Top Wonks Slam Osborne’s Minimum Wage Rise

Osborne ruining Ed’s big day by calling for a rise in the minimum wage is politically cunning, though it remains a fundamentally unsound economic idea. Here is a round up of how some of the more sensible think tanks responded to the idea of an increase to £7-an-hour:

Adam Smith Institute – “A minimum wage increase will hurt the poor, particularly young people and vulnerable groups like migrant workers. Most of the empirical economic evidence has found that increases in the minimum wage cause increases in unemployment. Even if the immediate impact is not large, this increase will lead to a long-run decline in job creation and standards for Britain’s poorest workers. It will hurt the very people it is supposed to help.”

Institute of Economic Affairs“This move would not only jeopardise the jobs of some of the most vulnerable workers in the country, it will make it even harder for the young and out of work to get a foot on the employment ladder. If an employer cannot afford to hire someone because the minimum wage is too high, then someone who otherwise could have found work remains unemployed. The minimum wage is a blunt instrument. Increasing it will damage both business growth and society’s most vulnerable.”

Centre for Policy Studies – “Those who suffer most from a rise are the unskilled and young, who have low productivity and get priced out of the market – denying them the chance to accumulate “on the job” human capital. Higher minimum wages make it less profitable for firms to take on untested employees. This may be one reason why youth unemployment and unpaid internships became more common, even in a healthy pre-crisis jobs market.”

Still, you’d need a heart of stone not to enjoy Labour’s squirming this morning…



Tip offs: 0709 284 0531
team@Order-order.com

GuidoFawkes Quote of the Day

P.J. O’Rourke tells the Daily Politics:

“You really do love your NHS. But what I don’t understand is if it’s so good why are you always trying to fix it?”

Top Posts This Week

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

TINY SUPER STRONG ROBOTS PULL 2000 TIMES THEIR OWN WEIGHT TINY SUPER STRONG ROBOTS PULL 2000 TIMES THEIR OWN WEIGHT
BBC JUMPS ON GUARDIAN’S FOSSIL FUEL DIVESTMENT BANDWAGON BBC JUMPS ON GUARDIAN’S FOSSIL FUEL DIVESTMENT BANDWAGON
Biased BBC Election Website at it Again Biased BBC Election Website at it Again
#DollGate Cartoon #DollGate Cartoon
Pump It: Dave Edition Pump It: Dave Edition
VIVIENNE WESTWOOD IN VILE “LIMBLESS BABY” STUNT VIVIENNE WESTWOOD IN VILE “LIMBLESS BABY” STUNT

WATCH: Obama at the 2015 White House Correspondents’ Dinner WATCH: Obama at the 2015 White House Correspondents’ Dinner
Spoiler Alert: Game of Moans Spoiler Alert: Game of Moans
WATCH: Boris V Miliband WATCH: Boris V Miliband
Flashback: Labour’s Shadow Housing Minister Opposed Rent Controls Flashback: Labour’s Shadow Housing Minister Opposed Rent Controls
What’s Claret and Blue? What’s Claret and Blue?
Media Idiocy Media Idiocy
Tom Baldwin Wrote Toxic Migrant Briefing Tom Baldwin Wrote Toxic Migrant Briefing
Ed Weaponises Dead Migrants Ed Weaponises Dead Migrants
Taking the P**s: ANDROID IN APPLE UROLAGNIA SHOCKER Taking the P**s: ANDROID IN APPLE UROLAGNIA SHOCKER
TELEGRAPH TELLING FRACKING PORKIES TELEGRAPH TELLING FRACKING PORKIES
ED MILIBAND IS READY ED MILIBAND IS READY
MILIBAND’S IDEOLOGICAL GURU IN PAY OF SAIF GADDAFI MILIBAND’S IDEOLOGICAL GURU IN PAY OF SAIF GADDAFI
PEAK #SEXYMILIBAND REACHED PEAK #SEXYMILIBAND REACHED