Jeremy Corbyn wins economists’ backing for anti-austerity policies

Fella

BobQ wrote: »

That said, correct me if I am wrong, the Treasury delegates responsibility to the BoE by Act of Parliament and sets the policy it will follow. If the Government did not agree with the way the BoE was doing this they could repeal the Act.

The MPC is a puppet organisation, setup by Broon so he could distance himself from decisions that might sometimes upset some of the electorate (& cheerfully maintained by Osborne for the same reasons).

Devolving the responsibility for certain decisions, to a committee you get to choose the members of & as a last resort can simply disband, is simply a charade, designed to fool as many people as possible for as much time as possible.

CLAPTON

Thrugelmir wrote: »

Should other taxpayers continue to subsidise the low paid with WTC's?

WTC were a economically stupid invention of brown/blair, who clearly didn't see the enormous cost or the unintended consequences (or low wages and low productivity).

they need to be phased out ;

Thrugelmir

Fella wrote: »

No but I don't agree with your logic that the only way to reverse Brown's welfare state policies is to impose an artificially high minimum wage on the private sector.

If you want the private sector to pay enough that the state doesn't have to subsidise wages, implement policies that help the private sector make more profit, so they can afford to pay higher wages.

That would be the correct way to address the situation. Creating a high minimum wage (and incidentally choosing to rename it the living wage, when in fact that term relates to an entirely different thing) is pure politics & bad economics.

Not my logic it's GO's. Naive to think large Corporations will all operate to their benefit of their employees. Not least the US ones such as Amazon. Use of zero hour and short term contracts shows the extent to which they'll go to avoid their obligations. Twinned to the fact that the deficit has some way to go to be resolved. Then Government intervention is a necessity rather than an option.

CLAPTON

Thrugelmir wrote: »

Not my logic it's GO's. Naive to think large Corporations will all operate to their benefit of their employees. Not least the US ones such as Amazon. Use of zero hour and short term contracts shows the extent to which they'll go to avoid their obligations. Twinned to the fact that the deficit has some way to go to be resolved. Then Government intervention is a necessity rather than an option.

how did we all survive before Blair/Brown?

No, one doesn't expect Large corporations to operate in the best interests of their employees,
government's job is not to stop the productive part of the country expanding so that salaries are forced up by the demand for labour

Fella

Thrugelmir wrote: »

Not my logic it's GO's. Naive to think large Corporations will all operate to their benefit of their employees. Not least the US ones such as Amazon. Use of zero hour and short term contracts shows the extent to which they'll go to avoid their obligations. Twinned to the fact that the deficit has some way to go to be resolved. Then Government intervention is a necessity rather than an option.

OK then I don't agree with GO's logic

Obviously corporations, large or small, don't generally operate to the benefit of their employees. If they did they'd be collectives, not companies. But the answer isn't to try to force them to do so, that just doesn't work. The answer is to create an environment where paying higher wages makes economic sense for them. Especially now in a globalised world.

The naivety is surely thinking that you can force any company to pay a minimum wage, without a corresponding negative effect on the jobs available?

Thrugelmir

CLAPTON wrote: »

how did we all survive before Blair/Brown?

No, one doesn't expect Large corporations to operate in the best interests of their employees,
government's job is not to stop the productive part of the country expanding so that salaries are forced up by the demand for labour

Different era nearly 20 years ago. We are here and now looking forward.

Thrugelmir

Fella wrote: »

The answer is to create an environment where paying higher wages makes economic sense for them. Especially now in a globalised world.

Dream on. The world of business is a ruthless environment. The UK has no power or influence over global forces. Globalisation will simply create further deflation with regards to unskilled work. Technology is already deskilling more and more jobs. Taking them down to a rudimentary level.

Graham_Devon

Fella wrote: »

If you want the private sector to pay enough that the state doesn't have to subsidise wages, implement policies that help the private sector make more profit, so they can afford to pay higher wages.

Since when have the majority of companies paid their staff more when they make higher profits?

Thrugelmir

CLAPTON wrote: »

how did we all survive before Blair/Brown?

No safety nets. Different culture existed.

CLAPTON

Thrugelmir wrote: »

No safety nets. Different culture existed.

change is a certainty