George Osbourne Planning Tax credit cuts: Fair?

[Cyclone 10]

Prices go up, so the higher wage is of no benefit to the person receiving it because it doesn't buy anymore than it did before.

AKA inflation.

[unbeliever 10]

And whats the other consequence...prices go up.

 

---------- Post added 28-10-2015 at 15:19 ----------

 

 

Prices go up...it doesnt automatically follow people lose their jobs. Although it might work out that way for some.

 

My bold: Yes it does.

I'm assuming correction for inflation. If the minimum wage increase is somehow inflated away, it doesn't exist.

[exxon 10]

If the workforce were more highly trained, Aldi would struggle to recruit in the UK, because everybody would be in skilled work. So would asda, tesco etc. This would force wages up across the board.

 

I know you'll be inclined to argue with yet another supply and demand argument, but why do you suppose that average wages in the west are higher than in the developing world except for as a result of training and education?

 

I think it comes down to the last set of unemployment statistics. There was an increase in people out of work but also an increase in the number actually working. Something like 75% of jobs had been taken by migrant labour, indicating that many of the UK's jobless either can't work, are unqualified to work or simply don't want to work.

[sgtkate 10]

Anybody who is not producing enough for their employer to make it worthwhile keeping them on at the higher minimum wage will find themselves looking for a new job.

 

A high minimum wage just makes it illegal to employ somebody who does not have the wherewithal to earn that much.

Said person is therefore destined to be unemployed.

 

But surely someone needs to do that job? If you need a cleaner then you need a cleaner regardless of the wages you must pay?

 

---------- Post added 28-10-2015 at 16:03 ----------

 

Prices go up, so the higher wage is of no benefit to the person receiving it because it doesn't buy anymore than it did before.

AKA inflation.

 

Oh come on now. Even a schoolkid could tell you the price of something is not 100% wages. Even if higher wages put prices up by 50% of the extra you'd be earning, you are still 50% better off relatively.

[Alan Ladd 10]

Prices go up, so the higher wage is of no benefit to the person receiving it because it doesn't buy anymore than it did before.

AKA inflation.

 

Inflation is non existent and has not been for about 10 years.

[unbeliever 10]

But surely someone needs to do that job? If you need a cleaner then you need a cleaner regardless of the wages you must pay?

 

Nope.

You can just employ fewer cleaners.

 

---------- Post added 28-10-2015 at 16:15 ----------

 

Inflation is non existent and has not been for about 10 years.

 

Say what now?

[sgtkate 10]

Nope.

You can just employ fewer cleaners.

 

 

Possible. But as most companies would try to be efficient, surely most won't have many surplus staff lying around, so for them to stay in business they'd need similar numbers to keep going wouldn't they?

[TJC1 10]

Prices go up, so the higher wage is of no benefit to the person receiving it because it doesn't buy anymore than it did before.

AKA inflation.

 

Its not a rise directly in line with inflation.

Inflation is artificially low due to price of crude oil.

 

Its actually a rise above inflation. But only a few pence and still the rise will be worth it, for the reasons stated. Plus the bonus of reduced welfare bill.

 

---------- Post added 28-10-2015 at 16:28 ----------

 

My bold: Yes it does.

I'm assuming correction for inflation. If the minimum wage increase is somehow inflated away, it doesn't exist.

 

Whitbread said the price of coffee goes up 5p above inflation.

Next say 1% above inflation.

 

Its not inflated away.

 

---------- Post added 28-10-2015 at 16:30 ----------

 

Its a price rise. But dont overstate matters.

if you add on £2 to nmw thats about £400 extra per month.

[unbeliever 10]

Possible. But as most companies would try to be efficient, surely most won't have many surplus staff lying around, so for them to stay in business they'd need similar numbers to keep going wouldn't they?

 

Any work which a company might want done has a finite value.

If they cost of getting the work done exceeds its value, then better that it not be done.

[TJC1 10]

Inflation is non existent and has not been for about 10 years.

 

Controversial Al, care to explain?

 

---------- Post added 28-10-2015 at 16:38 ----------

 

Any work which a company might want done has a finite value.

If they cost of getting the work done exceeds its value, then better that it not be done.

 

youre dreaming. I work on a 1000% mark up.

what must tesco etc work on? 4000%?

 

The better companies will survive nicely. Profits are unpaid wages.

 

---------- Post added 28-10-2015 at 16:38 ----------

 

Any work which a company might want done has a finite value.

If they cost of getting the work done exceeds its value, then better that it not be done.

 

youre dreaming. I work on a 1000% mark up.

what must tesco etc work on? 4000%?

 

The better companies will survive nicely. Profits are unpaid wages.

[unbeliever 10]

Controversial Al, care to explain?

 

---------- Post added 28-10-2015 at 16:38 ----------

 

 

youre dreaming. I work on a 1000% mark up.

what must tesco etc work on? 4000%?

 

The better companies will survive nicely. Profits are unpaid wages.

 

Are they really?

So those people who risked their money investing in a business are doing it without expectation of a return are they?

I suppose there's no need for any money to be generated to invest in the company either?

[TJC1 10]

The tories are right on this one. a move to a high wage, low welfare economy is best

They just go about it too savagely.

 

---------- Post added 28-10-2015 at 16:42 ----------

 

Are they really?

So those people who risked their money investing in a business are doing it without expectation of a return are they?

I suppose there's no need for any money to be generated to invest in the company either?

 

Really. Instead of private shareholders, more money goes into the economy via the people who produce it.