Comment on Why I’ll Never Vote Conservative at a General Election by David.

“The minimum wage is a double-edged sword really, it reduces jobs (a business will only employ what it can afford) but brings up wage levels whilst also aggravating inflation through price rises of businesses trying re-coup their labour costs.”

The Conservatives voted against the national minimum wage because they believed it would increase the cost of doing business in Britain (which was true) and would cost millions of jobs (which was wrong).

The Conservatives was wrong, the country lost low paid sweatshop type jobs (I recall reading a figure of around 50,000 jobs lost) and put a lot more money in the pockets of ordinary working people. With more money in their pockets working class people who used to be on £1.20 an hour or less went out with that extra money and spent it in British businesses driving the economy.

It’s basic economics, a person who earns more, spends more and we don’t exactly have a “save for a rainy day” society, so the average man and woman in the street tend to spend most of what they earn.

Add it up Sarah, if you earn £1.20 an hour (I’ve been on as low as £1 an hour) you do not have the money to buy anything beyond the basics to survive. That means people are not buying luxuries like big screen TVs, expensive cars, etc… and that means less money flowing through the economy creating jobs (money sat in the bank account of a rich businessman does not generate jobs).

David

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