I'm not sure that applies to wages/labour since the cost of labour for businesses isn't actually coming down. It continues to rise and rise and rise. No wonder businesses try to minimise their wage costs as much as they can.
Employees are by far the biggest expense of any business and it is only getting bigger, and will continue to do so if some on here get their way with a £10 min wage.
Perhaps the government should cut tax credits to the employees of these companies and give the money straight to the said companies.
Low wage employers are already being subsidised by the State with these tax credits which makes a mockery of Capitalism as in the real world these companies would have to pay living wages in order to be able to declare themselves as fully functioning independent Capitalist enterprises.
Then maybe a more even spread of wealth would occur rather than a rich elite constantly reaping the benefits of low wage services and goods.
Perhaps the government should cut tax credits to the employees of these companies and give the money straight to the said companies.
Doesn't work -
# it doesn't reduce the government bill one penny, just shuffles the money about.
# tax credits are based on personal circumstances, so it would be better for an employer to take on people who have a higher tax credit allowance, as they can maintain MW costs while their employees are being paid more than that at government expense.
Leaving the others to claim higher benefits, because they're now unemployed.
# higher admin costs. You would have to build in more bureaucracy to ensure the money is being passed on to employees, which leads to
#some employers will cheat and pocket some of the money, which they can't do if it's paid directly
Comments
Perhaps the government should cut tax credits to the employees of these companies and give the money straight to the said companies.
Low wage employers are already being subsidised by the State with these tax credits which makes a mockery of Capitalism as in the real world these companies would have to pay living wages in order to be able to declare themselves as fully functioning independent Capitalist enterprises.
Then maybe a more even spread of wealth would occur rather than a rich elite constantly reaping the benefits of low wage services and goods.
# it doesn't reduce the government bill one penny, just shuffles the money about.
# tax credits are based on personal circumstances, so it would be better for an employer to take on people who have a higher tax credit allowance, as they can maintain MW costs while their employees are being paid more than that at government expense.
Leaving the others to claim higher benefits, because they're now unemployed.
# higher admin costs. You would have to build in more bureaucracy to ensure the money is being passed on to employees, which leads to
#some employers will cheat and pocket some of the money, which they can't do if it's paid directly