Living/minimum wage

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

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.

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.

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.

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.

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%.

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?

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.

Does that answer my questions at all?

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)

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)

I'd agree with all of that list tbh. And while ever there's a skills gap like in engineering, there's going to be a lack of investment.

incidentally, while it's welcome that there is a minimum wage, living wage for those at the very bottom - what about the differentials? That is people who were in semi skilled work, but whose wages haven't also increased?

One might imagine that in the future people looking at semi skilled work might think, what's the point in trying to better my circumstances if there is no financial incentive?