So what do you suggest then? I’m more skilled and have more responsibility than I did 15 years ago, yet I’m still earning the same figure.
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DWin@feddit.uk 14 hours agoI want workers to earn more, but can you really regulate the economy into being better like this?
The cost of living is insane, but the relative pay per hour of a worker competed to anywhere in Europe is already pretty high. Our current minimum wage is 25% higher than Germany, 28% higher than France, 81% for Spain, and 318% compared to somewhere lile the Czech Republic. Our economy is already stalled out, It’s already prohibitively expensive to run a company in the UK, and I don’t think making employees cost more will stimulate the economy.
Also if minimum wage rises aggressively then I think all that will happen is we’ll get a wage spiral upwards and companies will hire fewer and fewer peoeple. We saw a bit of this as we were coming out of covid as a reaction to inflation at the time. The concern is if wages do inflate quicjly, then that drivea prices higher, which results in people demanding higher wages, ect.
Tackling the actual living costs, housing, utility, food, I think that’s the only way to go about this. Anything like a minimum wage increase just rolls the snowball down the road, and it will 100% be bigger when you reach it again.
ThomasCrappersGhost@feddit.uk 10 hours ago
DWin@feddit.uk 9 hours ago
I don’t have that many answers, but I’ll give it a go.
I think we need to come down extremely hard on landlords, potentially crippling their income stream. They chose an investment, and all investments carry risk, the risk in this case is that too many people can’t afford housing, and the government has to step in and heavily regulate those who profiteer off of basic shelter. This would apply to anyone with rental properties, second homes, long term investment opportunities, ect.
Along side that, a shakeup to planning permission. Fuck NIMBYism, sorry but you don’t get a say when people are paying 80% of their income on the bare essentials. From the top down, mandate construction of new housing in an aggressive manor. After Thatcher absolutely fucked us by forcing the local councils to sell off their council houses with the start of austerity, we’ve been at a ludicrous deficit. I think the figure I was reading is we need to be building about 400,000 houses a year and then in 5 years time, we’ll get “close” to fixing the lack of supply that we’re faced with now
Where does this money come from for that? I dunno, I would guess borrowing like we have done. It’s risky as hell, but it’s better than the current risk where we borrow against our rise in GDP, just hoping we outpace the loan rate without any long term plan to reduce the cost of living. Failing that, a wealth tax could maybe be possible? In the tune of 0.5% or so. That would generate an insane amount of revenue, but it would risk foreign investors looking unfavorably towards the UK. It would look risky for their assets, so foreign investment may fall in a dangerous way, maybe this isn’t the best plan? I just have no idea, it’s not my area of knowledge.
I think the above could be enough to trigger an actual wealth transfer. By dramatically reducing the cost of living, people will actually have disposable income. Income that can go into buying things. Say you work selling clothing, your customers suddenly having 50% more of their paycheques to spend is like the ideal situation, now they actually have the funds to buy your wares. With that higher income, well now you can hire more staff, you can pay your staff more also. You’re not having to work to such a fine margin as economically your customers aren’t as screwed just trying to survive.
I have no idea if this is all viable to be clear, I hope that I’ve come to some solid conclusions and ideas here, I’d love to hear pushback on all of that as well as I’m sure I’ve made some wack assumptions.
TheGrandNagus@lemmy.world 6 hours ago
Our minimum wage is indeed fairly high, and the taxes that low earners pay is very low, but we do have problems. Wage compression in this country isn’t particularly good. Most people are either minimum wage or close to it.
Even a lot of highly skilled jobs aren’t highly paid, it’s a problem for the economy, for tax revenue, and for encouraging workers to go for better jobs/strive for progression. I don’t know what the government can do about it, but the answer certainly isn’t to pin it on young people and imply they’re lazy.
But one thing the government can definitely impact is what you mention at the end of your comment: government policy can certainly help bring down the big costs like property costs (both for people and businesses), energy, water, council tax.