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Is it time to do away with the minimum wage?


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65% of the total increase in income over the last decade has gone to the wealthiest 1%. Far more money could be collected by working towards forcing the super rich to put something back instead of just taking.

 

On the other hand, by shaving even more money off the incomes of the poorest, you would merely be ensuring that the wealthy get an even bigger share of the pie, and at publuic expense, because the shortfall in incomes would result in higher tax credits bills.

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I hear this a lot but have never seen anything to back it up. The fact is that China pays quite high wages, but they are significantly lower than they are here. But of course the cost of living is lower and as a consequence skilled Chinese workers buy clour TVs, cars, and all the goods we expect in the west. Not comodities you buy with peanuts or a bowl of rice.

 

http://news.bbc.co.uk/1/hi/business/4436692.stm

 

These figures are 4 years out of date. But as wages increase by around 10% pa in China adding 40% to these figures will give you an idea of pay levels for the folk who are taking British jobs.

 

AVERAGE ANNUAL PAY-CHINA

Project manager: £12,173

Software engineer: £6,998

Accountant: £4,677

Sales rep: £2,649

Production worker: £1,214

 

AVERAGE ANNUAL PAY-INDIA

Project manager: £5,220

Software engineer: £5,344

Accountant: £2,956

Sales rep: £2,464

Production worker: £964

 

So at the moment in China someone manufacturing Rover 75s will be paid around £2000 pa. A lot less than the guys in Birmingham who were making Rover 75s a few years ago, but the guys in Birmingham are no longer making Rover 75s.

 

Those production wages you quoted are considerably lower than any of the other wages. I suspect production line workers in said countries would be living to exist, without the luxuries you mentioned.

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personally i dont think the minimum wage is a bad thing, however it does devalue many other jobs. As the minimum wage continues to creep up, it slowly means that people in those roles are "earning" similar money to people in some skilled/semi-skilled areas, whos pay has remained stagnant for some time.

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I hear this a lot but have never seen anything to back it up. The fact is that China pays quite high wages, but they are significantly lower than they are here. But of course the cost of living is lower and as a consequence skilled Chinese workers buy clour TVs, cars, and all the goods we expect in the west. Not comodities you buy with peanuts or a bowl of rice.

 

http://news.bbc.co.uk/1/hi/business/4436692.stm

 

These figures are 4 years out of date. But as wages increase by around 10% pa in China adding 40% to these figures will give you an idea of pay levels for the folk who are taking British jobs.

 

AVERAGE ANNUAL PAY-CHINA

Project manager: £12,173

Software engineer: £6,998

Accountant: £4,677

Sales rep: £2,649

Production worker: £1,214

 

AVERAGE ANNUAL PAY-INDIA

Project manager: £5,220

Software engineer: £5,344

Accountant: £2,956

Sales rep: £2,464

Production worker: £964

 

So at the moment in China someone manufacturing Rover 75s will be paid around £2000 pa. A lot less than the guys in Birmingham who were making Rover 75s a few years ago, but the guys in Birmingham are no longer making Rover 75s.

 

10% year on year over 4 years is 46%

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Be self-employed. Pay yourself £50 an hour. Employ your neighbour or one of your friends (so that you don't have to work alone) and pay him/her £50 an hour, too.

 

Sub-contract your labour to businesses/individuals who need the work done, but probably can't afford to pay 'minimum wage'.

 

Your firm will receive the sub-contracted rate agreed with the business/individual who wants the work done and you can use that money to pay yourself and your employee.

 

You may have to borrow money (or sell off your posessions) to make up any shortfall in receipts and wages, but you and your employee will have very well-paid jobs.

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it is economically illiterate to suppose that it would be a good ide to try and making our wages competetive with China.

 

It would require so many people becoming so poor that they would be left with no disposable income, with disaterous consequences for the UK economy, as demand for a whole range of goods and services dropped off.

 

Although, no doubt, the advocates of Chinese wages for UK workers believe it shouldn't apply to thiose in their income bracket, but merely to the untermench.

 

Low wages are usually associated with low GDP. As China's GDP has increased, so have it's wages.

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