Friday, January 03, 2014

Stop the inward flow of cheap labour

At last Polly Toynbee is seeing what many people have warned about for years:  http://www.theguardian.com/commentisfree/2014/jan/02/curb-immigration-pay-workers-living-wage

Unlimited supply of labour will drive down the price of labour until it is at third world levels.

Bad though the situation is, it is going to get far worse over the next ten years unless action is taken.

However the solution of the left (the fatuous call for employers to "pay a living wage") is unrealistic to the point of dishonesty.

The unscrupulous employers are not obeying employment law NOW, why on earth should we suppose that they would obey new laws.  And is this not a typical Blairite attitude - let's just pass another law and the problem will be solved.  Laws can of course be enforced by an all-embracing surveillance culture armed with draconian powers, but I can't see this happening under any of the available options for the next government.

The only practical solution is to stop the inward flow of cheap labour.

Stop it completely and stop it immediately.

Then as the economy grows employers will have to offer higher wages and other incentives (company pensions, longer holidays, continuing training and development, subsidised share options, company cars, subsidised season tickets etc) to attract workers to their companies.

And if they don't offer theses incentives they must either automate (which will happen anyway), move overseas (and good riddance to bad employers), or go out of business.

We know this will happen as this is exactly what did happen in the post-1945 period when labour was scarce and before open-door immigration began to undermine the United Kingdom wages structure.

And on a wider political note, is it not slightly alarming that Ed Miliband seems to be leading his party towards adopting a prices and incomes policy?  I thought that idea was completely discredited?  And please don't suggest stronger unions - we all know the sort of bullying and blackmail that will lead to.

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