Bitcoin Forum

As I mentioned a while ago, and as it is obvious for everyone, the money printing and giveaways for furloughs and checks signed by "the president" party is not ended or about to end. And it is time for the hangover. Inflation rises, as it could not be otherwise. The private sector, particularly some sectors, are experiencing a demand of qualified workers and that means that salaries are likely to keep with inflation. However, the governments are playing with the idea of not keeping public salaries with inflation.

Depending on the country and the flexibility, this means that civil servants and public sector may become underpaid and those who actually have skills may leave to the private sector. As a result, I forecast that public services are going to deteriorate.

The rate of inflation has given birth to more enterpreneurs and self employed citizens of different countries due to the  unmatchable difference between the inflation rate across countries and the underpaid salaries by both public and private sector many has gone into different skill acquisition just to meetup with the high cost of livelihood. I might not say the public sector would diminish but one thing is certain it might not maintain its intial value due to its poor salary scheme

Are you talking about a particular government or in general? I think that any government that wants to be re-elected (in a democratic world) can't turn its head away from inflation and not adjust salaries, because that's how they would shoot themselves in the leg - people feel on their skin very quickly if their standard of living deteriorates. Opposition forces will certainly use this to their advantage before the next elections.


We can again talk about the public sector in general, but its quality is not only determined by how much someone is paid, but also by the abilities and competencies of the people who work in that sector. For example, I will give you the example of my country, which is a member of the EU - but it is extremely corrupt and the chances of getting a job in public administration are almost zero if you are not a member of the ruling party. The people who work there are politically eligible, but far from being able to do their job properly - the judiciary is in such poor condition that the average trial takes about 10 years.

Government regulated wages could represent a shift to a planned economy (also called command economy).

https://en.wikipedia.org/wiki/Planned_economy

The mentality that says government should operate and regulate every aspect of wages, prices and the economy is a fundamental shift away from capitalism, towards socialism.

The more people try to discuss inflation. The more apparent it becomes that almost no one remembers anything relevant or important about it. Setting the stage for yet another disaster born of inflation to become a harsh and cruel reality.

People tend to forget hyperinflation is an essential ingredient behind extreme poverty of nations. Its something that can occur anywhere in the world. No one is entitled to be immune. It can affect all of us if allowed to progress to a point where it becomes terminal.

Well, if you're getting paid with a deflationary currency like Bitcoin, you won't be too worried about salary increase, because whenever the currency price goes up, you salary is worth more.
Salary increase could also cause inflation unless those who are getting the increase are prudent enough and not too many in numbers

Government shouldn't be the ones that increase salaries. The private sector houses most jobs anyways, so if the government wanted to, they can increase the salaries of any governmental employees. If inflation rates outpace growth, the solution isn't to have more government introduce pay increases, its on them to lower the inflation rate that they caused to increase in the first place. It ends up being a never ending cycle of government interventionism which wouldn't be a problem if they stopped injecting so much money into supply.

I think the government is the culprit of this and the high level of inflation. First, the government is beginning to shy away from their responsibility of providing amenities and take control of major human direct beneficial project, they sell out some government owned properties and corporation to family members and friends who determine how to run their business by themselves, they determine what salary to pay to workers and all these contribute to unregulated liquidity in the system especially in Africa. Governance is a serious business and unless people in government become sincere to deliver to small businesses and demonopolize the economy then inflation will keep increasing. Loans should get to the small business owners at low rate , this can curtail the rate of inflation.

indirectly this is actually no longer a secret because maybe all governments will do the same thing with the aim of making their image good and hoping that the public will think that he is a generous figure and indeed the point is to want to be re-elected.

the worst possibility would be like that because indeed I think everyone will definitely choose with a large income because this is a mandatory need and human greed.
apart from it all actually when talking about quality I think this is back again to competent and how the human resources in it.
because with a large salary it doesn't really guarantee that he is a competent person even though there are indeed criteria like that

Well, it's a good thing (in the US at least) that the government can't dictate what private companies can pay their workers--and I agree, if the government decides to cut costs by lowering wages of their employees, there will likely be a flight to the private sector.  That almost makes me smile, because that's what they've brought upon themselves with their reckless economic policies.  On the other hand:

This wouldn't be a good thing at all, but I don't see how those services wouldn't deteriorate if the federal government has to start slashing costs and cutting salaries.  Let's hope they start with the military first (and no disrespect to our troops, but I think we can afford to defund at least some of the military branches).

