Recently the debate about Public Sector pay has been reignited due to the Teachers Union balloting to go on strike over the possible pension reforms. This debate has been dominated by right-wing arguments such as ‘why should the public sector be spared? The private sector is feeling the pain too’. Now I’m not saying that there shouldn’t be savings in the public sector as the ‘big bad’ deficit does need to be dealt with. But, for reasons I will spell out, the public sector benefits the UK economy in ways that are difficult, if not impossible to measure.