It’s all a matter of perspective

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.

This entry was posted in Uncategorized. Bookmark the permalink.

25 Responses to It’s all a matter of perspective

  1. Lee

    We’re all in this together.

    A myth propagated by people, especially politicians (including Scott Morrison) who should know better.
    But then it’s a lot easier to talk the talk then walk the walk.

  2. “We’re all in this together.”

    Some animals are more equal than others.

  3. Tom

    There is no-one as blinkered, self-interested and blinded by the the Keynsian fog of ignorance as a government economist. You might as well be consulting a parking cop about traffic congestion.

  4. Lee

    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

    Why not give them a million dollar pay rise then if that’s the case?
    Sounds like Clive Palmer-type economic policy.

  5. Rabbi Putin

    Australia will soon get to experience the wonders of true financial collapse and worthless savings. There is just no other way to cure the stupidity.

  6. Cynic of Ayr

    Well, with brilliant logic such as 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 why the hell don’t we increase if by $5,000, or even $10,000. The benefits would be enormous!
    Yet, it only seems to work with Public Servants. Any increase in wages to the Private Sector causes inflation, or depression, or obesity or what-ever-the-fyck-else!
    Someone, Like Morrison, should ask this moron Andrew Charlton just that. Why does it not work with the Private Sector.
    I’m willing to be a few Shekels that co-author Andrew Charlton is a Public Servant, or at least on the Public teat.
    I’ll also bet he’s an “expert”!

  7. Squirrel

    “Yet we’re all in this together and we need tax “reform” to meet the rising cost of health and education.”

    Exactly – the same media idiots who want protected public officials to be paid even more also want a larger tax take, and are also be quick to crap on (when it suits) about the debt burden being placed on “Generation Covid”.

    Aside from the obvious point that across-the-board tax reductions equivalent to the cost of the PS pay increase would be much better for the economy, they seem to have forgotten that when their beloved PJK was Treasurer and PM, the solution to pay increases in challenging times was a percentage increase up to lower/middle salary levels, and then a flat dollar increase for the higher paid – but that would never do for the nanny state elites now, would it…..?

  8. Neil

    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.

    My leftie friends tell me budget deficits are not funded by taxes and govt bonds. They tell me govt creates money out of thin air to fund the budget. I don’t understand a single thing they say so perhaps I am quoting them wrong.

  9. NoFixedAddress

    Tsk, tsk TAFKAS

    Surely the essential workers of The NSW Public Service Government ™ are worthy of their ‘hire’.

    It’s not as if The Parliamentary wing of The NSW Public Service Government ™ are not going to spend the ‘savings’ on Public Works ™ and still increase the pay next year anyway.

    And who knows when the useless private sector will stop being leaners and start being lifters.

    The real problem of course is lack of taxes.

    The CCP can develop a strong global economy with 17% GST and if it works for them then there is no reason that it wont benefit NSW, and Australia.

    Fair Pay for Fair Play.

  10. duncanm

    by that logic, the NSW government should be distributing money to every person in the state.

    We shouldn’t put the whole burden of saving the economy on the public servants.

  11. Art Vandelay

    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”.

    Dr Andrew Charlton is the founder of AlphaBeta (part of Accenture) and was economic adviser to Prime Minister Rudd during the global financial crisis in 2008-2009.

    Say no more.

  12. mareeS

    There is no Keynsesian driven fairytale of consumption driven economic growth in our SMSF nest. We little footsoldier ducks have tightened our belts as common sense requires. Public serpents with guaranteed incomes can spend to their hearts’ pleasure.

  13. nb

    A level of arrogance and ignorance at which to wonder.
    Those with the power of coercion award themselves more stolen goods from an ever growing poor.

  14. nb

    ‘It’s for their own good.’

  15. JohnL

    Clint Eastwood once said:
    “How can so much stupidity fit into once’s head?”

  16. Jason Hall

    Well said nb
    The Lunatics have taken over the asylum, that is for sure. Alan Kohler and friends maintain that debt is only bettered by more debt – and NEVER will they acknowledge the costs. Inflation is not the only downside of huge government debt – what is the annual cost of our Fed, state and local Gov debt? The amount of debt is now well over a trillion – the interest alone must be over $20 billion p.a
    Could someone here do a short article on the costs of our government debt – that we can throw back at Kohler and fellow travellers?

  17. John A

    Marcus Decius Cornelious #3510956, posted on July 12, 2020, at 4:55 pm

    “We’re all in this together.”

    Some animals are more equal than others.

    And

    War is Peace. Freedom is Slavery. Ignorance is Strength.

  18. NoFixedAddress

    duncanm
    #3511001, posted on July 12, 2020 at 5:46 pm

    by that logic, the NSW government should be distributing money to every person in the state.

    We shouldn’t put the whole burden of saving the economy on the public servants.

    Very true DuncanM

    But they are the essentials so they are going to have to shoulder the burden unfortunately.

    But I’m surprised that The NSW Public Service Government ™ haven’t yet sold the Newcastle Port to the CCP.

    After all, when the killer coal mines are closed to save the planet ™ the port wont be worth much.

  19. Pyrmonter

    The simple test of these propositions is always – if 2 or 3% is productive, why will not 20% or 30% be more so?

    In most of the labour markets from which NSW government recruits (perhaps not the health sector), there is now unused labour; which is to say, a surplus at the prevailing price (wage). Why then are wages to be increased for insiders, rather than lowered, so as to fund the recruitment of outsiders?

  20. sfw

    I live near Falls Creek skifield, after the bushfires now virus things are deteriorating. Our local businesses live on tourists, a reasonable size accommodation business folded today, more will follow. How can any public servant have the gall to accept a payrise, much less ask for one. Things will collapse fast when. It comes.

  21. Perfidious Albino

    They’re all positively salivating at the prospect of MMT getting a run – I’ve noticed ‘proponents’ have started to pop up everywhere lately…

  22. MatrixTransform

    Things will collapse fast when. It comes.

    It … is already here

  23. mundi

    Does anyone remember a post on the Cat not that long ago from the 30’s or 40’s about Keynesians realising that under their own logic the government just needs to spend money. It doesn’t matter what on, or if its wasteful. Just spending it will work according to keynesians.

  24. Iain Russell

    More equal pigs. Public trough. Still.

  25. H B Bear

    Only a well paid public service can save us.

Comments are closed.