Posts Tagged ‘re-balance the economy’

We need a fair pay revolution to re-balance the economy

01/11/2014, 10:55:58 AM

by Amanda Ramsay

The UK needs a wages-led recovery. According to poverty campaigners and researchers at the Joseph Rowntree Foundation the cost of living has gone up by 28% in the last six years, while wages have only gone up by 9%.

This cost of living crisis means bills are rising, often debts too, as many households fight a daily battle to make ends meet, with less and less cloth to cut from each month.

Following the global financial crash, food costs have soared in the UK   with price rises, since the recession started in 2007, ranging from 24%-55%, according to government figures.

Of course, it’s not tough for everybody right now. Statistics from the Trades Union Congress (TUC) show top chief executives earned 45 times the average wage back in 1998, now it is a massive 185 times as much. Such companies’ appear to be able to afford to pay the Living Wage.

It is a false economy for the current government to sit back and stomach low pay, as small disposable income levels suck demand out of our economy, with less money to spend in retail. As Kevin Slocombe of the Communication Workers Union (CWU) told me: ‘The TUC as well as countless economists believe a wages-led recovery is the only logical financial show in town.

“What we need is a new government, with an agenda for change. In May 2015, we have the ballot. We need a Labour government committed to national renewal and regeneration, with well-costed and convincing plans to re-balance the economy.”

Meanwhile, anti-politics messages resonate in a vacuum from the likes of UKIP, with trust in politicians and politics at an all-time low. A MORI survey in 2011 showed startling figures, of only 14% of the public believing politicians to tell the truth. 80% – that’s four in every five people – actively said politicians do not tell the truth.

(more…)

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