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LET’S GO WITH THIS

By Pete Moore On August 10th, 2019

Pay rates have effectively fallen for the UK’s lower and middle income earners since 2010, research suggests.

Workers in jobs paying between £9.56 and £12.73 an hour have seen their “real” wage drop 1% since 2010 after inflation is accounted for, analysis by the Trades Union Congress (TUC) found.

Such things are extremely difficult to calculate, but let’s assume that the TUC is correct with its numbers. No-one should be surprised. When you flood a country with millions of lower value immigrants then you depress wages. There is a solution, which is to leave the EU, be choosy about who comes in, see capital investment rise, productivity improve and, therefore, wages rise.

But the TUC campaigns against that. Like the Labour Party, it long ago shrugged off any concern for the working classes.

26 Responses to “LET’S GO WITH THIS”

  1. See capital investment rise, productivity improve

    I’ll bite, how do you envisage those two things happening?

  2. See capital investment rise, productivity improve

    I’ll bite, how do you envisage those two things happening?

  3. Leaving the EU may be good, but that move won’t attract any new investment. Quite the opposite.

  4. How will paying people more money for low paid work raise productivity? There is absolutely no evidence for that. And plenty of evidence for the contrary. Paying people more for the same labour value will reduce productivity, not raise it.

  5. Leaving the world’s biggest single market – the greatest collaborative multi national economic achievement in the modern era is not good not at all. It is a regressive nationalistic stupid narrow minded impulse which will do nothing but harm the U.K. it wasn’t a decision taken by professionals who have intelligent knowledge about how such things work. It was a decision voted on by the ignorant but easily deluded masses.

  6. Seamus –

    It’s the other way round. Higher productivity leads to higher wages.

  7. Higher productivity leads to higher wages. However higher wages do not lead to higher productivity. What you are suggesting is that, by banning or reducing foreign labour, there will be higher wages for the same work – which will lower productivity.

  8. Seamus –

    I’m saying that choking the supply of available labour will lead to higher prices (wages) for that labour. This is incontrovertible.

    I’m also saying that choking the supply of available labour induces firms to invest in capital equipment, to become more productive. This also leads to higher wages.

    I did not say that higher wages lead to higher productivity.

  9. “I’m also saying that choking the supply of available labour induces firms to invest in capital equipment, to become more productive.”

    Not necessarily. It will likely lead to some automation. It will also likely lead to some firms going bust, or choosing not to engage in the same activities that they previously were doing. It will also likely lead to some firms increasing their wages, thus lowering productivity.

  10. £350m a week extra to the NHS message on the bus was aimed at the likes of Pete, who have ‘a little knowledge is a dangerous thing’ grasp of economics.

  11. smcgiff –

    I can assure you, suggesting that the NHS could have £350m a week extra to waste did not sway my vote.

  12. Pete used to believe in the magical powers of the free market and capitalism. Now he believes in high level government state control of the availability of Labour used to manipulate wages,

  13. On the contrary Colm, there is nothing free market or capitalistic about mass immigration. It imposes vast costs and burdens on the host, invariably diminishes their liberties and leads, in the end, to a weakening of electoral influence and disenfranchisement.

  14. But the TUC campaigns against that. Like the Labour Party, it long ago shrugged off any concern for the working classes.

    Yes Pete, both the TUC and Labour became shameless shills for the EU in the 1990s. That meant embracing free movement of labour which they knew would result in downward pressure on wages. This put the TUC on the same page as the big employers in the CBI who demand an endless supply of cheap labour from the EU. That’s what you would expect from the bosses, but not the unions. For shame.

  15. Never ignore the power of the, ‘Self-checkout’. Rather than import cheaper labour, why not get the shopper to do it themselves ?

  16. Colm, on August 10th, 2019 at 6:18 PM Said:

    Leaving the world’s biggest single market……

    Japan, China, Korea – all seriously damaged by not being in the EU

    The world’s single biggest market is idiots

  17. Is that all you can come back with Allan. Mentioning an utterly irrelevant reference to three other countries. Poor stuff.

  18. Colm – China, Korea and Japan are not in the EU. Can you explain how these countries are damaged by not being in the EU?

  19. What part of Europe are those countries in

  20. Can you explain where I said any country in the world can only be successful if it is a member of the EU. It’s a complete nonsense argument you are advancing. I am of course referring to the specific fact that the U.K. has spent decades shaping its economic framework within the European single market and it makes no economic sense to withdraw from it and all of sudden make trade harder more expensive and with greater bureaucratic restrictions with our 27 closes national neighbours . The only reason for it is to satisfy a stupid nationalistic desire to prompt a hostile disruptive frictional relationship with Europe. There is absolutely no economic sense behind it.

  21. There is absolutely no economic sense behind it.

    There is every economic sense. 90 per cent of British firms do not export to EU countries, but all British firms must follow the backward rules.

    Exports to EU countries account for just 12 per cent of GDP, but all British firms are hampered by the backward rules.

    The idea that we must be wholly governed by foreigners if we are to trade with them is the idea of morons.

  22. New post Brexit fifty pence coins released:

    https://news.images.itv.com/image/file/1260909/img.jpg

  23. This time next year You’ll be able to buy five of them for a Euro 😉

  24. But it still has the thistle?

  25. It didn’t say how far post Brexit it was Noel…..

  26. Seamus,

    “What you are suggesting is that, by banning or reducing foreign labour, there will be higher wages for the same work – which will lower productivity.”

    Yes and he knows it. Jobs are a cost. He proposes to increase that cost by reducing competition. And therefore destroy wealth.

    And the competition that it would restrict is mostly not even with what he would consider “British” workers. Pretty much everywhere, recent immigrants mostly compete with each other and/or the previous bunch of immigrants for work.

    As for the costs of immigration, to believe that as well as the ‘higher wages’ thing, you have to believe in “schrodingers immigrant”. I.e., cheap and hyperproductive labour that is taking all the jobs while at the same time too lazy to work and hoovering up benefits.

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