The Social Pact

5th November, 2009

I spoke on the order of business this morning about calls for a social pact and social solidarity. This is an oft repeated phrase but what it actually means is rarely tested.


This test is on the way now. I note that some commentators are raising the prospect of 30,000 people leaving the public sector as opposed to accepting pay freezes or reductions. How this be the right thing to do or even considered? To have fewer people working at current wages as opposed to more people working at lower wages?


Economists ofter discuss the concept of insiders and outsiders. That the system is directed and led by people inside it for their benefit. It’s obvious to me that this could happen and that it shouldn’t.


That would be an expression of real solidarity. Also asked this morning why the exchequer returns indicated yesterday that 50% of earners pay no income tax. How can this be when the income levy kicks in below the average industrial wage?


Didn’t get too many answers to these questions this morning but I will keep going!