Capping wages ‘best solution’
“Barbados is in a lot of trouble” and according to Professor of Economics Michael Howard, the International Monetary Fund (IMF) has called it right in proposing a two-year wage freeze in the public service and cuts in Government spending.
Howard told the MIDWEEK?NATION that a wage freeze had been on the cards for some time.
“I had previously recommended that in order to deal with the deficit, that and one way of controlling it was to put a freeze on public sector wages for two years and this was one of my recommendations.
“If expenditure is allowed to grow, and if you maintain the number of workers in the public service, then unless you cap wages, then public debt as well as the deficit is going to continue to expand,” he said.
Read the full story in today’s MIDWEEK NATION.