So what’s so wrong with labour shortages driving up low wages?

[journolud]

Bob, mate, get off your high horse and use it as a headphone podcast.

Brand HARDLY speaks.

It's INTERESTING.

Bloody Brand is everywhere!

 

[Fred_Quimby]

Increased wages with no increase in productivity will ultimately lead to inflation. Employers have the choice of absorb to increase or pass it on in increased prices. This could lead to, inevitably, a decrease in market share as it may increase to amount imported from countries that don’t have this problem and can pay cheaper wages. I am old enough to remember a thriving cotton industry and others, steel anyone(?), that have been outpriced by cheaper imports. Increased farming costs could, in the end, lead to a decline in farming as cheaper imports are sucked in.

Again an increased in wages without an increase in productivity in the case of HGV drivers and care workers can only lead to higher inflation. You can’t drive a truck any faster that it already is driven nor can you care for more than one person at a time.

Whilst there is a shortage of semi-skilled labour we will have to ‘suck it up’ and pay the price of under investment in semi-skilled workers.

 

[BobKowalski]

Bob, mate, get off your high horse and use it as a headphone podcast.

Brand HARDLY speaks.

It's INTERESTING.

Nah. If people don’t provide a summary of what the clip is about, I don’t watch or listen to it.

You want me to buy or invest my time, then make your pitch, bait the hook, show a bit of leg as it were.

Don’t show your actual legs, though.

 

[Bigga]

Nah. If people don’t provide a summary of what the clip is about, I don’t watch or listen to it.

You want me to buy or invest my time, then make your pitch, bait the hook, show a bit of leg as it were.

Don’t show your actual legs, though.

Actually because he only has a sentence or two, his guest is the interesting factor.

He has a LOT to say and I don't want to offer his viewpoint in short thrift as it wouldn't be fair nor truly accurate, rather discuss the conclusion to his point.

 

[metalblue]

That’s nice. Shame it’s bollocks. But then it’s the Telegraph.

Switzerland which is plugged into the EU system and has Freedom of Movement has the highest average wage in Europe. Approx 25% of the Swiss population are immigrants.

Germany, Denmark, to name but two, all have FoM and all have high wage economies. All 27 EU countries have FoM and all have differing economies with varying average wages. Domestic policies, cultural attitudes, stronger unions, better productivity. These impact wage levels.

Finally, we have a labour shortage. To fill a labour shortage you need more people. Restrict the supply of people and the economy starts to slow, productivity dips, shortages start to appear and people start fighting in garage forecourts for a sniff of petrol.

As a country we have become economically illiterate, but then the PM is a journalist with no fucking clue how business or a modern economy works, nor what it is like in the real world.

What Brexiteers are trying to do, having first denied there are supply chain issues, is to pretend that this is all part of the ’solution’ and ‘look everyone will get paid more’. Well, they won’t. Public sector workers are on a pay freeze. Haulage drivers will get a pay hike, so bin drivers get a job driving a truck and councils can’t find anyone to drive the bin lorry. And then you still have the problem of paying truck drivers more to deliver less because produce is not making it into the food supply chain because of a lack of labour.

Putting up trade barriers, imposing admin and red tape costs, crippling the agriculture sectors so that we have to import pork from Germany while culling pigs here, is an odd way to grow the economy and make everyone prosperous.

I would also point out the Leave campaign specifically said that none of this would happen. Brexit was only going to be a positive. Remember that? Happy days.

All completely meaningless unless you compare cost of living and net pay.

 

[bluethrunthru]

Differentials - very popular source of labour unrest back in the 70's - they will be making a comeback

 

[BobKowalski]

All completely meaningless unless you compare cost of living and net pay.

Then do it. Give it more context. Get the discussion rolling.

 

[hilts]

That’s nice. Shame it’s bollocks. But then it’s the Telegraph.

Switzerland which is plugged into the EU system and has Freedom of Movement has the highest average wage in Europe. Approx 25% of the Swiss population are immigrants.

