Disposable Income
What everyone seems to forget is that the higher your disposable income the more goods you are able to purchase.These goods need to created/manufactured by someone..creating employment and income and so on.Taxes and unemployment reduce demand and ultimately jobs..anticyclical.I accept and understand that high income earners also purchase a lot of imported goods ,creating BOP problems.We need import replacement.Our economic growth is limited by a finite workforce.
Therein lies another problem.Labour like anything else is governed by supply and demand.Asia is going to expand rapidly over the next ten years and with it travel and aviation.Factor in retirement and you are looking at a shortage of personnel(pilots etc)It is human nature to go for the bucks.Some airlines growth will restricted by a finite number of qualified personnel...the worm is turning.The laws of supply and demand prevail.The ascendancy of the employee is beginning.Lets hope we and the government dont screw up the coming opportunities
Last edited by Captain.Q; 10th Mar 2005 at 13:27.