Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Alexander - you once again demonstrate your lack of economic understanding.
What you are suggesting will spark massive inflation, war over differentials and set the UK deeper into decline. This is not a matter of 'a slight one-off inflation' far from it. There will not be more money to spend in the economy at all, money will have become worth less and we will get more bankruptcies and unemployment. There would be a massive knock-on effect through the economy.
The only way to provide sustainable help to the low paid is through a booming competitive economy where demand for labour increases pushing up wages.
Artificial attempts to increase income such as tax credits and a minimum wage do not work and are counter-productive damaging the economy.
Some people, like you may prefer to go with what they see as simple and direct ways to solve the problem of low pay but inevitably such 'solutions' lead to more problems and have contributed significantly to our current problems.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
surely an increase in wages fuelled by demand for labour would cause high inflation making us less competitive?
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Howard - it reaches its own level that way, the wonderful working of the market to which we owe far superior living standards to places that have never had such freedoms. Our problems now stem from distorted markets in the UK thanks to government interference.
Go back and look at the history of economic development and you can see the role that free markets play in this.
Also read Hayek's The Road to Serfdom and/or Free to Choose by Friedman where you can see how the markets have done the job of improving living standards far more effectively than any government action.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
Yours is an idealistic theory, Barry, but would not work in current circumstances, nor in any circumstances really.
You do not want to grasp that to reduce people's income below the present minimum wage/working tax credits/housing benefits would send the economy reeling into more recession.
It would also be the end of the Tory party, so no, it won't happen.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Alexander, come off it.
Not idealistic at all, from hard practical experience with historical precedent. We can carry on going from crisis to crisis managing our relative economic decline as happened in the 50's 60's and 70's when interventionist policies dragged us down or we can grasp the nettle and do something that will really get the economy working again. It does of course mean throwing off the baggage of the EU to do it but I know you are not agin that!
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
Talking of EU, Barry, it has now been established that the majority of British people would vote to leave the EU.
Until recently, it was about 44-48% for leaving, with around 28-30% who'd vote to stay in. That left a 20% undecided margin.
But now, it would be an all-out victory for OUT OF THE EU at a referendum.
Time for a referendum.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Alexander - do not trust polls for something so important. Once a campaign starts and the BBC and Euro-fanatics start their scare stories the polls will revert to the default position, better safe than sorry and we would lose.
This is why an alternative vision is needed in a poll and not just a leap in the dark with an in/out vote.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
Who dares, wins, Barry.
Are you afraid to take part in a campaign?
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
I am realistic Alexander and I also want us out of the EU too much than to gamble recklessly with a single throw of the dice.
Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
barryw,what you want and what you get are two [2] differant things.and as the song go's you cant allways get what you want,[rolling stones].