IBEC: Recovery dependent on pay cuts

[charley]

electricity,fuel costs ,rates all have to drop accordingly, the ESB are part of IBEC and are quite happy to take pay rises,let them start with their own members.

[Nugget]

I think 400,000 €10 salaries buying 10 widgets at €1 is better than no €20 salaries buying no widgets at €2 each.

Can you prove that wage cuts will create jobs?

[johnfás]

Can you prove that wage cuts will create jobs?

You can demonstrably prove that our high cost economy is causing us to lose jobs. How one goes about lowering costs is open to debate. Presumably you are of the opinion that by cutting costs such as electricity costs, which is imperative, you will lower costs sufficiently to create jobs? If so, what do you base that on? Or do you think that the cost of business has no relationship with the number of jobs in an economy?

[charley]

You can demonstrably prove that our high cost economy is causing us to lose jobs. How one goes about lowering costs is open to debate. Presumably you are of the opinion that by cutting costs such as electricity costs, which is imperative, you will lower costs sufficiently to create jobs? If so, what do you base that on? Or do you think that the cost of business has no relationship with the number of jobs in an economy?

wouldn't cutting salarys down to a maximum of €100k have the same effect

[Nugget]

You can demonstrably prove that our high cost economy is causing us to lose jobs. How one goes about lowering costs is open to debate. Presumably you are of the opinion that by cutting costs such as electricity costs, which is imperative, you will lower costs sufficiently to create jobs? If so, what do you base that on? Or do you think that the cost of business has no relationship with the number of jobs in an economy?

Well when you cut wages you also reduce people's purchasing power which will cost jobs in the retail sector.

Anyway what makes you think employers will hire new staff because wages decline? Maybe they will just keep the same amount of staff and make bigger profits.

[johnfás]

Well when you cut wages you also reduce people's purchasing power which will cost jobs in the retail sector.

Anyway what makes you think employers will hire new staff because wages decline? Maybe they will just keep the same amount of staff and make bigger profits.

I didn't say that declining wages would produce that effect. If you would like to go back and read my posts. I asked you whether or not there was a relationship between costs and employment and whether you believed, as someone who has stated an opposition to paycuts, that lowering non salaried costs would be sufficient to create more jobs.

It seems either that you think that lowering other business costs would be sufficient to create jobs or simply that there is no relationship between business costs and employment. Which is it?

[hammer]

Existing employers will not recruit new staff unless there is work for them to do. They are reducing existing wages as it is to survive.

Low wages will attract FDI especially if it is low wages for graduates.

If ye get a chance go to the library and take out a book by David Bosshart
called Cheap ? The [COLOR="Red"]Real Cost [/COLOR]of Living in a Low Price, Low Wage World

Costs in this country seem to be compared with Sapin all the time. Medicines, cigarettes, restaurants etc...........We will have Spanish wages soon - pity about the personal debt accumulated.

[PrinceMax]

Existing employers will not recruit new staff unless there is work for them to do. They are reducing existing wages as it is to survive.

Low wages will attract FDI especially if it is low wages for graduates.

If ye get a chance go to the library and take out a book by David Bosshart
called Cheap ? The [COLOR="Red"]Real Cost [/COLOR]of Living in a Low Price, Low Wage World

Costs in this country seem to be compared with Sapin all the time. Medicines, cigarettes, restaurants etc...........We will have Spanish wages soon - pity about the personal debt accumulated.

For graduates? But does the government not always say that we need low taxes so Ireland will be an attractive place for 'talent' to live? How can we attract graduate talent if we pursue low wages?

[Nugget]

I didn't say that declining wages would produce that effect. If you would like to go back and read my posts. I asked you whether or not there was a relationship between costs and employment and whether you believed, as someone who has stated an opposition to paycuts, that lowering non salaried costs would be sufficient to create more jobs.

It seems either that you think that lowering other business costs would be sufficient to create jobs or simply that there is no relationship between business costs and employment. Which is it?

Well yes introducing "competition" into the energy sector has been a disaster. And rent ceilings should be introduced.

[hammer]

For graduates? But does the government not always say that we need low taxes so Ireland will be an attractive place for 'talent' to live? How can we attract graduate talent if we pursue low wages?

We dont attract graduate talent. We produce them. The CAO have never had as many applications.

The live register figure will remain in the 400s as more & more students attend 3rd level education. The FDI need this talent. It needs to be real talent and as cheap as India