Germany, Denmark, to name but two, all have FoM and all have high wage economies. All 27 EU countries have FoM and all have differing economies with varying average wages. Domestic policies, cultural attitudes, stronger unions, better productivity. These impact wage levels.

Finally, we have a labour shortage. To fill a labour shortage you need more people. Restrict the supply of people and the economy starts to slow, productivity dips, shortages start to appear and people start fighting in garage forecourts for a sniff of petrol.

As a country we have become economically illiterate, but then the PM is a journalist with no fucking clue how business or a modern economy works, nor what it is like in the real world.

What Brexiteers are trying to do, having first denied there are supply chain issues, is to pretend that this is all part of the ’solution’ and ‘look everyone will get paid more’. Well, they won’t. Public sector workers are on a pay freeze. Haulage drivers will get a pay hike, so bin drivers get a job driving a truck and councils can’t find anyone to drive the bin lorry. And then you still have the problem of paying truck drivers more to deliver less because produce is not making it into the food supply chain because of a lack of labour.

Putting up trade barriers, imposing admin and red tape costs, crippling the agriculture sectors so that we have to import pork from Germany while culling pigs here, is an odd way to grow the economy and make everyone prosperous.

I would also point out the Leave campaign specifically said that none of this would happen. Brexit was only going to be a positive. Remember that? Happy days.

Haha what a load of horseshit. You will need to shovel it yourself mind;-)

 

[hammocity]

Get ready for staggeringly high inflation which works well for those with big mortgages to pay as long as salaries increase as well.

The ones who suffer are those on fixed pensions with savings pots, they will see their income v expenditure being eroded. The younger people still won’t be able to get on the property ladder as house prices are always affected by inflation, rents will also rise.

Anyway, the boss of a local company turned up for work in a brand new Ferrari, one of the workers said “nice car boss”. He replied “yes it is, and if you work very hard I can buy another one next year”.

 

[Samidred]

That’s nice. Shame it’s bollocks. But then it’s the Telegraph.

Switzerland which is plugged into the EU system and has Freedom of Movement has the highest average wage in Europe. Approx 25% of the Swiss population are immigrants.

Germany, Denmark, to name but two, all have FoM and all have high wage economies. All 27 EU countries have FoM and all have differing economies with varying average wages. Domestic policies, cultural attitudes, stronger unions, better productivity. These impact wage levels.

Finally, we have a labour shortage. To fill a labour shortage you need more people. Restrict the supply of people and the economy starts to slow, productivity dips, shortages start to appear and people start fighting in garage forecourts for a sniff of petrol.

As a country we have become economically illiterate, but then the PM is a journalist with no fucking clue how business or a modern economy works, nor what it is like in the real world.

What Brexiteers are trying to do, having first denied there are supply chain issues, is to pretend that this is all part of the ’solution’ and ‘look everyone will get paid more’. Well, they won’t. Public sector workers are on a pay freeze. Haulage drivers will get a pay hike, so bin drivers get a job driving a truck and councils can’t find anyone to drive the bin lorry. And then you still have the problem of paying truck drivers more to deliver less because produce is not making it into the food supply chain because of a lack of labour.

Putting up trade barriers, imposing admin and red tape costs, crippling the agriculture sectors so that we have to import pork from Germany while culling pigs here, is an odd way to grow the economy and make everyone prosperous.

I would also point out the Leave campaign specifically said that none of this would happen. Brexit was only going to be a positive. Remember that? Happy days.

You can't seriously use Switzerland in any meaningful discussion on this. Strange place, speak multiple languages, never had a war for like 900 years and will keep money safe, secretly, for any tin-pot dictator or criminal if you please.

P.S. It really annoys me when someone immediately dismisses an opinion, just because of the source. If someone posted a well argued piece from the Daily Mirror or the Morning Star I would not just trash it because of where it came from, if it made sense.

This article is not in your words 'bollox' at all and as time goes on it will be proven more correct. I argued before 2016 (and after) that free movement of people was crazy when the different parts of Europe were so divergent, economically.