Rudd's Dull Edge of the Razor
July 8th 2008 04:48
I am a little surprised that the all-powerful Chairman Rudd isn’t sporting a wicked, Charles Manson inspired beard at the moment. Because his so-called Razor Gang has been coming up a touch on the dull side.
Rudd’s ascent to the Top Job was facilitated by his claims that he is, not unlike his opponents, an ‘economic conservative’. While an ALP Prime Minister being an economic conservative may seem to be a contradiction in itself, the reality is far more complex. You see, the Ruddbot is a man of his word. He HAS been an advocate of keeping wages in check in order to slow inflation, albeit re-opening the doors for union heavies to take industrial action to drive wages up. However, the Prime Minister made another promise. He said that he would cut cut government spending be letting loose his ‘Razor Gang’: a team specifically designed to make the hard decisions and make the necessary changes to stop unnecessary wastage of tax-payer dollars. Now, if that isn’t a conservative idea, I don’t know what is. Hell, for the ALP, it’s remarkably logical.
But the Razor Gang has a dull edge to it. The Prime Minister has signed off on a pay increase for 19 secretaries of government departments, the percentage of which is oddly reminiscent of ALP interest rates: 18.9%. Now, it’s unfair to say a pay rise is out of line without knowing all the details of what they currently get. So, I looked. As it turns out, the public servants given this almost 20% pay rise had their salary go up almost $80 000, from $410 890 to $488 557 per annum.
Let that sink in. While the Ruddbot is calling on all Australian’s to tighten their belts and make sacrifices to deal with the rising price of groceries, petrol and everyday living his own senior public servants are getting a raise worth more than most of us make in a year. I’m guessing they don’t need to shop at Woolworths to get their 4 cents off per litre.
At the same time the ALP stalwarts in the unions are being shut down left, right and centre in their quest for a $26 a week increase in the minimum wage. According to employer groups and economists, that raise may be too much inflationary pressure. Compare that to the $1400 a week pay rise for Rudd’s public servants and it doesn’t look good.
Maybe we should develop a new economic philosophy called Ruddism: where one believes the economy is best served by cutting ‘superfluous’ programs and, instead of reinvesting the savings in programs that benefit the community, using the money to boost the pay rates of public servants by tens of thousands of dollars. Maybe K-Rudd is using a type of economic reverse psychology. Using his own employees to encourage inflation, and assuming that the economy will reduce inflation in response.
Very cagey, Kevin. Very cagey. Now, if only the economy was one of those binge drinking teenage louts you like to talk about. Then the reverse psychology plan may just work.
NB. As I posted this, the Fair Pay Commission ruled that the minimum wage shall be raised by $21.66 as of October 1st 2008. Only $1378.34 to go to catch up to the $1400 pay rise for the public servants. Progress is progress, I guess.
Rudd’s ascent to the Top Job was facilitated by his claims that he is, not unlike his opponents, an ‘economic conservative’. While an ALP Prime Minister being an economic conservative may seem to be a contradiction in itself, the reality is far more complex. You see, the Ruddbot is a man of his word. He HAS been an advocate of keeping wages in check in order to slow inflation, albeit re-opening the doors for union heavies to take industrial action to drive wages up. However, the Prime Minister made another promise. He said that he would cut cut government spending be letting loose his ‘Razor Gang’: a team specifically designed to make the hard decisions and make the necessary changes to stop unnecessary wastage of tax-payer dollars. Now, if that isn’t a conservative idea, I don’t know what is. Hell, for the ALP, it’s remarkably logical.
But the Razor Gang has a dull edge to it. The Prime Minister has signed off on a pay increase for 19 secretaries of government departments, the percentage of which is oddly reminiscent of ALP interest rates: 18.9%. Now, it’s unfair to say a pay rise is out of line without knowing all the details of what they currently get. So, I looked. As it turns out, the public servants given this almost 20% pay rise had their salary go up almost $80 000, from $410 890 to $488 557 per annum.
Let that sink in. While the Ruddbot is calling on all Australian’s to tighten their belts and make sacrifices to deal with the rising price of groceries, petrol and everyday living his own senior public servants are getting a raise worth more than most of us make in a year. I’m guessing they don’t need to shop at Woolworths to get their 4 cents off per litre.
At the same time the ALP stalwarts in the unions are being shut down left, right and centre in their quest for a $26 a week increase in the minimum wage. According to employer groups and economists, that raise may be too much inflationary pressure. Compare that to the $1400 a week pay rise for Rudd’s public servants and it doesn’t look good.
Maybe we should develop a new economic philosophy called Ruddism: where one believes the economy is best served by cutting ‘superfluous’ programs and, instead of reinvesting the savings in programs that benefit the community, using the money to boost the pay rates of public servants by tens of thousands of dollars. Maybe K-Rudd is using a type of economic reverse psychology. Using his own employees to encourage inflation, and assuming that the economy will reduce inflation in response.
Very cagey, Kevin. Very cagey. Now, if only the economy was one of those binge drinking teenage louts you like to talk about. Then the reverse psychology plan may just work.
NB. As I posted this, the Fair Pay Commission ruled that the minimum wage shall be raised by $21.66 as of October 1st 2008. Only $1378.34 to go to catch up to the $1400 pay rise for the public servants. Progress is progress, I guess.
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