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All economics happens at the margin

Rachel Reeves’s plan to raise the minimum wage for young people will push up the cost of hiring them by almost £7,000.
Analysis by the Institute for Fiscal Studies (IFS) warned that employers faced a 40pc real increase in costs under Labour’s proposals to scrap the youth rate of the minimum wage.

There will be some of those youngsters who are worth the extra £7k a year. There will be some who are not. Those who are not will not get a job.

Well done, eh?

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Boganboy
Boganboy
2 months ago

Of course, no doubt the government will then have to put them on the dole.

Interested
Interested
2 months ago

It actually is well done – if your goal is to bring about some form of 21st century communism, or certainly state control of everything, the first few things you need to do are

  • smash private business
  • destroy the education system so that you have a country which can no longer read Peter and Jane, never mind Shakespeare, and can no longer add up or divide, never mind grasp basic physics and algebra
  • create a disaffected and increasingly angry younger population
  • divide families
  • divide the country
  • create fear and a semi-police state
  • control the police and military by weeding out ‘bad apples’ and replacing a once-sensible senior office cadre filled with your own subscribers
  • control the narrative via control of the media and social media
  • hand over ostensible control of your country’s laws such that you can sort-of-semi-plausibly say ‘there’s nothing we can do about it, we signed up to the ER/UN/ECHR/WHO/ICPG so we have to go along with this’
  • infiltrate once-politically sound parties and fill them with weak sauce leftists
  • invent new insults (‘racism’ ‘sexism’) and associated laws which either shut up your opponents or create sort-of-semi-plausible grounds for their arrest and incarceration
  • import millions of new voters for the quasi democratic final stages of your scheme

You might also want to ration food and make housing and ultimately bank accounts dependent on obedience.

I’m not saying this is their grand plan, and has been (when you look back at what has happened) for the last forty or fifty years, maybe longer, because I don’t have a state-sanctioned authoritative dictionary to hand, but things are going pretty much how they would if it were.

PiP Supreme Leader
PiP Supreme Leader
2 months ago

It’s a race to the bottom. (No, that is not a snide allusion to Peter Mandelbum.)

Will we become a People’s Democratic Republic before we become an Islamic Republic?

Baron Jackfield
Baron Jackfield
2 months ago

We certainly won’t afterwards!

andyf
andyf
2 months ago

“Those who are not will not get a job.”

Unfortunately many who might be worth that 7K won’t get the job because there is no tangible way of deciding which when interviewing a young person with little experience. It becomes easier to take the cautious route and not even interview those who are young without experience.

john77
john77
2 months ago
Reply to  andyf

Thanks to the new Employment Rights Act it will be near-impossible to sack honest incompetents so potential employers are disincentivised from hiring anyone without a successful track record.

jgh
jgh
2 months ago
Reply to  john77

And you don’t have the opportunity to build a successful track record without having a successful track record.

Norman
Norman
2 months ago
Reply to  jgh

Everyone will have to join Equity.

Ducky McDuckface
Ducky McDuckface
2 months ago
Reply to  john77

Oh God, we’re turning into the French.

jgh
jgh
2 months ago

“How dare! you put a worth on young people, BIGOT!!!!”

Agammamon
Agammamon
2 months ago

And tons of the ones that are worth 7k more will lose their jobs because *the work they’re doing* isn’t worth 7k more.

Stonyground
Stonyground
2 months ago

Meanwhile Morrisons have robots cleaning the floor in the supermarket aisles.

Bongo
Bongo
2 months ago

The best way to view an increase in the minimum wage is as an increase in the national illegal wage. It’s now against the law for consenting adults 21+ to agree to exchange their labour for money consensually in the £0.01p-£12.70p p/hr range. Lower for younger ages but the point still stands imv that it’s an illegal wage band.
And if the market price of entry level labour is less, then only the illegal market will offer it.
The jails are full Rachel. Is it possible for you to hate even more the public voluntarily agreeing their own terms?

The Original Jim
The Original Jim
2 months ago

Given a minimum wage job now sets the employer back the best part of £30k (assuming they have used up their Employment Allowance against employers NI on other employees) its doubtful that any 18 year old could possibly add that much value with their efforts.

BlokeInBrum
BlokeInBrum
2 months ago

I happen to know of a couple places near me where the staff are earning considerably less than minimum wage.
Because they are immigrants they are not in a position to complain.
On the other hand the business that they’re in wouldn’t be viable otherwise, given the onerous taxes and financial pressures small businesses operate under.
It all leads to an erosion of belief in The Law and an increase in the black economy. Similar to how most smokers I know buy tobacco and cigarettes from *ahem* slightly less than legal sources.
If the Law as set out by retarded politicians is contrary to reality, then reality will win through eventually. We need better politicians.
As a large proportion of the country keeps voting for idiot politicians who offer them ‘free’ stuff we are screwed.
We are, as a nation, slowly but surely turning into a third world shithole.

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