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Thread: Is the National Minimum Wage causing Britain's high Unemployment ?

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    Default Is the National Minimum Wage causing Britain's high Unemployment ?

    Total unemployment is 2.7 million, while youth unemployment is now over a million. How much of this is caused the National Minimum Wage ?

    In the 60's there was full employment, wages were high, and there was no minimum wage.

    Now we have the National Minimum Wage unemployment is 2.7 million, and wages are lower than they were in the 60's in relation to house prices.

    The gap between rich and poor has got much wider since we have had the National Minimum Wage.

    The wages of the highest paid in a business is now often 100 times the lowest paid worker.

    In the 60's we had a huge manufacturing base. Now it has gone and I was wondering how much of that lost manufacturing is the result of having the National Minimum Wage.

    As far as I know all political parties support the National Minimum Wage, so I am not stating the official policy of any political party.
    Last edited by SDP; 06-02-2012 at 02:39 PM.

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    Trusted Member Francis Overdere's Avatar
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    Quote Originally Posted by SDP View Post
    Total unemployment is 2.7 million, while youth unemployment is now over a million. How much of this is caused the National Minimum Wage ?

    In the 60's there was full employment, wages were high, and there was no minimum wage.

    Now we have the National Minimum Wage unemployment is 2.7 million, and wages are lower than they were in the 60's in relation to house prices.

    The gap between rich and poor has got much wider since we have had the National Minimum Wage.

    The wages of the highest paid in a business is now often 100 times the lowest paid worker.

    In the 60's we had a huge manufacturing base. Now it has gone and I was wondering how much of that lost manufacturing is the result of having the National Minimum Wage.

    As far as I know all political parties support the National Minimum Wage, so I am not stating the official policy of any political party.
    You can't compare wages to house prices. House prices are the only true reflection left of the laws of supply and demand. If demand goes up,production cannot be easily increased to keep prices lower and sell more so prices increase. ( Unlike manufactured goods like cars for instance.)

    The main cause of high unemployment is high immigration.Every week another 4,700 (net) arrive here to stay permanently. If only 1 in 4 want a job that's still almost an extra 1200 looking for a job. We aren't creating that number of jobs in a month,never mind a week.

    Employers taking huge salaries isn't a result of the minimum wage. They'd simply take more if wages were less because they'd make more profit.

    It's the same old story,the rich get richer and the poor get poorer. What's the Tories idea of wealth distribution? Leave the rich alone, take from the poor and give to the poorer.
    Last edited by Francis Overdere; 06-02-2012 at 03:07 PM.
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    Quote Originally Posted by SDP View Post
    Total unemployment is 2.7 million, while youth unemployment is now over a million. How much of this is caused the National Minimum Wage ?
    The simple answer is none of it. If a company can't afford to pay someone in London 6.08 an hour, then they don't have a viable business plan.

    The reason we have high unemployment is unfettered immigration. Whilst we continue to let in every third worlder who is happy to work for poverty wages and live in sweatshop hot bunking type accommodation, we will always have high unemployment.

    Businesses are coining it in, able to charge first world prices and pay third world labour costs, whilst the taxpayer picks up the tab to pay benefits or tax credits. This open border policy of the Lefty Marxists and large corporations has changed the economic outlook for ever.

    Also, you cannot compare today with the '60s. Since then, we've had the Lima Declaration (1975), where the industrial countries agreed to transfer 25% of their industrial capacity and give it to the third world by 2000.

    What is the Lima Declaration

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    Trusted Member Francis Overdere's Avatar
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    The number in the labour force is also affected by the laws of supply and demand. The demand for workers is decreasing because of automation etc. and the supply is increasing because of mass immigration so the price of labour drops. So the working man gets even worse off than he was before and can afford even less of what he wants as he spends more and more on essentials like fuel and housing etc. the production of which cannot be increased or is controlled by a few.

    Which is exactly what is happening now.
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    The national mimimum wage was brought in at such a low level that it has had little impact on the economy I would say a tightening of the money supply in the face of crippling national debt and very low intrest rates means that the economy is struggling to expand, overall it only grew slightly last year. This is the man cause of unemployment as it was in the early 80s and I am afraid it will get worse but we cannot simply keep borrowing as we have done in the past.
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    Quote Originally Posted by Road_Hog View Post
    The simple answer is none of it. If a company can't afford to pay someone in London 6.08 an hour, then they don't have a viable business plan.

    The reason we have high unemployment is unfettered immigration. Whilst we continue to let in every third worlder who is happy to work for poverty wages and live in sweatshop hot bunking type accommodation, we will always have high unemployment.

    Businesses are coining it in, able to charge first world prices and pay third world labour costs, whilst the taxpayer picks up the tab to pay benefits or tax credits. This open border policy of the Lefty Marxists and large corporations has changed the economic outlook for ever.

    Also, you cannot compare today with the '60s. Since then, we've had the Lima Declaration (1975), where the industrial countries agreed to transfer 25% of their industrial capacity and give it to the third world by 2000.

