El Cid Posted April 7, 2016 Share Posted April 7, 2016 The minimum wage is not in the spirit of the free market, but as we give out vast amounts of money in benefits and tax credits, some sort of minimum wage makes sense. Has Osborne got it right with the living wage? There needs to be freedom for employers to employ less able people less, as the living wage will end up quite high(£9 per hour) in 2020. Under 25s being the obvious, with less work experience. How is it done in other countries, are there exemptions for small businesses? There has been a ad campaign, giving details about the living wage, but it was rather vague Link to comment Share on other sites More sharing options...
Quik Posted April 7, 2016 Share Posted April 7, 2016 I have no issue with it if we are independant. In the EU paying the fat end of a tenner as a minimum when bulgarians have both the unfettered right to work here and a minimum wage of about 70p is clealy going to cause huge migratory pressures. Link to comment Share on other sites More sharing options...
sutty27 Posted April 7, 2016 Share Posted April 7, 2016 (edited) The minimum wage is not in the spirit of the free market, but as we give out vast amounts of money in benefits and tax credits, some sort of minimum wage makes sense. Has Osborne got it right with the living wage? There needs to be freedom for employers to employ less able people less, as the living wage will end up quite high(£9 per hour) in 2020. Under 25s being the obvious, with less work experience. How is it done in other countries, are there exemptions for small businesses? There has been a ad campaign, giving details about the living wage, but it was rather vague What is 'Wage Push Inflation' Wage push inflation is a general increase in the cost of goods that is preceded by and results from an increase in wages. In order to maintain corporate profits after an increase in wages, employers must increase the prices they charge for the goods and services they provide. The overall increased cost of goods and services has a negative effect on the wage increase, and eventually, higher wages will be again needed to compensate for the increased prices for consumer goods. Add to that the fact that wage push inflation will affect UK made goods more than imported goods and it could also see job losses as we import more and produce less. Edited April 7, 2016 by sutty27 Link to comment Share on other sites More sharing options...
El Cid Posted April 7, 2016 Author Share Posted April 7, 2016 Add to that the fact that wage push inflation will affect UK made goods more than imported goods and it could also see job losses as we import more and produce less. Osborne did reduce corporation tax, to compensate for increased wage bills, just hope he isn't manipulating the figures for political reasons. Link to comment Share on other sites More sharing options...
El Cid Posted March 16, 2017 Author Share Posted March 16, 2017 What is 'Wage Push Inflation' Wage push inflation is a general increase in the cost of goods that is preceded by and results from an increase in wages. I was thinking about this today, I guess it took a year to sink in My wage has been increasing due to a pay review. As wage costs increase, prices will increase and so too will differentials. Link to comment Share on other sites More sharing options...
sgtkate Posted March 16, 2017 Share Posted March 16, 2017 I was thinking about this today, I guess it took a year to sink in My wage has been increasing due to a pay review. As wage costs increase, prices will increase and so too will differentials. But as the cost of goods isn't 100% wages, then products will not increase directly in line with wages, so even if every worker in the world was given a 4% pay rise, the cost of the goods wouldn't increase by 4%. Link to comment Share on other sites More sharing options...
Cyclone Posted March 16, 2017 Share Posted March 16, 2017 The minimum wage is not in the spirit of the free market, but as we give out vast amounts of money in benefits and tax credits, some sort of minimum wage makes sense. Has Osborne got it right with the living wage? There needs to be freedom for employers to employ less able people less, as the living wage will end up quite high(£9 per hour) in 2020. Under 25s being the obvious, with less work experience. How is it done in other countries, are there exemptions for small businesses? There has been a ad campaign, giving details about the living wage, but it was rather vague Is someone less capable of putting tins onto shelves at the age of 20 than they are at 30? ---------- Post added 16-03-2017 at 11:06 ---------- I have no issue with it if we are independant. In the EU paying the fat end of a tenner as a minimum when bulgarians have both the unfettered right to work here and a minimum wage of about 70p is clealy going to cause huge migratory pressures. Surely the cost of living in the UK is considerably higher than in Bulgaria? Do we see huge migratory pressures to London because wages are higher? ---------- Post added 16-03-2017 at 11:07 ---------- What is 'Wage Push Inflation' Wage push inflation is a general increase in the cost of goods that is preceded by and results from an increase in wages. In order to maintain corporate profits after an increase in wages, employers must increase the prices they charge for the goods and services they provide. The overall increased cost of goods and services has a negative effect on the wage increase, and eventually, higher wages will be again needed to compensate for the increased prices for consumer goods. Add to that the fact that wage push inflation will affect UK made goods more than imported goods and it could also see job losses as we import more and produce less. What do we manufacture that is using labour that would be affected by the living wage increase? Link to comment Share on other sites More sharing options...
El Cid Posted March 16, 2017 Author Share Posted March 16, 2017 Surely the cost of living in the UK is considerably higher than in Bulgaria? Do we see huge migratory pressures to London because wages are higher?? The measure of a countries wealth is seen in their currency; that however bears no relation to the well being of its population. Link to comment Share on other sites More sharing options...
Cyclone Posted March 16, 2017 Share Posted March 16, 2017 Does that answer my questions at all? Link to comment Share on other sites More sharing options...
Mister M Posted March 16, 2017 Share Posted March 16, 2017 I was reading an interesting article in yesterday's Guardian about how although Unemployment is at a 40 year low (though there have been over 20 changes to the official count), wages have not increased. I'll post it here: https://www.theguardian.com/business/2017/mar/15/uk-unemployment-wages-pay-growth There have been a number of explanations given for this: Increased supply of labour low productivity increasing automation Little power of workers or unions to bargain reliance of employers on benefits / tax credits Lack of investment in high skilled jobs (e.g. engineering) Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now