Proctor and Gamble – prices up 9%; workers pay rise below inflation; CEO wage up 44% to£14.7million. Plans for large share buy back (£18bn) to push share price up. Same story at Nestle.
So profits up, prices up, dividends up, share price up, but wages suppressed. This does not seem sustainable to me. Two people working full time on minimum wage would not earn enough to live a satisfactory lifestyle with 2 children. So living standards are expected to fall again this year. The Central Banks will keep interest rates high despite the growth in unemployment thus pushing more into poverty. Government instructs “Independent” pay review board to limit NHS rises to 2% next year.
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