Perspective. It’s an amazing thing.
Wanna be ABC public servants, currently under the employ of Nine Media, writing under the banner of the Sydney Morning Herald, are currently running 2 stories here and here (there may be more) arguing that the it would damage the NSW economy to “deny” NSW public servants pay increases.
Gee. What would be the economic damage to the NSW economy from taxing the NSW private sector to death?
How do they get this? They quote a NSW Treasury official’s email:
We have incorporated input from DPC IR, as well as economic advice that reducing public sector wage growth in the short-run would deepen recession,
And who prepared this economic advice pray? That would be interesting to know but apparently the SMH does not seem interested in that.
So while employees in the private sector are losing jobs and having salaries cut, its is important to increase the salaries of those who get paid from the taxes of those losing jobs and having pay cuts.
Yet we’re all in this together and we need tax “reform” to meet the rising cost of health and education.
But the SMH also quote a report:
co-authored by Andrew Charlton and tendered to the NSW Industrial Relations Commission, the economist said the macroeconomic benefits of a pay rise to the 400,000-strong public workforce would “substantially outweigh the costs”.
Really. Shall we continue to perpetuate this Keynesian fairly tale of consumption driven economic growth:
This is $2198 less that each public servant will have to spend in the NSW economy over the period and a $3 billion over three years withdrawal of spending from the economy at a critical time
This $2198 less that each public servant will have to spend (presumably before income tax) is also $2198 more that NSW citizens have to cough up to each public servant.
We’re all in this together. Except those that aren’t.