IFS warns of biggest squeeze on pay for 70 years over Brexit | Business | The Guardian

The Guardian cites a respected thinktank saying that UK’s withdrawal from EU will stoke inflation and peg back wages to below their 2008 level in 2021.

Source: IFS warns of biggest squeeze on pay for 70 years over Brexit | Business | The Guardian

Of course, the squeeze on pay is only half the crisis. There’s also the continued culling of public services as central and local government adjusts to lower projected national income.

Regular readers will know that this blog has repeatedly warned of the economic consequences of Brexit. But the people listened to the Pied Piper and now they must take the consequences.

Thoughts?

One response

  1. Dr Alf is right ,people have to live with their decisions regarding the EU and BREXIT and before they can even start to move into the “sunlit uplands” they have to learn some difficult truths.
    Some of these are:

    –The world does not owe us a living and if we want a high standard of living we have to pay the price in higher worker productivity or face reduced living standards
    –We cannot cut our way out of trouble so that means making and selling things that people want and exporting them all over the world
    This in turn means learning useful languages and quadrupling the export salesforce whilst initiating measures on taxation and writing down allowances that help not hinder us
    –We are responsible for our own health,spiritual and emotional wellbeing and we have a roadmap to follow based on Judeo Christian ethics ,sensible eating ,exercise and the need to develop an enabling personal philosophy
    –Our public services are inefficient and unaffordable and need to be reshaped to follow best in breed practice globally

    This means culling unnecessary civil servants,local authorities,police and fire commands and layers of management and replacing the NHS with something that is fit for purpose

    –We have too many bad bosses who hold back UK growth,undermine productivity,prevent pay from rising(except their own)and do not even realise that their companies are performing badly.

    This from Andy Haldane,the Bank of England’s Chief Economist writing in the Daily Telegraph earlier in the year”There is a statistically significant link between the quality of firm’s management processesand their productivity”

    He also accused the majority of poorly performing British firms of failing to understand their own predicament.

    The evidence for just how bad they are is there for all to see,just 400 world class companies out of 6 million registered at Companies House,directors with poor formal management training or none , no Mittelstand and poor /nonexistent language skills versus 2,500 for Germany a Mittelstand and multilingual directors who are often scientists and engineers

    –People have to understand that to reduce immigration as many of them claim to want ,that they are going to have to do some of the jobs which at present they see as “beneath them” or have those jobs automated out of existence and accept that dole and being a benefit recipient is going to get a lot tougher and will have to transmute into workfare. There can no longer be a free ride under which they remain in bed as couch potatoes,watch Jeremy Kyle and engineer a situation under which they and their partners live in seperate households each in receipt of £20,000 GBP per household,courtesy of the working taxpayers who are left.

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