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Author Topic: Bright or bleak? pundits both ways!  (Read 1018 times)
ellendune
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« Reply #15 on: May 23, 2020, 05:21:40 pm »

Whatever government is in power, the most immediate problem will be "Ooooooooooooooooooooooooooooooooooooz goona pay for all this".
Well, we are of course.
Just how, apart from taxes and pay freeze will be decided quite quickly, but the recession across the world will take some time to shake off.

Of course the balance between taxes rises and (public sector) pay freezes is a political decision. If you are a monetarist (like Thatcher) then tax cuts would be the last thing you would do as that takes money out of the economy. However, if you are a follower of Keynes then you would not freeze public sector pay as most public sector workers are low paid and so any increase would be spent (not saved) and would go back into the local economy. 
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Robin Summerhill
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« Reply #16 on: May 24, 2020, 10:10:47 am »

Whatever government is in power, the most immediate problem will be "Ooooooooooooooooooooooooooooooooooooz goona pay for all this".
Well, we are of course.
Just how, apart from taxes and pay freeze will be decided quite quickly, but the recession across the world will take some time to shake off.

Of course the balance between taxes rises and (public sector) pay freezes is a political decision. If you are a monetarist (like Thatcher) then tax cuts would be the last thing you would do as that takes money out of the economy. However, if you are a follower of Keynes then you would not freeze public sector pay as most public sector workers are low paid and so any increase would be spent (not saved) and would go back into the local economy. 

There is also the issue of low paid workers tending to be entitled to more state benefits, so freezing low pay is often a lose-lose situation for the Treasury.
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stuving
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« Reply #17 on: June 02, 2020, 06:33:51 pm »

This was one of today's Zoom-bites, for which I've now found my source - the Times of 15 may. It was based on what Grant Shapps said at the previous day's press conference, largely ignored though it was in the Telegraph and the Mail. All headlined it as about free car parking to keep workers off public transport.

This is the start of the Times's piece:
Quote
Free car parks to keep workers off public transport as lockdown eases
Graeme Paton, Transport Correspondent
Friday May 15 2020, 12.01am, The Times

Motorists could be spared parking charges in town and city centres amid claims that commuters have a “civic duty” to avoid public transport during the coronavirus crisis.

Grant Shapps, the transport secretary, said yesterday that the government was in talks with councils and entertainment venues to use their car parks to allow more people to drive to work free of charge.

The £11.50 a day congestion charge in central London has already been suspended to allow key workers to reach the city and it is hoped that local authorities across Britain could follow the same spirit.

Later, he is quoted as saying "We are encouraging people to drive perhaps close to but not right into a town or city where they work in and find a place to park. So we are working not just with local authorities but also with some large entertainment venues which have car parks that aren't being used at the moment."

The Telegraph (and I think the others) cited the suspension of the London Congestion Charge as an example of the same kind as free parking - but of course that was reintroduced on the same day (15th May) as the papers appeared, and with the proposal from TfL to increase it to £15.
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