That Kier fella is starting to talk sense.

[Vinty]

The problem with your simplistic scenario

I deliberately made it as simple as possible so you could understand it.

 

[ellal]

No, it's you that's the absolute rubbish around here.
I gave the reference.

All you did was point out the minimum wages...

No relation to the actual relative cost of living...

And when all factors are taken into account the UK fares rather badly!

For example, funnily enough in most of the countries that have some of the lower minimum wages, there is far higher levels of home ownership than the UK. Why is that?

Oh that's right, it's the obscenely high housing costs in the UK thus a higher cost of living!

 

[Pat ex]

I deliberately made it as simple as possible so you could understand it.

And there was me thinking it was the total sum of your understanding of the situation.
Please do try to consider other relevant factors and influences next time.
We can always ask for greater details when we're sure we can accommodate it.

 

[Vinty]

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)

Why do you insist on going off on irrelevant tangents about immigration which have nothing to do with my original point.
My original post was in response to a claim that higher wages lead to inflation.
My reply was that raising wages doesn't always lead to inflation.

Why does productivity matter for 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.
If productivity goes up, then company profits go up which means higher wages can be paid without the company having to raise prices.

 

[Pat ex]

...
My reply was that raising wages doesn't always lead to inflation.

Too simplistic again.

Why does productivity matter for 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.
If productivity goes up, then company profits go up which means higher wages can be paid without the company having to raise prices.

Cheaper unit price may not automatically lead to reduction in prices.
Windfall profits?