Leftist propoganda?

[xoggoth]

I think this must be one of the most idiotic things I have ever read.

London living wage 'would give Treasury a £608m boost' - London - News - London Evening Standard

You can see the actual figures here:

The cost of low pay > Juncture :: IPPR

Note that the calculation of this £3.2bn boost for the exchequer includes the increased tax and NI take from the employees and increased employer's NI BUT there is no account taken of the reduction in corporation tax, tax/NI paid by bosses or the fact that reduced profits will mean less employees taken on with negative effects on tax and welfare.

I keep looking at this "study" thinking I must have missed something. An economist cannot be that stupid surely?

[AtW]

I keep looking at this "study" thinking I must have missed something. An economist cannot be that stupid surely?

Threasury is not stupid - they are far more capable of getting most of money paid to people who live from one paycheck to another than getting money from pockets of those who can afford lawyers and accountants.

Personally I think that minimum wage should be the "living wage" that they are referring to.

[xoggoth]

You could be right for all I know but that does not alter my criticism of this report. If there had been some examination of how the increase in tax revenues from workers would exceed the reduction of loss from employers I would not comment but it is not even considered.

[scooterscot]

One day I think London will just become a luminescent orb that'll detaching itself from mother Britain.

[SpontaneousOrder]

Minimum wage / living wage is just a full-on vote-winning scam, soaked up by the economically illiterate masses who don't realise it's exactly those kinds of policies that impoverish them in the first place.

Let prices do their thing - that's what they're for!

[Platypus]

Allowing companies to pay low pages then topping up with benefits is a taxpayer subsidy to those companies. Make them pay proper wages and save wealthy taxpayers like me the money

[doodab]

The more money you give these people the more they will spend, increasing demand. That is what makes the economy tick, and IMO it would be far more sensible to have a bit of wage inflation than more personal debt at the current juncture.

The well known Trotskyite Henry Ford had a similar idea almost 100 years ago.

Henry Ford - Wikipedia, the free encyclopedia

[doodab]

Note that the calculation of this £3.2bn boost for the exchequer includes the increased tax and NI take from the employees and increased employer's NI BUT there is no account taken of the reduction in corporation tax, tax/NI paid by bosses or the fact that reduced profits will mean less employees taken on with negative effects on tax and welfare.

There is no account of the savings on the benefits bill or the increased VAT take from them spending the money either. Or the overall economic effect of increasing consumer demand.

[MicrosoftBob]

The more money you give these people the more they will spend, increasing demand. That is what makes the economy tick, and IMO it would be far more sensible to have a bit of wage inflation than more personal debt at the current juncture.

The well known Trotskyite Henry Ford had a similar idea almost 100 years ago.

Henry Ford - Wikipedia, the free encyclopedia

It's working out well in Detroit for car production, yeah for wage inflation!

[doodab]

It's working out well in Detroit for car production, yeah for wage inflation!

It did at the time.