Inflation? Yeah, what about it?

So we are marching quickly towards another summer of discontent. A lot of trade unions are up in arms about pay, inflation and the ‘nasty’ employers. But let’s have a look at what I think is a more realistic reality? First of all a lot of public workers are continually on TV News burbling on about poor pay, the ‘underpaid’ NHS employees. The NHS has been ‘left’ without the finances it needs. Well, let’s be honest, the NHS is a bottomless pit. You could throw all the GDP of the UK into it and it would still not be enough. In fact I believe the NHS is the biggest drain on the UK finances. There are reasons, one of them being the human propensity to overeat and besides that sit down all day thinking about the next meal. It is very noticeable in normal day-to-day life, even in small places like South Wales. Humanity has gained a number of inches around the waist and that’s just for starters.   

But it is not about weight, it is about the nation’s finances, and it’s management of! This morning’s news was about the pay increases for public sector workers which on its own seems fair enough. With the inflation that is around thanks to our prolific Covid spending pay rises are on everyone’s mind. The union representatives sitting on the couch being interviewed all display the same attitude. The ‘nasty’ government that denies the ‘poor’ workers a decent life. Yes, still straight out of Marx’s books. These ladies and gentlemen always drone on about the same old things we have heard since Methuselah first became head of the TUC (Trades Union Congress). It is mostly not mentioned that all theses workers are paid out of the public purse and that public purse is paid into by private sector employees. The funny thing is that from public sector pay a lot of it comes back to the government in the form of PAYE and NI charges. The national debt just keeps on growing. I don’t think government borrowing is going to stop anytime soon! Neither will inflation! 

The other thing a lot of people do not grasp is that automation in the private sector in particular will reduce the number employed hence reduce the taxation innings! As such the Welsh government continually talks about ‘Highly paid jobs’ but do precious little to help secure such industry. Highly paid jobs pay a lot of tax. The question of what sort of future this will mean is rather important because we could end up with a starkly divided society. Those who work and those who don’t. Meaning those who work maintaining those who don’t. Believe me when I refer to some books about such societies and the aggro it creates, akin to a revolution and bloodshed. With less employment but increased population growth such a society could well be on the horizon. Let’s hope we can elect people to public office who better understand these issues than the simpletons we have at the moment.


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