- The increase returns people to where they were before they lost out. Hardly a pay rise!
- It is also a pay rise for everyone whether they were winners or losers under the 10p tax disaster and u-turns. Over compensating again.
- Employers have to find the money, not Gordon and the Treasury, so a big boost for government coffers.
- As employers and employess pay national insurance contributions of 23.8% (11% paid by the employee and 12.8% by the employer) and employees pay income tax, raising the minimum wage actually raises tax receipts slightly.
- Insisting employers pay more for staff, during a recession/downturn is poor strategy. Jobs will be cut, they can't not be.
Of course, with all of this economics stuff, CU forgets a rather crucial human element to this.
People rent out their labour to an employer. Some people's labour is worth less than other people's. Some people's labour is worth almost nothing. At present, we have truly horrific figures of unemployment amongst the young and the unskilled: those very people whose labour is worth the least.
So what Gordon is proposing to do is to ensure that anyone whose labour is worth less than £5.73 per hour will never, ever, ever get a fucking job.
Way to help the poor and the disadvantaged, you fucktarded monocular cunt...