Dear Editor,
Progress in the current contentious wage negotiations between the Government and public sector workers represents yet another opportunity for us to acknowledge the negative link between perennial, automatic wage increases and perennial poverty-producing inflation, especially where salary increases are not matched by improved productivity.
Now is a great opportunity to recognise the authenticity of the philosophy that says: "He is not most prosperous who has the most, but who needs the least." If, as a society, we accept this philosophy, then we will continue working towards keeping the cost of living (inflation) generally low, including general interest rates.
Progress in this regard will be facilitated when a majority of workers and their unions understand the self-defeating futility of ritualistically demanding higher wages unrelated to productivity, only to see the so-called benefits of those increases eroded in less than a year as prices are increased, or unproductive loans acquired to finance the wage increases.
Instead of doing the same things again, why not break the cycle now? That, I suppose, depends on how serious we are about eliminating poverty and increasing prosperity.
Carlton A Gordon
Kingston 10
carltongor@gmail.com
No increased wages without productivity
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Progress in the current contentious wage negotiations between the Government and public sector workers represents yet another opportunity for us to acknowledge the negative link between perennial, automatic wage increases and perennial poverty-producing inflation, especially where salary increases are not matched by improved productivity.
Now is a great opportunity to recognise the authenticity of the philosophy that says: "He is not most prosperous who has the most, but who needs the least." If, as a society, we accept this philosophy, then we will continue working towards keeping the cost of living (inflation) generally low, including general interest rates.
Progress in this regard will be facilitated when a majority of workers and their unions understand the self-defeating futility of ritualistically demanding higher wages unrelated to productivity, only to see the so-called benefits of those increases eroded in less than a year as prices are increased, or unproductive loans acquired to finance the wage increases.
Instead of doing the same things again, why not break the cycle now? That, I suppose, depends on how serious we are about eliminating poverty and increasing prosperity.
Carlton A Gordon
Kingston 10
carltongor@gmail.com
No increased wages without productivity
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