If I am not wrong, last week I heard that the the public salaries in Spain will grow a 2% by January 2022 :o. I don't know in other countries, but in this one at least it is way better to be a civil servant than to work in the public sector (taking into account rights, salary, responsibilities and schedule; namely: quality of life).

Again, I don't know in other countries.

Perhaps for some sectors of the economy, the productivity of workers with relatively diverse skills also shows a higher level. In addition, the government which is trying to rebuild the post-pandemic economy is faced with hyperinflation due to the increase in basic commodities.

Some countries are starting to get better, but the rest are still in the dark for not getting a loan from the IMF after nearly exceeding the repayment limit.

Even the salaries of private workers here look quite large with incomes that vary every month. The civil servants are guaranteed by the government with all the facilities that have been provided so that the cost of going home between abroad and within the country becomes an obligation as a form of contribution in supporting the progress of the country.

That way, private workers only rely on the remaining costs and try to do business between foreign private workers.

I have always feared this issue of workers being underpaid at this time. Ever since all this inflation started, things have been getting costly and people are not able to afford most things in the market these days because they’re not being paid enough this time around to be able to sustain them to the extent of getting whatever they will need at anytime.

People are being underpaid these days because if you compare with how much things are being sold these days in the market it’s really a big issue. I’m just hoping that they get to fix everything. I will prefer that things that are being sold in the market will decrease to the price that it used to be before, the government should do their best to put an end to the problem of inflation that we’re having now.

As you point out, the printing presses have been on full power for over a decade now and now we have a perfect storm of ingredients from Covid causing a huge upset to the global economy. We went from output dropping to near zero last year, yet in many countries people were getting subsidized and saving huge amounts with less avenues to spend. To this year people have those mass amounts saved up and want to go on spending sprees like they would have in the years before Covid. So factories of all kinds were shut down when demand was low, there was a bit of spare capacity which has now vanished and the factories cannot meet the heavy demand taking place right now. It will be an interesting few years while everything works itself back out again but for many countries it makes sense for inflation to spike a bit before hopefully getting back to "normal".

In recent years the government is one of the main causes of waste and devalue of money, every year the government prints money so it keeps increasing and so does your salary, but this means with the dong will gradually lose value. This raises many important problems as the exchange rate generates many businesses and self-employed citizens of different countries, due to the incomparable disparity between the rates of development between the two countries. It is becoming more and more difficult to employ workers and pay wages according to the standard of living in each country.

This is what I'm seeing in our country, and many governments workers are moving abroad because of a huge salary difference. I hope this could be addressed or else, they all are leaving. It was very unfortunate to see but we can urge big companies to hire all workers as they will look for highly qualified workers for them in order to get high salary rate.

In today's situation, we have to become more strategical, we can't just rely on looking for a job in order to have money but rather to find any side hustles otherwise, we call ourselves a failure.

I can only speak of the quality of public service in my country. Wanting is the mildest word you can describe it. The reality is that it is very poor, corrupt, pestered with red tapes, unprofessional, and so on and so forth. In general, it is simply garbage.

But this is not due to the fact, or at least not solely, that salaries among public workers are low and are not adjusted according to inflation. After all, both private and public workers here, and I'm referring especially to rank and file employees, have very low salaries they couldn't even manage to live a decent life. The foremost reason why public service in my country is poor is that there is very low standard, or even none at all. It seems the only qualification is that you are recommended by someone influential.

Anyway, since the pandemic, everything becomes expensive. The prices of goods and services have risen a lot. The only thing that didn't rise along with them is the ordinary worker's salary.

This is exactly what is happening in my country, because of inflation, government salaries have become worthless and more workers resign every day to go to the private sector or self-employment, this will lead to more economic deterioration of the country, government facilities have become empty despite the increase in the number of the unemployed, no one wants to work for the government with these paltry salaries that do not cover the needs of employees for only ten days a month. Unless the government changes its economic policy to solve inflation, the economic situation will become catastrophic.

