Key Election Issue discussion - Minimum Wage

[Duke Fame]

Duke doesn't need to worry about the Greens and their 12 quid an hour - as we all know, that ain't gonna happen!

Well at the moment we taxpayers are paying for it, and thereby subsidising the staff costs of those employers who can't or won't pay people enough to live on.  We pay for it through tax credits, housing benefit and all the other in-work benefits which are costing us billions a year. So increasing the National Minimum Wage is one way of reducing the benefits bill, although it is likely to lead to an increase in unemployment, so the net reduction in total benefit payments would not be as great. 

 
Makes good sense as long as we are prepared either to raise taxes in order to pay for a big increase in the cost of tax credits etc, or abolish in-work benefits.

Well, our nmw earners live with their parents and have more spare money than you & I.

The idea of more money being in the economy creating more spending in the long run is trumped by simple economics as it simply devalues the currency & pushes up inflation.

If I'm paying the lowest paid staff £8, what should I pay the manager currently on £8?

Not thought through

[Dave]

The greens have promised a minimum wage of £12 an hour

Duke doesn't need to worry about the Greens and their 12 quid an hour - as we all know, that ain't gonna happen!

but who is paying for this?

Well at the moment we taxpayers are paying for it, and thereby subsidising the staff costs of those employers who can't or won't pay people enough to live on.  We pay for it through tax credits, housing benefit and all the other in-work benefits which are costing us billions a year. So increasing the National Minimum Wage is one way of reducing the benefits bill, although it is likely to lead to an increase in unemployment, so the net reduction in total benefit payments would not be as great. 

 

Let the market dictate wages, not government,

Makes good sense as long as we are prepared either to raise taxes in order to pay for a big increase in the cost of tax credits etc, or abolish in-work benefits. 

[tonysheldon]

Only connect. Perhaps you are missing something here. If people had a little more money in their pockets they would have more money to spend in your shops which would elevate your profits and then, as I am sure you are desperate to do, you would be able to pay your staff a decent wage. Poorer people tend to spend any extra purchasing power locally, boosting the local economy, unlike richer folk who buy large imported cars and foreign holidays.
Also, by paying low wages, you are being subsidised by the tax-payer through benefits.  Remember, the bulk of benefits are paid to low-wage earners.   

[Duke Fame]

I thought I'd be grown up and start a proper thread.

The greens have promised a minimum wage of £12 an hour, Labour £8 an hour which sounds lovely but who is paying for this? My business competes because we do things more efficiently than others, we have skilled staff who are motivated and valued but I must compete on a world stage and although my employees earn more than minimum wage, if they can earn £8 an hour in a low pressure role in the local authority, they will rightly want a higher wage in the more demanding environment of the productive sector. My wife runs a couple of retail shops, retailers struggle to pay the current minimum wage, a quiet week will see us dip into our own pockets to pay wages and it’s been a real struggle, business takes priority over holidays or leisure time and a look at the high street, especially in Stockport tells you that many retailers have not been able to meet even the current minimum wage, £8 or £12 will see all but the largest retailers disappear. Let the market dictate wages, not government, these lovely sounding promises have not been thought through.