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Thursday, 29 October 2009

TUC calls for £6 an hour minimum wage

I did some work on NMW for work.
During that time I came across a very sobering statistic, which sadly I don't have a link for.
I checked it out and they were some right wing nut jobs, sadly.
The stat is that for every 1% rise in NMW, employment falls by 0.1%.
Now it's possible that in a time of booming employment that's not a problem, but when even fine, upstanding Bearded Socialists can't find work, that's a big worry.

Brendon Barber reckons that "raising the minimum wage has already helped thousands of families without causing significant job losses"
I work on NMW for 6 months, it ain't fun. But better that than nothing (as i'm about to find out).
Sorry BB, but 'significant job losses' is not a price to pay.
I think NMW should be linked to average earnings (maybe average prices, certainly one of the two) and the personal tax threshold should be the level of NMW when working full time e.g. £5.80 NMW X 35 (hour week) X 52 (week year) = £10556. Therefore, no-one one NMW should pay income tax and everyone else would get this amount tax free. The loss would be made up for by raising direct tax levels above this and imposing higher bands.
The TUC arguements are worthwhile morally, but fatally flawed ecnomically and would indead increase unemployment. While some would gain more in an hour, others would be left behind.

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