Thursday, November 06, 2014

Polly Toynbee in the Guardian

"The number of people on the minimum wage has doubled since 1999: it is becoming the norm not the floor" says Polly Toynbee in the Guardian:  http://www.theguardian.com/commentisfree/2014/nov/04/low-pay-living-wage-labour-ed-miliband

And was this not inevitable given the irresponsible expansion of the labour force in the United Kingdom?  If you treat labour as a commodity and allow millions of extra labour units into the country was it not inevitable that the price of labour would fall?  Does Ms Toynbee doubt that if the import of labour units was absolutely stopped the price of labour would immediately start to rise with employers competing (as they did in the 1980s) to attract workers with higher wages, non-contributory final salary pensions, more holidays, free lunch vouchers and canteens, interest-free or completely free season tickets, company cars etc ?

Polly Toynbee tells us the answer to the problem is a statutory incomes policy (the "living wage").  This is not credible without an associated prices policy.  It is possible that recent advances in digital technology make a prices and incomes policy possible now when it farcically failed in the 1970s, but I doubt it.

The answer is to stop immigration, but Labour is unable to admit this.

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