Saturday, 22 June 2013

Austerity measures aren’t working?

Austerity measures aren’t working?

Yes, that is the conclusion I found in an article I was reading today.  I wonder whose viewpoint they were viewing this from.

My wage was frozen three years ago, and although we have been told that we will get a wage rise this year, it has been limited to 1%, with a clause tying everyone into a limited wage rise for three further years.

This wage freeze and now very small wage rise has been worked out to be in effect a wage cut.  How is it a wage cut, I hear you ask?  Well, no one has put a price freeze on foods, energy, etc.  So consequently, even those who have had annual pay rises at the rate of inflation have less buying power, and disposable income than they had 3 years ago.  And people who have had a pay freeze are beginning to struggle.

The people who are saying that we are not under austerity measures, must be those who had plenty of money to start off with.

One price rise that might illustrate the squeeze the less well off are under is this, around 3 years ago you could buy three packets of standard own-brand pasta at Asda for £1.  Recently they have “price freezed” some prices, the same packs have been cut to 50p/pack. I think the highest was 69p for these packs. Therefore at 69p that is only one and a half packs per £1, and even with the “rollback” two for £1.  So your £1 buys you 33% less food. I don’t think this is across the board, but it is no wonder the “economy” supermarkets are becoming the most popular.  And if the wages ever become less regulated, I can’t see people going back to the dearer supermarkets.

Incidently, I had some of this discussion with my plumber, and the company he installs boilers for has given them a generous pay rise each year he has worked for them, without any negotiation.

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