The perfect fumble
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- 3 Jun 2012
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stonerblue said:The perfect fumble said:inbetween said:The key thing is all those studies spout the same old rubbish, of course the country deserves a pay rise. I worked hard this week, I deserve a pay rise! Of course in an ideal world we would all be on footballers wages and England winning the world cup. The simple fact is fiscal responsibility is paramount for any business and many businesses right now are struggling. Cuts or no cuts, a strong private sector is what makes this country and we cannot ignore that fact, businesses should be encouraged wherever possible to make as much money as possible so that the profits are passed down to those who earnt it.
As usual with these type of studies and arguments from the left, it is an attempt to reinforce the us versus them which really only applies to the biggest companies who of course and rightly do everything for their shareholders. Then again there are hundreds of thousands of small businesses in this country who are struggling and actually in some cases almost exist just to sustain their workforce. Attacking these businesses is wrong and completely dismissive of who is really creating the jobs in this country.
Take your local pub, they might employ 3-5 people on the minimum wage. The minimum wage suggests it is a job no-one needs further skills for and this is right. Increasing the minimum wage by almost 30%, what do you think these pubs will do if their staff costs (the greatest cost) rises by 30%. Of course all they will do is say sorry but we will make do with 3 people instead of 5. This effect would trickle across the country and since we have also banned zero hour contracts too, literally NO-ONE will be able to find unskilled to semi-skilled work. You will see businesses stuck in the mud with spiralling staff costs due to legislation and instead of having high-paying jobs we will have zero jobs, this then inevitably increases the countries welfare costs.
This is why Labour were treated so badly in the business world and it is because Labour treated every single business in this country as a tax-evading right wing, city boy type lunatic. The vast majority of businesses in this country support people from a variety of backgrounds so that they are able to sustain a living and any government has to be pro-business as well as pro-people.
High wages can only be sustained by businesses making as much money as possible and fortunately we have a government now that will at least be as pro-business as possible.
I work with SMEs every day, and I mean every day, I know the environment they operate in.
As for....
businesses should be encouraged wherever possible to make as much money as possible so that the profits are passed down to those who earnt it.
We all want profitable companies, but take a look at how that profit has been divided up since the 80s.....
http://blogs.lse.ac.uk/politicsandpolicy/how-can-the-uk-boost-the-wage-share/
"The wage share – wages expressed as a share of total national income – has fallen since the early 1980s, highlighting the decoupling of earnings from output and accounting for a third of the decline in median wages relative to GDP in the UK over the last 35 years."
Which makes....
High wages can only be sustained by businesses making as much money as possible
Only half the equation.
As for labeling my posts as left wing rubbish, grow up, this is basic economics, as the LSE article outlines. Wages as a percentage share of total national income have declined these last thirty five years. In other words as the profits cake has grown the wages slice has not grown at the same rate.
As the article concludes....
" the danger with the current trajectory of falling real wages which the UK economy has slipped into is that, with labour becoming ever cheaper in real terms, the “low road” route becomes more and more attractive to employers as an alternative to capital investment. In effect, falling real wages are a driver for reduced innovation and productivity. In this scenario the UK economy is likely to become increasingly stagnant and any growth that does take place is unlikely to show up in workers’ living standards."
Even Cameron acknowledges this, he knows with an economy so heavily dependant on consumption that squeezing wages screws us all in the end....
David Cameron tells bosses to give workers a pay rise.....
<a class="postlink" href="http://www.telegraph.co.uk/news/politics/david-cameron/11402042/David-Cameron-tells-bosses-to-give-workers-a-pay-rise.html" onclick="window.open(this.href);return false;">http://www.telegraph.co.uk/news/politic ... -rise.html</a>
"The Prime Minister will order businesses to give staff a pay rise, claiming that falling costs mean firms have more cash to reward their employees"
In other words he's telling businesses, you've got the cash, stop trousering an ever increasing share of profits and let a bit more flow in wages to your workforce, in other words, can't we have a bit of trickle down?
Now you may not care, you might think the "risk takers" deserve an ever increasing share, that these "wealth creators" deserve as much of the profit as they can take, that workers are simply a factor of cost and every good businessman should bear down on cost as much as they can. That at least would be honest and we could debate it, but dismissing any critique as left wing rubbish and taking this "common sense no nonsense" high ground stance doesn't fool anyone but yourself.
Not everything is black and white you know? I've worked in the private sector all my life, I've a pretty good idea how things work. You don't have to be Arthur Scargill to want higher wages. We both, I hope, want higher productivity, more skilled jobs and more of our people trained to take them.
Where you and I might disagree is how big a slice of the profit cake should be taken in wages, but I refuse to take seriously anyone who thinks that because I support Labour, I clearly must spend all my time in a smoke filled cellar dreaming up nefarious schemes to undermine capitalism.
That's a great post fumble.
And i have to say, a round of applause for Cameron there.
Not even God's representative on Earth believes in "trickle-down"...
