Quote:
Originally Posted by V
While I agree that public sector wages should be market driven, I would be shocked if anyone on here would actually argue that public sector wages should be tied to supply and demand factors. They very clearly believed that public sector wages should be tied to the private sector because reasons. I think because it’s fair or something.
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Salaries should be set based on supply and demand. The Salary should be the minimum amount that gets a reasonably qualified person and reasonable retention time of good employees.
The other reason is how much can you pay for services. If we want to cut costs of government and you ignore 50% of the cost of government you can’t cut costs.
In general though cuts don’t make sense as much as freezes do. Far easier to implement and you just inflate your way to the norm.