Basic economics

...Clearly the Rail unions (and according to todays papers Teachers and other public sector unions) have not heard of (or choose to ignore) basic 'cost push-wages pull' impact on the economy. Apparently the Rail Union are demanding an above RPI inflation rise (currently around 11%)
Whilst, admittedly things are pretty desperate with the Cost of living spiralling and millions will be struggling to make ends meet, Inflation busting pay rises (cost push)will only make things worse. In addition we simultaneously have 'demand pull' with World wide shortages caused by a number of factors. Both 'cost push' and 'demand pull' cause spiralling inflation .
In the short term, pay rises seem, to be an easy answer to reducing the debt burden for households , but in reality it is akin to short term payday loans since it forces consumer prices of goods and service even higher as businesses and utilities have to increase prices to cover additional wage costs, raw materials and consumables. The alternative of profits being lower means share prices fall, company value drops and any planned investment in the business is put on hold. This is particularly relevant in the enegrgy sector.
It is all well and good the TUC (I note Angela Rayner making political Hay joining the march) in marching for Government action over the cost of living but we have not heard any concrete proposals that make any sense as to HOW.
For the reasons explained above, increasing pay for everyone is counter productive. Of course doing teh opposite, cutting costs slashing the tax burden on businesses and individuals is also an issue. The former usually means companies keep the money and shareholders and Directors reap the major benefit and Joe Public sees very little benefit (trickle down economics). Reducing wages is not viable with many people already struggling. Also those demanding huge tax cuts, are the first to complain when services are slashed to make up the Govt revenue shortfall. Meantime, windfall taxes, higher taxes for the rich, simple means a mass exodus.
There is no easy solution with the current system of Global, unregulated, 'free for all' 'market forces' economics. Anyone on either side of the political divide claiming to have an instant fix is delusional. Sitting down together and working out a medium long term solution (which would no doubt be unpalatable for everyone like most medicines that work usually are) will not happen as the UK is polarised and there is little chance of the current Govt listening to anything the opposition put forward. It is now on par with the chasm that separates Republicans and Democrats in the U.S. of A.

Sorry for the Sunday morning rant! Just needed to get that off my chest. I am sorry for all the people who are going to experience the travel disruption caused by those who consider themselves a 'special case' and will ironically cost the country millions in lost production and revenue.

 

The rail strike is not just about pay though , and do you think it’s fair to get a 3/4% pay rise when everything is going up well above the current inflation rate of 9%. Levelling up lol . Another slogan with nothing behind it !!

 

Will always support workers striking for better pay, conditions, job security.

 

My son relies on the train to take him from Milton Keynes in to London every day for work , if they strike he is up the creek , is this fair ?

 

So you want the rail workers to simply accept whatever the management offer then . They’ve tried to negotiate and got nowhere .

 

Stand shoulder to shoulder with them these companies making profits all the while targeting pay and conditions of hardworking staff F1ck the Tories

 

And yet analysis suggests that it's not, as yet, wage increases that are pushing inflation but corporate greed.

https://groundworkcollaborative.org...een-price-hikes-monopoly-and-corporate-greed/

https://www.theguardian.com/busines...on-corporate-america-increased-prices-profits

 

No, I ask you simply is it fair that my son who subscribes to the business every day by buying a rail ticket cannot get to work ?

 

That's a commute in excess of 100 miles a day. I get that housing costs in London price out the ordinary worker. It was always the case, I spent 5 years there in the early 80s but whatever happened to people living close by where they worked?

 

So; all the usual... I will take a basic economic view of 'workers' wages, but happily turn a blind eye to the rich continuing to exploit the workers. When the chief exec of a company who pays it's chief exec twice as much as the PM, but it's wrong for the cleaners to expect a wage that means my taxes don't have to subsidise it so they can afford to eat.

Basic economics says the system is broken if the workers can't afford to eat in the economy they're supporting.

The allegory I keep seeing is this:

If there's a group of monkeys, and one of the monkeys takes more then there share of food, and hides it away leaving all the other monkeys to fight over 'not enough' to the point of risking starvation. We'd want to know what the f~#* was wrong with that monkey. When they're humans we put them at the top of the Times Rich List and celebrate them.

 

Is it fair that rail workers' standards of living must suffer so that your son is not temporarily inconvenienced?

 

You answered your question with your first sentence , priced out of London, cheaper to buy in the sticks & commute , sad but true .

 

Ask him for the week to support fellow workers , work from home etc etc

 

Sorry, I did not realise that the every rail workers standard of living will suffer because of my son wanting to go into work .

 

Record profits, record share dividends, record executive pay. All fuelled by putting prices up and holding wages down. Here’s a proposal - freeze dividends and use that money to pay workers. Make second homes illegal and force house building companies and supermarkets who own vast tracts of land to release it for affordable housing. Take back the land which was bought by all those ex-slave owners who were paid by us to release their human property, and use that to create more affordable homes. Take back control of privatised monopolies- transport and utilities.
There’s plenty we can do if we think outside our current model of unregulated late stage capitalism who’s only job is to maximise shareholder value and when left alone follows this logic with ruthless efficiency.

 

Quite alright. At least now you will be better informed!

 

The Tories told them to get on their bikes and go find a job

 

I had the misfortune to work for a company on 3rd party contract who's head was Sir Philip Green...we were informed that the yearly pay review would be frozen and no pay awards would be made for that year....3 months later his wife bought him a £50m pounds plane for his birthday..
this is my reply to the opening poster of this thread....

 

And when said son gets fed up of all the hassle, gets a job near home and stops using the train altogether...
two sides to every story

 

.... He'll have a better quality of life then, won't he?