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Inflation and raising pay, economics of it?

0 replies

Magoolie · 27/04/2023 09:03

Children at home as teachers on strike today. I’ve been wondering how the government plans to get everyone out of the current economic crisis.

I was listening to radio 4 the other week and there was a professor of economics on who explained that raising pay is counterintuitive during times of high inflation. This does make logical sense.

So what would happen if all public sector workers pay was increased? Where would the money come from and would it work as a strategy?

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