Official Summer 2015 Budget Thread

[AtW]

You're missing all of the people who become unemployed because of this minimum wage rise, and all of those that may have come to be employed that no longer will.

Same was said for the minimum wage.

Minimum wage should be living wage. This is exactly what happens now.

[SpontaneousOrder]

Same was said for the minimum wage.

Exactly.

Minimum wage should be living wage. This is exactly what happens now.

And the point is that minimum wage effectively makes it illegal for a certain subset of people to get a job.

Minimum wage did that, this will do it more so.

[Zero Liability]

Same was said for the minimum wage.

Minimum wage should be living wage. This is exactly what happens now.

It of course depends on price inflation levels, as these can erode it so as to render it ineffective, as well as credit booms, which can boost labour demand artificially and again neutralise a higher MW's effects. Absent such factors, however, it can certainly lead to unemployment, or other methods of gradual substitution of the affected labour with other factors of production, or even not creating a new job at all. There are so many exemptions and exceptions involved with it, however, that it may be ineffective for those groups who are most likely to be on the MW, e.g. the young. In every respect it is a price control and will function just like a price control does.

[shaunbhoy]

You're missing all of the people who become unemployed because of this minimum wage rise, and all of those that may have come to be employed that no longer will.

It is all a big merry-go-round. People will receive more pay from their employers who will in turn offset this extra outlay by the reduced corporation tax they will pay.
The extra pay that is then received will subsequently be spent on goods which will increase profits and allow for increased expansion and hence more jobs for those prepared to work.
The only real losers will be the talentless little chavs that believe it is an acceptable lifestyle choice to open their legs and pop out sprogs with relentless regularity then hoover up the hard-earned taxes of the working public to service this feckless programme. About time too.

[SpontaneousOrder]

It of course depends on price inflation levels, as these can erode it so as to render it ineffective, as well as credit booms, which can boost labour demand artificially. Absent such factors, however, it can certainly lead to unemployment, or other methods of gradual substitution of the affected labour with other factors of production. There are so many exemptions and exceptions involved with it, however, that it may be ineffective for those groups who are most likely to be on the MW, e.g. the young.

Reminds me of all the fast-food workers in the US striking recently over living wage. I stare at the TV literally gobsmacked by these people campaigning for their own redundancy.

[SpontaneousOrder]

It is all a big merry-go-round. People will receive more pay from their employers who will in turn offset this extra outlay by the reduced corporation tax they will pay.
The extra pay that is then received will subsequently be spent on goods which will increase profits and allow for increased expansion and hence more jobs for those prepared to work.
The only real losers will be the talentless little chavs that believe it is an acceptable lifestyle choice to open their legs and pop out sprogs with relentless regularity then hoover up the hard-earned taxes of the working public to service this feckless programme. About time too.

The losers will be the kids who lose their jobs to automation, and the economy as a whole which keeps getting hit with more barriers to entry with regards to new enterprise. Less productivity - less competition - less innovation - more waste.

Every time you force someone to spend money in some other way than they want, you create inefficiency. Inefficiency impoverishes us all in the long run.

[AtW]

The only real losers will be the talentless little chavs

How do you plan to handle it then?

[tractor]

.....

Minimum wage was a great idea. But some great ideas are best destroyed as embryos.

Minimum wage quickly became maximum wage for a whole stratum of the population who can never look forward to anything else.

Living wage is no different, just higher at this point in time.

[SpontaneousOrder]

Minimum wage was a great idea. But some great ideas are best destroyed as embryos.

Minimum wage quickly became maximum wage for a whole stratum of the population who can never look forward to anything else.

Living wage is no different, just higher at this point in time.

Set minimum wage to £30 an hour. Solves both problems, right? If higher wages = good, then why stop at £9? And why £9 specifically?

[Zero Liability]

It is all a big merry-go-round. People will receive more pay from their employers who will in turn offset this extra outlay by the reduced corporation tax they will pay.

The reduction in the CT is only a fraction of the increased outlays. It may soften the blow a little but costs will still increase.