The increase in the bill has raised fears in various quarters that it will lead to inflation in the economy because of the leap of this new pay structure announced by the government as the government's expenditure will increase and new money will be transferred to the market, the news of salary increase will start from house rent. So that the reins of inflation are not lost due to the increase in salaries and wages the government needs to keep in mind that the needs of the unpaid people need more than just the satisfaction of government employees, which has been successfully maintained over the past few years.

it's different in my country, where government employees are people who are financially secure, and in the end the government has to find a budget to cover it. and I see here the government collects funds from the tax sector, which seems to be looking for new land to be taxed, of course the private sector does not want to lose money and in the end product prices are raised, and this has an impact on the inevitable increase in inflation.

This is already happening across the world.

More and more people are leaving fixed jobs that are paying a measly salary that does not rise with inflation for higher risk, higher reward combinations.

The public sector is already very inefficient to put it nicely and without attractive remuneration I don't know how they can keep up with the demand for their services.

The Civil and Public service has experienced more of this over the years, especially the underpay stuff.
And this has a way of continuing with the latter being the private sector having the good pay and,
many people moving into them.
Skill is relevant and no one will be allowing the skilled people who are willing to come and expand his/her
territory to be left out, but rather, for there to be more improvement on their sides.

The government makes various reasons to maintain their ego in managing fiat.  They do not increase the wages of workers but inflation remains and definitely rises every year.  Their reason is simple, without an increase in inflation in terms of a maintained number, there will be no economic growth.  So how can workers survive and raise their economic standards, if income alone is not enough to cover their basic needs.  This fiat system is very suitable to be updated with a system that can answer various economic challenges so far.

Personally I see the opposite happening in my country ( the United States ).  There are times where I start to wonder why I spent so much time in school, why I have spent so much time since leaving college studying for major financial exams etc, when I meet with my clients (public servants) and realize that they are making an obscene amount of money compared to how little education they have received and how hard they've worked ( or lack thereof ) to get to where they are.  I could see jumping ship here happening as governments have a lot more money they are willing to spend than the private sector.

Public services in many nations are already a horrible place to work. Most of the time people there rarely work, it is like that in my nation and to my knowledge I know at least 4 other nations that are like that. Staff knows that it is harder to get fired there, it is a simple job, you get paid a low amount but you have nearly zero stress, you just go to work, do what you are told and come back home without any risks.

Private has a ton of mobbing, extra hours, bad work-life balance, 2 am calls that are urgent, business meetings that could cause your job, firing very easily, not finding a job soon enough and going into debt and many many other risks. So, no matter how cheap the salary is, I am 99% sure that there will always be public service staff who will do bad job and we will be going mad why they are so bad at it but it is by design.

I think you misunderstood the bitcoin salary option, your salary will still be the same, no devation and no increase because let's say if your monthly salary is worth 5,000 USD then the amount of btc is the in thesame convertion.
It will only change its value due to markets volatility when your salary is on your hands.
I think it's normal for the employer to keep up with the inflation and give a salary increase especially for private sectors to make sure that their employee won't resign or leave their respective position. For the public sector, the delay of salary increase depends on the congress to approve the bill immediately.

But as long as there is high unemployment rate in any country the government is not going to increase the salary of government employee according to the inflation rate because they know the employees won't quit even if they quit still they can recruit people for the same or even lower salary than experience.

It is hopeless to hear about wage increases in a country with significant unemployment due to the fact that countries like these have active loan of million to billion of dollars as is the case in mine. Actually I wanted to laugh when I read this news a while ago, but that's the truth.

If you are in a developed country then you may not have heard of the government employing workers for $10-$20 per month in many government office and public service, but this is happening in my country. No one is forcing you to work, but that's how hard it is to get a job.

When we are talking about the developing countries they are still spending their 60 to 70% of revenue coming from all the taxes to pay the employees in the government sector so we can't blame either side. So government need to buikd their revenue making by doing something instead of collecting more taxes then only the things will change.

If we talk about the government who didnt concern about rising up the minimum salary in the country, its clear that in my country the case happens too, even the minimum salary policy which is applied by them is under of the inflation. Based on what OP wrote, he told about the government who didn't rise up the salary in the public sector meanwhile the worker move to the private sector which means give a better facility for the worker. Honestly, I dunno where is, but it's much better than my country.

