Wednesday, May 13, 2009

Please sir, can we have some more?

I suppose it must be right to be pleased that the Government have not frozen the minimum wage.

Equally, however, the increase is - as John McDonnell says - derisory. 7p an hour is enough for a packet of crisps after a full day's work.

Or a Kit Kat.

That's for real workers who can't claim them on expenses of course!

The shame of this is that a substantial increase in the spending power of low paid workers would provide the effective demand in the economy to boost consumption and encourage investment. Lower paid workers have a higher "marginal propensity to consume" than the better off, so putting money in the pockets of those on the minimum wage makes economic sense.

With the Tories showing their true colours with an attack upon the minimum wage it's time to step up the campaign to save - and improve - it.

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