The Labour Party just announced proposals to increase the UK minimum wage to £10 per hour.
Of course, Labour has many blind spots when it comes to economics. The “party of the workers” doesn’t understand that smaller businesses will stop hiring and will instead bring in automation where possible – and many firms may even go bust.
Nor does Labour understand that those businesses able to continue trading will merely increase prices of their services and goods to consumers. Think too about care home staff, many on minimum wage and overworked due to cutbacks from existing wage legislation.
Anyone who knows simple arithmetic (let alone economics) realises that a company with, say, ten low-skilled employees will have to make £100 an hour to cover their wages – and much more than that in order to cover business overheads such as renting premises, business rates, stock purchase, etc, etc.
None of this should come as any surprise. UK Labour’s Leader Jeremy Corbyn has never held down a job outside of politics let alone run a business. Indeed, he did not even complete his higher education course.
Click on the image below to read the Evening Standard story.