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The new minimum wage is a mistake.

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On 1 Apr 2016 at 5:02pm Unfortunate Truth. wrote:
The new minimum wage comes in today but before those on the minimum wage start rejoice, there is no doubt that this will increase the flow of immigrants to this country whether we stay in the EU or not, I am personally am in favour of leaving the E.U,but even out ,we will still be forced into some kind of freedom of movement agreement or the same kind of coercive strong arm tactics that have been used against The Swiss and the Norwegians if we want continue selling our goods and services to the E.U. The unfortunate truth of the matter, is that we will have to scrap the minimum wage altogether and let the free market decide what an individual is worth rather than an interfering state.By having lower wages for unskilled work ,we will help our own indigenous lower classes to find work,increase our competitiveness in world markets , whilst at the same decreasing the attraction of the U.K. as a destination for economic migrants from no matter where they are likely to come from.
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On 1 Apr 2016 at 5:37pm Excuse me? wrote:
Who is this idiot?
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On 1 Apr 2016 at 5:57pm G o M wrote:
One of our vegetables has escaped.
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On 1 Apr 2016 at 6:14pm Small Businesswoman. wrote:
This is going to put thousands out of work.We cannot afford to pay these rates.In or out of Europe.
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On 1 Apr 2016 at 6:20pm bastian wrote:
Is that your biggest fear "unfortunate truth"-you should be more concerned that the working poor are about to be worse off under the new, and progressive minimum wage than they were before it came into place. By 2020, a £9 an hour wage will no longer sustain th working peole due to benefit cuts. they will lose more than they can manage on and people to benefit are the well off wives of hedge funders. The only reason for the up grade of the minimum wage is so that the governement can cut benefits that prop up the waged, it is still lesss than it take sot live on in the real world (as money minded folk like to call it, as if we didn't know).
Can you imagine if this had been brought in by a labour government! the fuss at small businesses etc ,thrown to the wall by the thoughtless white paper of the reds! guess what, it's been put in place by the tories, but not because they care about the poor, as will out, they will elave people on low incomes independant, but worse off.
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On 1 Apr 2016 at 6:38pm Mark wrote:
Also, the minimum wage is going to make zero difference to anyone much at all. Companies that are affected by it are almost universally adjusting their contracts of employment with their existing and future employees to account for it. The most common practice is removing paid breaks. Cancelling sick leave is another. I know someone who works in retail and carefully targeted changes were made to her contract which leave her monthly rate of pay exactly the same. That's sharp accounting getting it spot on, I must say.
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On 1 Apr 2016 at 6:58pm Paul Newman wrote:
The minimum wage is cynical attempt to use the economic illiteracy of the left against it and does little good other than as a clever rhetorical device .
If I increase wages above their price in the market then fewer units of Labour will be bought . Its OBVIOUS. The pool of wages remains identical it is simply enjoyed by slightly fewer people as any O Level ( insert new name ) Economist will know.
The Chancellor knows he can get away with it because job creation has been so remarkably high in the UK but he also knows it cannot increase the amount of money being earnt .
The funny thing is that the Labour Party have , for years pretended that the state or the Unions or whoever , can simply legislate for more money and so they find it very hard to mention that it is all a great joke . It must drive them made being forced to pretend that the Conservative government have given out money to set against welfare . Or maybe they are really that stupid?
It will not offset reductions at all , but welfare is a despised budget across all kinds of voter and has to be progressively cut somehow unless someone has a spare few hundred billion down the back of the sofa .
In terms of EU migration (and let me mention again there just about as many Brits in the EU) as the only area in which there is any evidence of a depressing effect on wages is at the very low end ( and thatís hard to see) then it ought to have slightly negative affect on migration . Less jobs , less migrants
The counter argument for a minimum wage is a long term one . The idea would be that as business models that rely on cheap Labour fail then investment would have to go into more capital intensive areas and hopefully you become a high productivity premium brand economy.
That is certainly not what happened the last time we had high wages enforced on us in the real economy but I don`t dismiss it , don`t know enough about it .
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On 1 Apr 2016 at 7:18pm Historian wrote:
You're right Mark, employers just won't pay. So in the end the employees suffer. Employers add on costs to an employees basic wage are already heavily loaded. Employers National insurance, Maternity and Paternity pay, small businesses can't reclaim sick pay, workplace pensions contributions, holiday pay etc etc. You can add another 11% onto your salary as extras for the employer.
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On 1 Apr 2016 at 9:24pm Fairmeadow wrote:
Over-simplified analysis Paul. If we can get wages spiralling, then we will get inflation rising off the floor to nearer its target level. A reasonable level of inflation is needed to whittle away the cost of repaying debts like mortgages and student loans, and so it transfers wealth from indolent retired folk like me (as money in the bank loses value) to those who are actually working and earning. It worked well for us in the 1970s - great news for anyone whose debts are higher than their savings, providing it is kept under control.
If Paul is correct and job availability plummets, then that may also reduce the pull causing in-migration. If all it does is reduce the tax-credit subsidy to bad employers, as Osborne seems to expect, the impact may be pretty neutral - but then if Osborne-omics had any credibility at all we would already have got rid of the deficit as he once promised. Personally I suspect moving to the highest minimum wage in Europe is quite likely to accelerate in-migration.
However, the increases are being staged over the next 4 years, which seems a reasonably cautious approach
 
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On 2 Apr 2016 at 9:16am pn wrote:
Hi Fairmeadow - I dont see how wage inflation would be caused , that was surely a just a narrative for the right in the 70s to link real inlfation at up to 25% with the Unions.( I was only v young at the time but I do recall the frenzied anti Union feeling in our house .My dad told me they turned th lights out so the Russians could creep in..and indeed Jack Jones was in th pay of the KGB
On your inflation point you are saying what all the wise heads are also saying but inflation would mean interest rates going up and that would hurt families and reward the old . As one of the former I`m alright with the way we are .
As always the problems are much easier to identify than the answers
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On 2 Apr 2016 at 10:05am Mrs Twine wrote:
@ pn: I would quite like to be rewarded. When is it going to happen?


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