That Kier fella is starting to talk sense.

[carmanmemoranda]

Let’s just put the minimum wage up to a grand a week then. Dont worry about working hard at school, leaning a trade or working your way up in life, just start out on the maximum. Yeah, that’ll do it, problem sorted.

putting the minimum wage up, raises the prices. Nobody is better off.

I know it's difficult to get your head around it, but it's the cost of living that needs addressing. Until Families can earn enough to live on without benefits then all that changes is prices.

or just keep paying benefits and accept we need more workers. Now, where can we get them from ?

 

[Vinty]

putting the minimum wage up, raises the prices. Nobody is better off

That is not necessarily true.
If the average productivity of the worker goes up in line with higher wages, then inflation may be avoided.

 

[noseall]

That is not necessarily true.
If the average productivity of the worker goes up in line with higher wages, then inflation may be avoided.

If.

 

[Vinty]

If.

If you operate a low wage business model, then there is no incentive to increase productivity.
This the downside of relying on cheap imported labour.
A bloke in a mechanical digger can dig a hole faster than a bloke with a shovel, does that mean the bloke with the shovel is lazier than the bloke using the mechanical digger.
Anyone can work hard but you have to work smarter as well to make money.

Does increasing productivity reduce inflation?


When a workforce is more productive it produces more goods and services, and at a lower cost per unit. This means there is a greater supply of these things, which puts downward pressure on prices and is therefore associated with lower inflation.9 Jun 2022

 

[noseall]

If you operate a low wage business model, then there is no incentive to increase productivity.
This the downside of relying on cheap imported labour.
A bloke in a mechanical digger can dig a hole faster than a bloke with a shovel, does that mean the bloke with the shovel is lazier than the bloke using the mechanical digger.
Anyone can work hard but you have to work smarter as well to make money.

Does increasing productivity reduce inflation?


When a workforce is more productive it produces more goods and services, and at a lower cost per unit. This means there is a greater supply of these things, which puts downward pressure on prices and is therefore associated with lower inflation.9 Jun 2022

Good sales pitch. Meanwhile, back on the shop floor...

 

[gant]

Thatcher had good way of keeping wages down, she put over 3 million on the dole by destroying local industry in many communities and left them to rot.
Them people who were left to rot didn't think it were fair, them who voted thatcher must have thought it was price worth paying so turned a blind eye to their predicament.
Life's not fair who'd a thunk it.

 

[Pat ex]

If you operate a low wage business model, then there is no incentive to increase productivity.
This the downside of relying on cheap imported labour.
A bloke in a mechanical digger can dig a hole faster than a bloke with a shovel, does that mean the bloke with the shovel is lazier than the bloke using the mechanical digger.
Anyone can work hard but you have to work smarter as well to make money.

The problem with your simplistic scenario is that the man using the digger is working with far less effort than the man with the shovel, and the investment in the digger did not originate from the worker. It originated from the firm's owner, so the owner argues that he should benefit from the investment, and the increased productivity.

The change in business model cause a further "butterfly effect", the business owner becomes richer for less effort, thereby increasing the discrepancy between rich and poor.
You might argue the the business owner is working smarter, but the effect is the same - greater discrepancy between rich and poor.

Does increasing productivity reduce inflation?

Yes, if the richer people can now afford that which the poorer cannot.

When a workforce is more productive it produces more goods and services, and at a lower cost per unit. This means there is a greater supply of these things, which puts downward pressure on prices and is therefore associated with lower inflation.9 Jun 2022

But as the world's population increases it exacerbates the problem of the divide between rich and poor, i.e. fewer opportunities for some, and advantageous opportunities for others, which then creates discrepancies between societies.

 

[noseall]

If the average productivity of the worker goes up in line with higher wages, then inflation may be avoided.

Which is not the same as raising the minimum wage threshold.

 

[Notch7]

If you operate a low wage business model, then there is no incentive to increase productivity.
This the downside of relying on cheap imported labour

When a workforce is more productive it produces more goods and services, and at a lower cost per unit. This means there is a greater supply of these things, which puts downward pressure on prices and is therefore associated with lower inflation.9 Jun 2022

You are trying to build a deeply flawed argument in justification for ending FOM or just not wanting immigration.

Starving an economy of a workforce is not conducive to raising productivity or growing the economy.



here’s a challenge for you Vinty, see if you can come up with a job where you think productivity would be raised by raising wages or improving efficiency (and bear in mind businesses won’t borrow millions to automate when borrowing is expensive and demand is falling)

 

[Notch7]

If the average productivity of the worker goes up in line with higher wages

Seriously?

 

[gant]

I can think of lots of jobs on piecework/ bonus, designed for a higher output.

 

[noseall]

Seriously?

He's still 'digging for Britain'.

 

[noseall]

I can think of lots of jobs on piecework/ bonus, designed for a higher output.

Different scenario, especially piecework. We're talking about the minimum wage threshold leading to higher prices.

 

[gant]

Minimum wages bring down wages.

 

[JP_]

putting the minimum wage up, raises the prices. Nobody is better off.

I know it's difficult to get your head around it, but it's the cost of living that needs addressing. Until Families can earn enough to live on without benefits then all that changes is prices.

or just keep paying benefits and accept we need more workers. Now, where can we get them from ?

Didn't a business owner give everybody, himself included, the same salary once, with great results?
Salaries are low to increase profits. Yes, some businesses are struggling, but many can afford to pay their staff more, but choose not to so the owners can live a more luxurious lifestyle while their workers are living in relative squalor.