Law of unintended consequences and public sector salaries

As I get older, one of the rules of life that seems to me more and more accurate is the Law of Unintended Consequences.

It works brilliantly in politics and business; decisions cause stuff to happen that no-one foresaw and often actually move matters in a direction opposite to what was intended.

Let's take a look at this statement from David Cameron. Mr Cameron said NHS managers and other senior civil servants should not earn "more than 20 times the lowest paid" in their organisation.

Now, I am a firm believer that public sector salaries have got out of hand in the last few years. In exactly the same way that salaries for top executives, lawyers, consultants and footballers have got out of hand...Particularly top executives....But what do you think the result of this 'rule' will be?

The outsourcing of more low paid jobs.  Simple as that.  Starting salary for a nurse is about £20,000.  A cleaner or similar on minimum wage though is on £11,000.  So outsource all of those bottom end folk and the Chief Exec of the hospital is laughing....if the nurse is the lowest paid, there is scope for a £400K salary at the top.

And of course, the low paid will probably lose some of the generous public sector benefits once they get shipped off to the private sector. They will be worse off - the unintended consequences kicking in.

And actually, isn't 20 times a bit generous anyway?

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