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Minimum Wage £10 An Hour?
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All very laudable from labour but dont they get that it is just inflationary and it is only a short time before you are back to square 1, but with some inflation.
They always seem to forget that if you raise someone on 7.50 to £10 then those on £10 currently (presumably because they have more responsibility or seniority/experience) will then want a 33% increase to to maintain their differential.
Or is McDonnell quietly suggesting we should all be commies and get the same no matter what (except for him of course!)
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They always seem to forget that if you raise someone on 7.50 to £10 then those on £10 currently (presumably because they have more responsibility or seniority/experience) will then want a 33% increase to to maintain their differential.
Or is McDonnell quietly suggesting we should all be commies and get the same no matter what (except for him of course!)
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His speech seemed to me just to be saying things the audience wanted to hear rather than anything that was workable and affordable. All these statements like we will put an end to tax evasion, no workers will be on zero hours contracts ( I like mine), an end to poverty pay, no more employers like Mike Ashley, make the bankers and speculators pay not the workers. It all sounded so easy
A living wage is very difficult to define anyway. It depends on how many hours you work, what travel costs you have, what art of the country you live in, whether you are living with parents, living alone, supporting a partner, supporting children.
Whilst i support the minimum wage now there definitely comes a point where jobs will be lost so rather than getting say £8 an hour some will find themselves at the job centre. Already care homes for example are finding they cannot afford to pay the new rates
Whilst i support the minimum wage now there definitely comes a point where jobs will be lost so rather than getting say £8 an hour some will find themselves at the job centre. Already care homes for example are finding they cannot afford to pay the new rates
I found his speech insulting.
For him to think that people would be so gullible, does he think we have just landed from outer space.
£10.00 per hour would be welcome I'm sure, but lets get serious, it wont happen in the next 5 years, or more, and I doubt Labour will be in power for a lot longer than that!
For him to think that people would be so gullible, does he think we have just landed from outer space.
£10.00 per hour would be welcome I'm sure, but lets get serious, it wont happen in the next 5 years, or more, and I doubt Labour will be in power for a lot longer than that!
More people will have more disposable income which will stimulate the economy.
Inflation will not result from the very low paid getting slightly more.
We are currently in a period of very low inflation, bordering on dangerous deflation. This measure will not increase inflation, but even if it did, it would actually be beneficial for the economy.
Inflation will not result from the very low paid getting slightly more.
We are currently in a period of very low inflation, bordering on dangerous deflation. This measure will not increase inflation, but even if it did, it would actually be beneficial for the economy.
FR article is behind a paywall, so here it is
The growing danger of deflationthreatens to derail the global economic recovery, Christine Lagarde, managing director of the International Monetary Fund, said on Wednesday as she stressed that the world had yet to put the financial crisis behind it.
“With inflation running below many central banks’ targets, we see rising risks of deflation, which could prove disastrous for the recovery,” said Ms Lagarde, in a speech at the National Press Club in Washington. “If inflation is the genie, then deflation is the ogre that must be fought decisively.”
With central bankers afraid even to mention the word “deflation”, Ms Lagarde’s remarks make her the first high-profile policy maker to give warning that extremely low inflation in rich countries could result in the kind of falling prices that have dogged Japan’s economy for two decades.
Slow inflation could allow central bankers to keep monetary policy exceptionally loose, even as employment picks up in countries including the US and the UK.
“Central banks should return to more conventional monetary policies only when robust growth is firmly rooted,” said Ms Lagarde.
Inflation in the UK has fallen back to the Bank of England’s 2 per cent target for the first time in years, while the US consumer price index is up by only 1.2 per cent on a year ago. But the eurozone is at greatest risk, with inflation falling to only 0.8 per cent in December and unemployment still stuck at 12.1 per cent.
A slide into absolute deflation could discourage consumption and investment as it raised the real cost of borrowing and made monetary policy less effective.
Ms Lagarde’s comments were echoed by Charles Evans, president of the Chicago Fed. “The recent news on inflation has not been good,” he said in a speech on Wednesday. “Inflation is too low and is running well below the FOMC’s 2 per cent target.”
Ms Lagarde said that the overall economic picture was encouraging. “This crisis still lingers. Yet, optimism is in the air: the deep freeze is behind, and the horizon is brighter,” she said.
“My great hope is that 2014 will prove momentous; . . the year in which the ‘seven weak years’, economically speaking, slide into ‘seven strong years’.”
She said that the global economy had strengthened at the end of 2013, but “is still stuck in low gear”. “This means that the world could create more jobs before we would need to worry about the global inflation genie coming out of its bottle."
