Is the Bank of England for real here?

[TheWhalrus]

So, just now the Bank of England announces that to combat inflation, employers should be looking to not increase staff salaries (www.theguardian.com/business/2022/feb/04/bank-of-england-boss-calls-for-wage-restraint-to-help-control-inflation). So at a time of massive inflation, we're apparently not supposed to be trying to earn more or aspiring for a higher salary in order to maintain our own living standards? Rather the Bank of England expects us to knuckle down and accept these circumstances because they can't control inflation.

Has this guy (annual salary £575,538) been smoking something? Or does he really have no grasp at all of reality?

Btw I am not saying I agree with the AL stance on payrises, at all. I just think many posts are attacking the wrong target.

BJ said "we want wages to rise", but he has no control over what private companies do. So, all public sector employees should now be insisting on 7% increase this year as a minimum or refuse to work, now the pay freeze is ending. That os not a payrise, just preventing a paycut.

He said "we have no control what private companies do". Ok. But you have control over public sector pay. So raise that at least on line with inflation then because anything less is a pay cut and a kick in the teeth.

@Puzzledandpissedoff

You and the other poster who seemed to think there are no interviews for roles at this level ...

Why on earth would I imagine there were no interviews or "homework" done?
And how on earth does that negate the issue of political interference in such matters?

People were saying there was no interview process to select the best candidate on merit. Implying the Government simply "appoints" somebody. That is not how it works. I don't always agree with the outcomes at senior levels, but there IS a process and there are interviews with qualified people (not politicians 😂😂😂😂) for senior, technical roles. I was correcting in inaccurate assertion that people in these roles are just "appointed" by Govt with no interview or analysis of skills and experience by independent people: they are not.

Oh of course political jobs for 500k + are subject to much more rigorous checks than your average TA or teacher or care assistant, and are not at all limited to only the most very capable people who happen to have been born into high places or possess 'appropriate' social links.

www.theguardian.com/politics/2021/nov/08/ministers-chose-tory-peer-as-independent-recruiter-for-major-job

Yes, but if everyone's salary goes up, then so will inflation. That's what happened in the 1970s when inflation hit 17+%

@Jaxhog

Yes, but if everyone's salary goes up, then so will inflation. That's what happened in the 1970s when inflation hit 17+%

Yep. But this is imported inflation. So the policy response needs to be different.

The BOE can do little about it. The Government needs to improve productivity. And strengthen the £ by showing the UK is a stable place to do business etc.

Oh....

Brexit voters 👀👀

You can't change geopolitical factors as a small country.

You could choose not to shoot yourself in the foot so that aby prospect of mitigating them is unavailable, however.

I guess it's a case of you reap what you sow.

I hope all of the "we knew what we were voting for" nutters are happy now.

[quote ParsleySageRosemary]Oh of course political jobs for 500k + are subject to much more rigorous checks than your average TA or teacher or care assistant, and are not at all limited to only the most very capable people who happen to have been born into high places or possess 'appropriate' social links.

www.theguardian.com/politics/2021/nov/08/ministers-chose-tory-peer-as-independent-recruiter-for-major-job[/quote]
Yeah that's disgusting. Not aware of any evidence that this happen in the case of AL but happy to be corrected?

As I said, insane people voted for a Government run by Boris Johnson, proven liar and moral desert. What did they expect to happen?! 🤣

Lol. Boris wants to keep his job. I wouldn't be looking to him for economic advice if I was you!

That's not the point I was making with my post! The point was if Boris with the week he is having can criticise you & make you the headline it's a PR blunder.

Yep. Sneaky way of introducing a new tax that will also go up and up. When this was what NI was meant to cover?

I agree with that, it will be like VAT, permanent.

Start taxing those with CAPITAL. It's not about earnings

Absolutely, this is the major problem.

So yeah, like with Brexit, the scale of this damage is a self-inflicted wound. And people are right to point it out and say, why should I or my children be the ones paying when I never agreed with this strategy in the first place, because all of the epidemilogical evidence at the time said it was madness?

Imo it's fruitless, it's happened & it's done. No amount of moaning about paying for it will stop you paying for it.

Also the tax band freezes will reduce take home pay.

@bindud

So yeah, like with Brexit, the scale of this damage is a self-inflicted wound. And people are right to point it out and say, why should I or my children be the ones paying when I never agreed with this strategy in the first place, because all of the epidemilogical evidence at the time said it was madness?

Imo it's fruitless, it's happened & it's done. No amount of moaning about paying for it will stop you paying for it.

True. But we're still right to have lost all sympathy for those that did. And stop voting for policies that would help them (to our own detriment). That goodwill is gone and won't be back.

@bindud

Yep. Sneaky way of introducing a new tax that will also go up and up. When this was what NI was meant to cover?

I agree with that, it will be like VAT, permanent.

Start taxing those with CAPITAL. It's not about earnings

Absolutely, this is the major problem.

Yep. Income tax was amso apparently temporary, to fund the Napoleonic war! Yet still here...

Once a tax is introduced it won't go away, ever. It will only go up. Gordon Brown said the NI hike he did would "fix the NHS once and for all". 😂😂😂 Everyone with a brain knew this was a lie. And here we are again.