Comments on: Steve Bundred’s call to freeze public sector pay http://www.touchstoneblog.org.uk/2009/07/steve-bundreds-call-to-freeze-public-sector-pay/ Policy news and comment from the Trades Union Congress (TUC) Mon, 15 Mar 2010 23:25:39 +0100 http://wordpress.org/?v=2.8.5 hourly 1 By: Not just another drop in the ocean « The Local Government Officer http://www.touchstoneblog.org.uk/2009/07/steve-bundreds-call-to-freeze-public-sector-pay/comment-page-1/#comment-2709 Not just another drop in the ocean « The Local Government Officer Mon, 06 Jul 2009 12:14:37 +0000 http://www.touchstoneblog.org.uk/?p=3141#comment-2709 [...] Leave a Comment Duncan criticises the economics of the proposed public sector pay freeze. Nigel criticises the equity. I’m inclined to criticise the [...] [...] Leave a Comment Duncan criticises the economics of the proposed public sector pay freeze. Nigel criticises the equity. I’m inclined to criticise the [...]

]]> By: Charlie Marks http://www.touchstoneblog.org.uk/2009/07/steve-bundreds-call-to-freeze-public-sector-pay/comment-page-1/#comment-2705 Charlie Marks Sun, 05 Jul 2009 22:19:28 +0000 http://www.touchstoneblog.org.uk/?p=3141#comment-2705 That'd be a polticial matter Nigel, whereas cutting the wages of doctors, soldiers, teachers and police officers is a purely administrative matter (!) There'd be no problem if pay was frozen for public sector employees earning substantially more than the average private sector worker - but there's no economic logic to cutting the wages of ordinary workers. With the economy contracting, it makes no sense for the government to take an action which would result in spending power being lowered, and hence, demand being taken out of the economy. That’d be a polticial matter Nigel, whereas cutting the wages of doctors, soldiers, teachers and police officers is a purely administrative matter (!)

There’d be no problem if pay was frozen for public sector employees earning substantially more than the average private sector worker – but there’s no economic logic to cutting the wages of ordinary workers. With the economy contracting, it makes no sense for the government to take an action which would result in spending power being lowered, and hence, demand being taken out of the economy.

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