Friday, May 23, 2008

I Don't Understand Economics pt. 2

There's been a row for some time about the fact that the police weren't given they pay rise the independent commission proposed. (click here for Q & A). The main argument was that it was part of controlling inflation to keep government spending pegged back.

Wind forwards to today. Harriet Harman on the Today Programme on the BBC gave an interview where she said that the government were not only compensating people for the withdrawal of the 10% tax rate, but also giving a much-needed boost to the economy with the £2.7 billion rebate recently announced.

So if £2.7 billion isn't going to set the economy on fire, why would a much smaller sum honouring police pay? It would certainly have saved a lot of hassle!

1 comment:

Chris said...

Does this get catergorized as a mis-understanding of economics or politcs?