I think I will say that you are correct here on  the inflation and salary issues. Inflation means higher cost of living and lesser value in purchasing power of the currency. Meaning that the currency can only purchase fewer of goods or services it was getting before. Therefore when salary is stagnant and inflation keep rising, it amounts to nothing and translated to increase in poverty rate so you are correct to submit that. Salaries need to be reviewed against the rate of inflation or inflation to be reduced fat better standard of living.

It is odd that we have to learn the same lesson over and over again, the only system that we have found that works are the free markets, the moment free markets stop being free and instead there is a central party trying to dictate prices and wages then everything goes down the drain, it is as if the idea of decentralization is in fact correct and any attempt to over-regulate the markets is destined to fail, which is why one of the core principles of bitcoin, which is decentralization, is absolutely correct and the power to control the money supply should be taken away from centralized parties as they cannot help themselves repeating the same mistakes over and over again.

Not just that but we have been seeing a very clear pattern regarding the government using the taxes and other things everything in the favour of the government itself and not for the people. The workers are not even safe in the public sector anymore, they are doing strikes and at the same time it's high time they get questioned about the quality of services that they are provided.

Only people that might be gaining here would be :
Doctors
Pharmacists
Companies related to them, even though the pandemic has been there since ages now, new Drugs and new medical regime is coming every few months making it the most profitable sector.

I do think that government would not only fail to protect people from Inflation but the salaries as well would still be close to salaries in 2005 whereas we are in 2021 now. Unfortunately this is what fuels corruption.

The most qualified people usually work in the private sector.The inflation doesn't matter that much.
I don't know about the qualification of the people working in the US public services,but I'm sure that there will be more money printing,which will help for raising the salaries of public services workers in the US,so that their purchasing power doesn't deteriorate due to the inflation.
Public service workers are usually underpaid in most countries in the world,including my country.
This is bad,because teachers,doctors and policemen are actually really important for the economy of every country.The private sector cannot become effective,if the public sector isn't effective.

I think that depends in the country where you are living, in a situation like this most people wouldn’t like to lose their jobs. So, they’re still going to continue suffering with all these underpaid jobs, just because they know that if they should leave their current job it would be hard for them to find a job elsewhere. It is things like this that result to serious strike and even riots in some places, when the government refuses to do the right things that they are supposed to do for the people.

Sometimes they fail to provide solutions to problems that people are having, it is either they should solve this problem of inflation or they should increase the payment for workers. A lot of us are hoping for this inflation to stop, and would be happy if things should go back to normal.

This is only when the government is sincere but without sincerity it won't matter whatever government policy in place. Such policy will be a fake coverage to the public because it is not for good of the people. For example when government come up with loan programs they end up giving it to there friends. Ways to solve inflation problems is to increase the level of tax rate or reduce printing of money or loan especially huge loans to large businesses but these factors have left to theoritical rhetorics when compared to real economic principles as insincerity don't allow these things to work.

I'd have to say that something like that is allready happening in my country. There is not a huge diference in pay between the public and the private sector, but it's still enough so that people tend to flock over to private. However, there is a percantage of workers that value publiv sector security over private sector volatility, even at the cost of having lower pay. That will not assure good public service, but I don't see them loosing workers anytime soon.

Governments try to keep their employees with a decent pay and will take a bullet or two for them as they do not want to have millions of people on the streets mad with them because they got fired by the government, however it comes to a point in which the governments cannot allow themselves such expenses and they begin to reduce the pay of their workers, no one likes it but they accept it as they will prefer that over being unemployed and not knowing if they will get a job anytime soon.

In my Country for now no Salary increase and this is really telling because of the inflation in the economy is not helping. Even before that the price is not high is not enough to spend not to talk of now when the price are on a high side.

Civil servants are been conditioned to live at the mercy of their paychecks and salaries. In this time and age digital skills or best self development could be the only remedy because this salaries are not matching up with the inflation rate in the society keeping an average civil servant who depends solely on their job to live below their income so as to meet up with their daily expense. We already in that era where public sectors are gradually deteriorating and been replaced by skilled and self employed experts