Government paycuts. The Icelandic public has to pay

A new government is not yet born, it all seems to strand when it comes to EU matters.

The issue at hand is pay cuts. The government needs to save incredibly large amounts of money in order to live up to its deal with he IMF. The general public in Iceland has to pay the IceSave debts. That is dragging the nation and its economy to the ground.

The percentage per person is higher than the war retributions the Germans had to pay after the first world war. That could never be paid, so Hitler started to build and eventually war broke out again because of impossible financial demands.

As a pacifist and a person that is generally against warfare its hard to sit by and pay the debts left by individuals who have nothing to do with me. Perhaps a bigger nation with an army would never have been treated this way.

It sucks, that’s a no brainer. But what can be done about this debts that we the people have to pay. The government seems adamant to save certain corporations and investors at the same time it leaves the people to rot in bankruptcy.

The government needs to cut back wages, that is clear, it needs to cut back service too. The local town councils who run the day to day lives of so many need to cut back. Reports say that they might cut wages by 5% flat and save 1000 jobs by doing so. It is important to have jobs, even on a lower wage, that is clear.

If the Icelandic government does the same thing, they will save 5,5 billion ISK. That is only 10% of the whole amount that they need to save. The main question is this: Where does the other 90% come from.

The answer is not clear at the moment, but what seems clear is that the cutbacks of the whole “system” will be more severe than anything seen in the western world so far.

Health care and education are the biggest cost factors for the government, and they need to cut back. They have been cutting back for years and are running on to little funding as it is. How will they cut back from health care if it is running thin anyway?

The answer is that the cutbacks will reach to the level of the so called minimum service, the level of service that needs to be in order to keep things running. According to our reports some schools have to lay off many teachers, shorten the day for students, skip the after school day care, cut back on school meals for kids and so on. In the health care system there are major cutbacks planned, even more severe than the 5% proposal by the town councils.

By implementing changes to the wage system such as the shifts at the hospitals they will save a lot, but people will work during the evenings more, during the nights and all that on 9-5 wages with no- or little overtime paid.

This was deliberately kept away from the public before the elections in order to make sure that the parties would not have to answer for imminent cutback or deal with the difficult questions.


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