ECONOMY

Reliable planning

When we speak of an incomes policy, we are obviously referring to the incomes depending on political decisions rather than the more or less free market. Such a policy cannot reduce income differentials if productivity remains lower than in the other European partners. But as productivity is the total «product» divided by the number of workers, would it be possible to plan a general policy of increasing the «product» and reducing the number of workers so as to bring about a gradual increase in incomes faster than in the other European countries and within a reasonable time period? The answer is yes and besides, such planning is the only way to seek an increase and qualitative upgrading of the product. It cannot, however, be a mere technical exercise but the result of serious negotiations between political authority and labor unions that will expressly target the dynamics of the labor market in order to orient it in this direction. Such as policy is surely desirable, not just for those directly concerned for the economy as a whole. Otherwise, the growing divergence of pay in the public and private sectors holds the danger, directly and indirectly, of creating distortions in the labor market and of downgrading public activity in all sectors to the detriment of all, including the private sector. (1)Left Coalition Euro-MP The gap grows