Comment of the Day


From Cows4me:

I’ll admit I’m far from been the sharpest knife in the draw and understanding lefty logic can be a challenge but Iain Lees-Galloway has me stuffed. Iain was on the box heralding the new minimum wage , up by 75 cents to $16.50 per hour, apparently the lowest paid are now rolling in it. Dear old Iain went on to state, “employers and business should welcome this rise as it will put more money into people’s pockets which they in turn will spend at businesses”. Either I’m thick as crap or Iain is somewhat financially challenged. So Iain I was just wondering where does the government get this money from to demand a wage rise, wait, I know that one, employers and business owners. So if I’ve got this right the very people that you claim will benefit will be in fact funding these rises and thus your claim business will do better is simply a crock of crap. It’s a bit like a dairy farmer drinking his own milk and expecting the monthly cheque to be bigger than last months. It’s a bloody nonsense and so are you and so are the socialist clowns you hang out with.

This is the problem with life long troughers or unionists, of which Iain Lees-Galloway is both. He’s clearly spent too much time fostering relations with the stenographers of parliament to have actually learned basic economics. Having two-fathers probably didn’t help his learning either.

The basic situation is this, the government, by arbitrarily increasing the cost of labour without a corresponding lift in productivity, has probably condemned more than a few people to unemployment. On top of that businesses who now pay wages at the minimum wage will have to recover that…from customers….meaning that prices will go up and inflation will be at risk. People who are paid just above the minimum wage will now want commensurate pay increases, further increasing the cost of production, further increasing recovery from customers, further increasing inflation.

More people will lose jobs, automation becomes viable and inflation robs wage earners of money. All round it is a lose-lose situation. But these fools think that employers should absorb the costs…they won’t. On top of that with tax increases the employers and businesses will now actively look for ways of not paying taxes.

They are fools. The argument that increasing wages helps everyone fails, because if an increase of 75c is good then surely an increase of $5 would have been better. If Labour truly believed it was helping the poor then why not do that?

They won’t because they know that will simply deliver the aforementioned economic lesson far harder and faster than what is really going to be delivered.