Its not low inflation now though.
Low wage inflation maybe, but prices are soaring. And you ain't seen nothing yet IMO. Just watch those price points soar far ahead of the 2.5% VAT increase on 4/1.
You don't notice it quite as much if you have a mortgage, since interest rates remain at historic record lows and inflation gradually repays part of your loan for you.
You really notice it though if you have paid your mortgage off or on a fixed income. Inflation is basically theft from savers to give to borrowers.
The problem with wage inflation in SL is influenced very heavily by three factors:
1. Self-inflicted. The reduction in the quota plus the insistence on more and more home-grown means demand for good, home-grown players has been soaring. Supply of course takes ages to catch up. And we all know what happens when demand exceeds supply?
2. Collapse of Sterling. It costs half as much again to get the same amount of AUD or NZD to an import as it did two years ago. And that is before the big pay rises looming in the NRL...
3. HMRC. The major hacking-back of the so-called avoidance devices (evasion according to HMRC) means it costs a lot more now to get the same net pay to more senior players, especially imports.
Net result is that, for the same money, you get a lot less bang for your bucks now. (Unless you are Warrington, of course, where special rules seem to apply
)
Something that all those who struggle to see why we don't have a team full of superstars any more when we are still spending the salary cap could maybe reflect on?
But overall, you would expect a reduction in quality if player costs to the club have been rising substantially but the cap has not.
But if the cap WAS raised, how many of the current SL clubs could afford to spend it?
See y earlier post...