We agree. Absolutely we need to live within our means, not doing so has put a mortgage on the entire country. And what one doesn't use could be spent on another who needs a leg up. So I agree, without doubt pollies and many senior public servants are over-paid. I don't accept the arguments about pay equivalency with the private sector. Most of them aren't much better than Tony Blair in Harry and Paul (see below).
I think we should save on wages to employ more lower level public servants who actually serve the public and can give people a chance to get a job and learn some skills. Not everyone is inclined to manual labour no matter how much we yell they should be. The public service once gave kids from poor backgrounds a greater chance to work at something other than their destiny. These days too many are left behind. Ultimately, I would think the cost to society is greater now.
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