 6:42 PM
Anonymous said...

You couldn't have said it any better. I totally agree that the government should lead by example and that is, freezing any pay increases that they are due and most importantly taking a 4% pay cut. This gesture would empower them to manipulate the CSA and also garrantee them victory in the next general elections. The time is ripe to show some balls.

March 17, 2013 at 7:10 AM
Anonymous said...

We need someone who understands deeply the needs of both business and other persons in this economy. Nobody seems to be able to answer the call who is in politics today.

March 18, 2013 at 7:32 PM

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