    What is the Lima Declaration
    Road Hog

    I knew a person who was recovering from a long illness, and they did not want a high pressure job. This person just wanted a gentle job to help the recover from a long illness. They found a job in a small company where they could work at their own pace and and avoid any stress. That person contacted the jobcentre and were told it was below the natinal minimum wage and was illegal. That person had to stay on benefits a lot longer than was necessary.

    I also know a retired man of 67 who would happily work for half the national minimum wage to help pay the bills. A retired person can work without affecting the old age pension. But even though he is retired he is still covered by the national minimum wage. So that man stays unemployed as no-one wants an old man of 67, he cannot find work and is struggling to pay his bill week by week.

    My mother started looking for word in the middle of the 30's slump in 1934. She never had any difficulty finding work as there were always low paid jobs going in domestic service. My mother was willing to work for low wages at the age of 14. This was the worst slump the world had ever known, but my mother never found any difficulty getting a job, and moving to another job.

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    Quote Originally Posted by SDP View Post
    My mother started looking for word in the middle of the 30's slump in 1934. She never had any difficulty finding work as there were always low paid jobs going in domestic service. My mother was willing to work for low wages at the age of 14. This was the worst slump the world had ever known, but my mother never found any difficulty getting a job, and moving to another job.
    We has national borders then and a national workforce. The situation today is considerably different.

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    Trusted Member Francis Overdere's Avatar
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    Quote Originally Posted by SDP View Post
    Road Hog

    I knew a person who was recovering from a long illness, and they did not want a high pressure job. This person just wanted a gentle job to help the recover from a long illness. They found a job in a small company where they could work at their own pace and and avoid any stress. That person contacted the jobcentre and were told it was below the natinal minimum wage and was illegal. That person had to stay on benefits a lot longer than was necessary.

    I also know a retired man of 67 who would happily work for half the national minimum wage to help pay the bills. A retired person can work without affecting the old age pension. But even though he is retired he is still covered by the national minimum wage. So that man stays unemployed as no-one wants an old man of 67, he cannot find work and is struggling to pay his bill week by week.

    My mother started looking for word in the middle of the 30's slump in 1934. She never had any difficulty finding work as there were always low paid jobs going in domestic service. My mother was willing to work for low wages at the age of 14. This was the worst slump the world had ever known, but my mother never found any difficulty getting a job, and moving to another job.
    So the employer takes on 2 men at half the minimum wage and gets two men's work for the price of one. Meanwhile, a man remains unemployed and on benefits.

    Pensioners can receive almost almost 10,000 p.a. before paying tax. So a pensioner on basic state pension of 102 a week. He would get pension credits of about 35 a week. So is costing the taxpayer that 35. If he is earning half the minimum wage of say 6 an hour which is 3 an hour he can do his 40 hours and get an 120 a week giving him a total of 120 plus 102 (He wouldn't be getting the pension credit.) = 222. So he will pay very little tax.So let's assume we have two pensioners all that applies to.

    Meantime the unemployed man is getting his JSA of roughly 70 a week plus any other benefits he or his family may be entitled to. Benefit to the taxpayer of employing the pensioners? Zilch - and very probably an overall loss.

    Benefit to the employer? Twice the labour at the cost of one man's wage.
    Last edited by Francis Overdere; 07-02-2012 at 03:17 PM.
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    Francis Overdere

    Money is only useful in relation to what it can buy. House prices in the 60's were 3 times the averge salary. House prices are now on average 7 times the average salary.

    Therefore wages now are worth less than half what they were worth in the 60's. The National Minimum Wage is increasing the wages of people in cash terms, but those wages are only worth half what they were in real terms because of inflation.

    In the mean time unemployment keeps on rising year after year. Something is very wrong with the British economy.

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    Quote Originally Posted by SDP View Post
    Francis Overdere

    Money is only useful in relation to what it can buy. House prices in the 60's were 3 times the averge salary. House prices are now on average 7 times the average salary.

    Therefore wages now are worth less than half what they were worth in the 60's. The National Minimum Wage is increasing the wages of people in cash terms, but those wages are only worth half what they were in real terms because of inflation.

    In the mean time unemployment keeps on rising year after year. Something is very wrong with the British economy.
    House prices are twice as high (relative to wages) because the Marxists pushed feminism, with the net result women would previously have stayed at home, now go out to work. Therefore you have two incomes in a household chasing properties, the net result is a doubling in value of the cost of a property and a real decline in birth rates as women give up on raising families.

    Something is wrong? You mean the white elephant in the room, immigration? Of course we'll have a problem when we get 600k economic immigrants each year, plus that's only the recorded ones. And yes, whilst we have emigration, I rather think that that is a lot of people who have retired and not economically active. So you can't even subtract the emigration from the immigration.

    Unemployment is going to get worse and quite frankly the LibLabCon don't care. Those on the Left what to break sovereign borders and any for of nationalism and by nationalism I don't mean the right arm salute time, but those that have an attachment to their cultural heritage and like British values. And on the right, they're more than happy to have a cheap overflowing labour pool with wage deflation.

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