Is it time for wage increases?

Purple said:
http://isabelbarrosarchitects.ie/blog/building-costs-in-ireland-2016/

Your link suggests that bricklayers are earning about €30,000 a year or around €115 a day. I know a few bricklayers. They earn between €200 and €300 a day and prices are climbing. During the boom they were getting up to €600 a day.
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I know some too, they are generally the exception.
I can't see in your link where it gives the average hourly rates

Here is CSO.

[broken link removed]
 
Is it time for wage increases?
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Yes

Why ?
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Simple, the true cost of living (forget the basket of goods, I'm talking about the real cost of living) is going up and we need to keep pace with it.

Why not rely on the government to reduce taxes to offset these increases ?
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Because the government cannot be replied upon to distribute tax breaks appropriately to those who pay the tax in the first place, they are too easily influenced and swayed by other voters such as the blue-rinse brigade, a minority of their colleagues who think they can fix things if they visit North Korea etc. etc.



.
 
MrEarl
Wage Increases will bring in extra Prsi usc and income tax 50% of any pay increase will finish up being used to sway voters,
I hate to be a kicker
I always long for peace
But the wheel that squeaks the loudest
Is the one that gets the grease
 
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RETIRED2017 said:
MrEarl
Wage Increases will bring in extra Prsi usc and income tax 50% of any pay increase will finish up being used to sway voters,
....
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Sure, but the 50% taken in various taxes and levies will then be divided up and those who first earned it will get a bit of it back in tax breaks ... they also get the remaining 50% of the pay rise, so are better off than if they just rely on the government to reduce taxes.
 
MrEarl said:
Simple, the true cost of living (forget the basket of goods, I'm talking about the real cost of living) is going up and we need to keep pace with it.
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The cost of living is a reflection of wage levels as much as anything else. If everyone gets a pay increase then nobody is really any better off. They only think that produces true wealth in an economy is increased productivity.
 
MrEarl said:
Because the government cannot be replied upon to distribute tax breaks appropriately to those who pay the tax in the first place, they are too easily influenced and swayed by other voters such as the blue-rinse brigade, a minority of their colleagues who think they can fix things if they visit North Korea etc. etc.
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MrEarl said:
Sure, but the 50% taken in various taxes and levies will then be divided up and those who first earned it will get a bit of it back in tax breaks ... they also get the remaining 50% of the pay rise, so are better off than if they just rely on the government to reduce taxes.
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So the Government can be relied upon to distribute tax breaks appropriately to those who pay it in the first place .The Government is pushing for pay increase because they know there are lots of people like in the example above see no connection between Ireland cost of living being driven up by the Government just so they can take in more tax from employer through taxing there employees,

The employee sees extra money in there pay packet when the get a pay rise they don't feel so bad about the other 50% tax going to the Government ,
 
RETIRED2017 said:
The employee sees extra money in there pay packet when the get a pay rise they don't feel so bad about the other 50% tax going to the Government ,
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The irony is that someone on €20 an hour who is paying the higher marginal rate ends up with less than the minimum wage for each extra hour they work.
 
Purple said:
The irony is that someone on €20 an hour who is paying the higher marginal rate ends up with less than the minimum wage for each extra hour they work.
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Purple I know ,Driving up the cost base on employers who pay good wages and driving up the cost of living on employee who go out to work every day,
 
TheBigShort said:
Shrewd observation there Purple.
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Yes, marginal tax rates are far too high; nobody, no matter what their income, should pay a marginal tax rate of over 50% and people on an average enough wage shouldn't be paying the same marginal tax rate as someone earning millions.
 
TheBigShort said:
https://www.bloomberg.com/view/articles/2018-02-08/germany-s-wage-deal-is-good-for-europe-too

"The end of pay moderation will help the European Central bank meet its inflation target"

Who would have thought it? Wage increases could be the tool needed for the ECB to reach its inflation target! o_O
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Wage increases work in Germany because it is a manufacturing Country will not work out the same way in Ireland ,
There are lots of groups in Ireland who will have to take a pay cut or pay more into the system if the want the same take home pay as there German Co Workers,
 
RETIRED2017 said:
Wage increases work in Germany because it is a manufacturing Country will not work out the same way in Ireland ,
There are lots of groups in Ireland who will have to take a pay cut or pay more into the system if the want the same take home pay as there German Co Workers,
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The topic is about the ECB policy to induce inflation into the eurozone economy. The arguement was that wage increases are inflationary and not QE.
The article attached supports the notion that wage increases can help the ECB reach its inflation target. There is no mention of QE.
 
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