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How would pushing up labour costs help those on low wages when it drives an employer into bankruptcy?
Many, many business are on the edge in this recession, indeed even in the best of times many business work on tight margins and under capitalisation is a common problem. All this 'living wage' stuff is just another daft idea to drive the UK deeper into recession.
A far better way to help to the less well off is what you might describe as 'counter intuitive' it is to do away with the tax credit system and the minimum wage while having much tighter controls over immigration. Cutting other state benefits for those of working age and able to work would also help.
The low paid are best helped by market forces driving up wages not subsidy or benefits.
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