Cable Forum - View Single Post

Xaccers · 21-03-2010, 18:54

So lets run through a thought experiment shall we?
I run a business making life improving widgets, wages make up the largest proportion of my costs. I employ 100 people on the production line working 40 hours a week for minimum wage (£5.80/h)
The government hikes up the minimum wage to what? 20K? (median annual earnings)

My wage bill (excluding employers NI contributions) has gone up by nearly £800K

How do you propose I find the money to cover the increase?
Sack half the work force perhaps and bring in automation? Yum! Mass unemployment is always good isn't it?
Double the retail price of widgets maybe? But hang on, that would be hyperinflation, so ultimately those on minimum wage would be no better off, items would still cost the same proportion of their wages. Those over minimum wage would be much worse off meaning they have less money to spread around, stagnating the economy, perhaps causing it to collapse.

21-03-2010, 18:54	#59
Xaccers cf.mega poster Join Date: Jun 2003 Location: Milling around Milton Keynes Age: 35 Posts: 12,969	Re: british jobs for british workers. So lets run through a thought experiment shall we? I run a business making life improving widgets, wages make up the largest proportion of my costs. I employ 100 people on the production line working 40 hours a week for minimum wage (£5.80/h) The government hikes up the minimum wage to what? 20K? (median annual earnings) My wage bill (excluding employers NI contributions) has gone up by nearly £800K How do you propose I find the money to cover the increase? Sack half the work force perhaps and bring in automation? Yum! Mass unemployment is always good isn't it? Double the retail price of widgets maybe? But hang on, that would be hyperinflation, so ultimately those on minimum wage would be no better off, items would still cost the same proportion of their wages. Those over minimum wage would be much worse off meaning they have less money to spread around, stagnating the economy, perhaps causing it to collapse.