In the US, she said, growth was picking up, but “it will be critical to avoid premature withdrawal of monetary support, and to return to an orderly budget process, including by promptly removing the debt ceiling threat”.
Ms Lagarde said that the eurozone “is turning the corner from recession to recovery”, but that “unemployment is still worryingly high”.
She said that the European Central Bank could do more to help. “Targeted lending, for example, could help reduce financial fragmentation. The forthcoming review of asset quality and stress tests can also help, but only if they are done in an even-handed and credible manner.”
The growing danger of deflation threatens to derail the global economic recovery, Christine Lagarde, managing director of the International Monetary Fund, said on Wednesday as she stressed that the world had yet to put the financial crisis behind it.
The growing danger of deflationthreatens to derail the global economic recovery, Christine Lagarde, managing director of the International Monetary Fund, said on Wednesday as she stressed that the world had yet to put the financial crisis behind it.
“With inflation running below many central banks’ targets, we see rising risks of deflation, which could prove disastrous for the recovery,” said Ms Lagarde, in a speech at the National Press Club in Washington. “If inflation is the genie, then deflation is the ogre that must be fought decisively.”
With central bankers afraid even to mention the word “deflation”, Ms Lagarde’s remarks make her the first high-profile policy maker to give warning that extremely low inflation in rich countries could result in the kind of falling prices that have dogged Japan’s economy for two decades.
Slow inflation could allow central bankers to keep monetary policy exceptionally loose, even as employment picks up in countries including the US and the UK.
“Central banks should return to more conventional monetary policies only when robust growth is firmly rooted,” said Ms Lagarde.
Inflation in the UK has fallen back to the Bank of England’s 2 per cent target for the first time in years, while the US consumer price index is up by only 1.2 per cent on a year ago. But the eurozone is at greatest risk, with inflation falling to only 0.8 per cent in December and unemployment still stuck at 12.1 per cent.
A slide into absolute deflation could discourage consumption and investment as it raised the real cost of borrowing and made monetary policy less effective.
Ms Lagarde’s comments were echoed by Charles Evans, president of the Chicago Fed. “The recent news on inflation has not been good,” he said in a speech on Wednesday. “Inflation is too low and is running well below the FOMC’s 2 per cent target.”
Ms Lagarde said that the overall economic picture was encouraging. “This crisis still lingers. Yet, optimism is in the air: the deep freeze is behind, and the horizon is brighter,” she said.
“My great hope is that 2014 will prove momentous; . . the year in which the ‘seven weak years’, economically speaking, slide into ‘seven strong years’.”
She said that the global economy had strengthened at the end of 2013, but “is still stuck in low gear”. “This means that the world could create more jobs before we would need to worry about the global inflation genie coming out of its bottle."
In the US, she said, growth was picking up, but “it will be critical to avoid premature withdrawal of monetary support, and to return to an orderly budget process, including by promptly removing the debt ceiling threat”.
Ms Lagarde said that the eurozone “is turning the corner from recession to recovery”, but that “unemployment is still worryingly high”.
She said that the European Central Bank could do more to help. “Targeted lending, for example, could help reduce financial fragmentation. The forthcoming review of asset quality and stress tests can also help, but only if they are done in an even-handed and credible manner.”
The growing danger of deflation threatens to derail the global economic recovery, Christine Lagarde, managing director of the International Monetary Fund, said on Wednesday as she stressed that the world had yet to put the financial crisis behind it.
It is a nonsense to claim you are back to square one. The reality is that things need to settle down or else the minimum simply goes up to keep the real value of the minimum wage. What some don't get is that the differentials have to reduce and companies pay fractionally less dividend to investors.
Alternatively, it is all very laudable of the abolitionists but don't they get that it is just inflationary to pay workers rather than keep slaves, and it is only a short time before you are back to square 1, but with some inflation ?
Alternatively, it is all very laudable of the abolitionists but don't they get that it is just inflationary to pay workers rather than keep slaves, and it is only a short time before you are back to square 1, but with some inflation ?
Ahh Christine Lagarde writes for the Financial (behind the) Times. Not long ago both were advising of financial disaster if Brexit was successful. They clearly have not gone away and still vomit the bile. Perhaps they need to persist or forfeit the"bonus" they were no doubt promised by the EUSSR to lobby for the pyramid scheme. Inflation always has been a labour government tool. Borrow massive and hope for interest rate rises like a giant national casino. Then when you go bust, just leave a note saying sorry all the money has gone in the petty cash box. Then spend the next few years screaming savage wicked cuts at the people sorting out the mess.
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