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-   -   Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay cut? (https://www.englishforum.ch/finance-banking-taxation/225933-aftermath-snb-eur-peg-discontinuation-would-you-happy-take-20-pay-cut.html)

The_Love_Doctor 16.01.2015 14:24

Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay cut?
 
So given that this decision that the worlds financial markets are still digesting. And with the aftermath effects being felt far and wide, given the expected deflationary pressure on the Swiss economy as a whole and the potential layoffs.

I ask the EF folk a theoretical question: If you were faced with the choice of either taking a 20% pay cut or the prospect of being laid off, what would you choose?

Phil_MCR 16.01.2015 14:25

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
change jobs and get a pay rise.

Sean Connery 16.01.2015 14:26

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
no.

I would say I still have the same living costs and need my 120'000 to cover those.

The_Love_Doctor 16.01.2015 14:27

Just added the poll...

Quote:

Originally Posted by Phil_MCR (Post 2320588)
change jobs and get a pay rise.

What if you can't get a payrise?

Quote:

Originally Posted by Sean Connery (Post 2320589)
no.

I would say I still have the same living costs and need my 120'000 to cover those.

What if your costs go down by the same amount?

Village Idiot 16.01.2015 14:45

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
Quote:

Originally Posted by The_Love_Doctor (Post 2320596)
What if your costs go down by the same amount?

Then you've managed to engineer 20% deflation into the entire economy. Congratulations.

Sean Connery 16.01.2015 14:45

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
I think the market will stabilise somewhere when the other actions take place.

Germany and Greece being two key players here.

The_Love_Doctor 16.01.2015 14:47

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
Quote:

Originally Posted by Village Idiot (Post 2320612)
Then you've managed to engineer 20% deflation into the entire economy. Congratulations.

I haven't done anything! Surprise Jordan is the one who engineered it... ;)

Magic Jordan's Speed: SNB Link

Quote:

Originally Posted by Sean Connery (Post 2320615)
I think the market will stabilise somewhere when the other actions take place.

Germany and Greece being two key players here.

With the impending ECB QE decision next Thursday the 22nd of Jan 2015, I'm afraid things might get worse before they get better...

The key player here is Super Mario against the world!

Ace1 16.01.2015 14:51

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
I didn't see the "Don't be so bloody stupid" option.

A ridiculous question, IMO.

The_Love_Doctor 16.01.2015 14:53

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
Quote:

Originally Posted by Ace1 (Post 2320629)
I didn't see the "Don't be so bloody stupid" option.

A ridiculous question, IMO.

It may seem ridiculous now but I think this is the question a lot of people will really have to answer if things continue as they are. :eek:

#dontshootthemessenger

Ace1 16.01.2015 14:54

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
Quote:

Originally Posted by The_Love_Doctor (Post 2320634)
It may seem ridiculous now but I think this is the question a lot of people will really have to answer if things continue as they are. :eek:

#dontshootthemessenger

#dontbesodamnedalarmist

Sean Connery 16.01.2015 15:09

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
everyone taking 20% pay cut will have an extremely negative impact on the Swiss economy. Which is not what you want today, trust me.

Lower salaries will mean less spending because people will feel they are less well-off. So they will not buy things they don't need and businesses will fold.

#notgoingtohappen

nejc 16.01.2015 15:09

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
Quote:

Originally Posted by The_Love_Doctor (Post 2320634)
It may seem ridiculous now but I think this is the question a lot of people will really have to answer if things continue as they are. :eek:
#dontshootthemessenger

My ability to understand economy is limited (at the best), but I think this is not how things work.
I mean, for example: I'am working as an architect and sooner or later the building frenzy will cool down. Will then my boss will come to me and says: hey sorry no work for office, your salary goes down for 20%. I think no, I think I will just loose my job. And probably that is true for most of the employees: you either have job or you don't. And that depends if they can sell it. Probably few (many?) months later, when there will be big supply of unemployed people, salaries will go down, but on the other side, a lot of people will also move out of the country.

dodgyken 16.01.2015 15:20

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
Would the 20% wage cut happen at the same time as?
- banks cutting 20% off the value of retail debt (mortgages)
- the market cutting 20% off ALL goods and service - including rent, cars, travel, food&drink, retail good
- the government slashes all tax deductions by 20% and lowers the bands by 20%

Guest 16.01.2015 15:27

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
for us on UK only pensions, there is no choice anyhow- so deep breath, count to 10 - and adjust accordingly. Nowt else we can do.

See u at HyperU tomorrow then.

hannah'sauntie 16.01.2015 15:29

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
My husband has UK and Swiss pensions, so not quite as worrying for us Odile. Saying that, we are just doing ok at the moment, so hoping things improve.

farmadoc 16.01.2015 15:30

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
Quote:

Originally Posted by Phil_MCR (Post 2320588)
change jobs and get a pay rise.

For you, but not for everyone. What do you feel is actually going to happen over the next year?

Guest 16.01.2015 15:33

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
Quote:

Originally Posted by The_Love_Doctor (Post 2320586)
So given that this decision that the worlds financial markets are still digesting. And with the aftermath effects being felt far and wide, given the expected deflationary pressure on the Swiss economy as a whole and the potential layoffs.

I ask the EF folk a theoretical question: If you were faced with the choice of either taking a 20% pay cut or the prospect of being laid off, what would you choose?

Just being laid would be nice.....

The_Love_Doctor 16.01.2015 15:34

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
Quote:

Originally Posted by dodgyken (Post 2320669)
Would the 20% wage cut happen at the same time as?

No... you just hope everything else will eventually go down...

Quote:

Originally Posted by dodgyken (Post 2320669)
- banks cutting 20% off the value of retail debt (mortgages)

No... debt incurred will stay the same...

Quote:

Originally Posted by dodgyken (Post 2320669)
- the market cutting 20% off ALL goods and service - including rent, cars, travel, food&drink, retail good

Yes, maybe but might take longer, yes (you can already get this cheaper as CH import most cars), yes (this is a doddle travel abroad will be cheaper), yes (this will soon follow too), yes (or you can just go and buy your goods in cheaper surrounding countries)

Quote:

Originally Posted by dodgyken (Post 2320669)
- the government slashes all tax deductions by 20% and lowers the bands by 20%

No.

MsWorWoo 16.01.2015 15:46

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
As i have worked here for more than the required amount, and I have a child, i would say both. Get laid off and get paid 80% on RAV looking for a new job.

dodgyken 16.01.2015 15:49

Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c
 
Quote:

Originally Posted by The_Love_Doctor (Post 2320686)
No... you just hope everything else will eventually go down...



No... debt incurred will stay the same...



Yes, maybe but might take longer, yes (you can already get this cheaper as CH import most cars), yes (this is a doddle travel abroad will be cheaper), yes (this will soon follow too), yes (or you can just go and buy your goods in cheaper surrounding countries)



No.

Property: Becomes even less affordable to buy
Goods/services: Come down far slower than wages - in the meantime the lower paid get penalised more than the higher
Tax: The government won't stand for such a sizeable cut in income tax


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