living wage

This living wage thing .. .. .. isn't this just minimum wage packaged with a shiny new name, a chance to convince the terminally stupid that they are getting a good deal in their wage packet?

I only ask because at the moment a few select organisations, mainly in the public and charity sectors, are promoting this as a good thing. Once every organisation in the public and private sector offers the living wage as the entry level into it's payroll structure the living wage will become by default, or by legislation, the minimum wage.

Universally higher wages for the sake of it are just an illusion of prosperity. The poorest sections of the population will still be the poorest sections of the population whatever their hourly rate of pay. It is not the solution to the problem.

Higher wage bills across our economy force the price of goods up. Higher wages across our economy make British industry less competitive in the global economy and stoke the fires of inflation.

I run a small business and employ 12 people. If I have to raise my starting wage to the £8.10 per hour that Caroline Lucas, in an interview for the Daily Politics, has just suggested as an appropriate level my prices will rise so that I can continue to do the basic things such as eat, pay my bills, clothe my kids. My suppliers will also raise their prices for the same reasons which will force me to raise my prices again to be able to maintain my own standard of living.

Living wage, like the constant ramping up of minimum wage, is an illusion.