In my opinion, there are many good reasons to keep the pay cap, and tuition fees etc. etc.
But STEMO has kind of hit the nail on the head. If the Tories don't change these things, then many public sector workers and students will put Corbyn in number 10, McDonnell in number11 and Diane Abbot in the home office, somewhere between the end of this year and 5 years time.
Then the economy (and the whole of the country) will be completely facked in a way that only people who are 55 or older will be able to remember.
It will have to involve some kind of tax increases and loosening of the purse strings. I would like to think they will have the balls to scrap HS2 and slash the foreign aid budget, but I wont hold my breath,
Someone will just have to explain to future generations that although our generations left them with unimaginable levels of debt, if we hadn't, there wouldn't be a country left for them at all.
We live in strange and scary times. 
The cap should stay. Public sector pay is still generally above their private sector equivalent. If you run your own business at the beginning of each month you have effectively no money, by the end of it you have to earn enough to pay your bills and then pay yourself. If it is a limited company and you have made a gross profit of say £5,000 (same as STEMO SWMBO £60,000pa). So for taking risks (Only 41% of startups are going after 5 years which means 59% have failed and often lost the people involved money, including houses etc. and may have ended up bankrupt), probably working longer hours as the average business person works 60 hours a week, I then have to pay out of this employer and employee NI plus tax. If somebody asked me about starting a business today, like in the 1970's, I'd tell them not to bother, as the risk v gain and what you are left with as your effective tax rates rapidly go above 50% and then you have another 20% sales tax on the majority of things you buy, so your spending power can rapidly end up at about 30-40% of what you have grafted to earn.
As an example the cheapest way to generally pay yourself is by dividends. At a 40% tax rate if you pay yourself £1000, you have to pay 19% CGT on this profit (you can only pay dividends out of profits) which reduces it to £810 and then 32.5% tax which brings it down to £546.75 making my tax rate about 45% and above 100k which is taxed at 37.5% I'm left with £506.25 at tax rate of about 50%. If I spend the money on 20% VAT rated items, the effective spending power of my original £1000 is £437.30 and £405.00 respectively and of course above £100k you also have your tax allowence withdrawn at a rate of £1 for every £2 you earn. The figures are all much worse if you pay yourself through PAYE.
In 1991 the Government spent about 33% of GPD it is now 43%, which is the highest since the 1970's early 80's and most tax rises now end up earning the Government less money as the are now the wrong side of the Laffer curve in most areas. Tony BLiar & Gordon McRuin has long term fubered this country. Ever rising spending and 2008 with an out of control deficit (tax deferred) was their grand exit. We have be fortunate where the UK is one of the least worst places to do business in the EU, so we have had some growth and reasonable unemployment, but don't count on either if Marxist Corbyn and Co get near the levers of power. Leaving the EU gives us the chance to get ahead again like in the 1980's, but I can't see any party or politician with the policies to take advantage of this.
STEMO if more and more people like me say, we just can't be bothered to generate the wealth like happened in the 1970's I would suggest instead of taking your dog for a walk you start growing some of Labour's money trees as no private sector wealth creation = no tax = no public sector. Tax money can ONLY come from private sector wealth creation, public sector pay taxes are only a discount on the total public sector pay bill.
It is easy to take freedom and democracy for granted, but once lost, very costly to get it back. I'm already working on my UK exit contingency escape plans for the 2022 election, as I remember only too well the 1970's and under Corbyn it will be much, much worse, more like Venezuela if the UK is lucky and more like Cuba if it is not.
I've recently been reading about the UK constitution where many Western democracies are currently under attack by extreme left and right wing authoritarian political parties. In the UK it is frightening easy if you are so inclined to radically change it including turning the UK into a one party state, all you need is a Parliamentary majority.
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Topic: Public sector pay cap. (Read 11467 times)