Monday 11 March 2013

Free Labour

It seems like everyone wants to reduce the welfare bill. Entitlement spending. All the money that the lazy people get at the expense of the hardworking.

To be honest, these are by no means feelings I am immune to. I have relatives who seem to have a very similar disposable income to mine, but a lot less work. And qualifications. It can rankle a little sometimes.

The unfortunate thing is, most entitlement spending in advanced western countries actually goes to people IN WORK. That's right. Unemployment is one problem, and at the moment quite a serious problem, but even if you stopped paying unemployment benefit, that would not solve the problem of the welfare bill.

The problem is welfare is being used to subsidise EMPLOYERS not EMPLOYEES.

What I am saying is, if a mature adult is prepared to go out to work, full time, and has been doing so in steady full time employment for five years, they should be able to do the following.

1) Support themselves
2) Support a spouse/partner
3) Support two children
4) Afford a car (second hand)
5) Afford a cheap (not international) one week holiday once a year.

If someone is working hard, full time and had held down a job for five years and CAN'T have that, what would be the point? The minimum wage should be targeted at that level. That would be a really significant rise in the minimum wage.

Many people might say employers 'can't afford' to pay that level. I have news for those people. If you can't afford to pay someone a fair wage, you can't afford to employ them. I would like to have someone come into my house and do the cooking and cleaning. Problem is I can't afford to pay enough. Does that mean welfare should make up the difference?

Why should welfare subsidise employers? So they can make fat profits? Pay executives big bonuses? Pay dividends to shareholders?

There was a time when an average unskilled wage was enough. That time has passed. Wages have been forced lower. Now low wages are subsidised by the tax payer, and the growth in the return to capital has outstripped growth in the return to labour.

Worst of all the narrative is all about lazy feckless poor people taking advantage of the welfare system, when the people getting fat on it are the rich.

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