Thursday, October 17, 2013

There is a very simple way of raising incomes in this country

Alan Milburn and the Social Mobility and Child Poverty Commission publishes a report on social mobility today:

Mr Milburn concludes that while work is "still very important", it is not a cure for poverty.

Which basically means he is saying nothing can be done (except a very limp appeal to employers to pay higher wages).

There is a very simple way of raising incomes in this country.

Close the labour market.  Stop the inward flow of cheap labour.  Ignore the howls of anguish from special interests and STOP entry into the country by cheapo foreign labour.

Then inevitably as labour becomes less plentiful employers will be forced by the market to offer more to attract workers to their companies (not just more in terms of wages and salaries but more in terms of benefits such as non-contributory pensions, free healthcare, free child care etc).

Of course this measure is impossible for Labour to do, and difficult for the Conservatives.

But you will not achieve any meaningful level of social mobility without it.

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