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If Hpc Good, Why Isn't Reducing The Minimum Wage Good?

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If house price deflation is a GOOD THING - as it reduces state subsidy for housing, and allows the free market to work properly (on the basis HPI arose from Government incompetence/deliberate policy), then why is it not a good thing to solve high unemployment by abolishing the minimum wage.

::Stands back and awaits flames from the "my life should be subsidised and it's not far that it isn't" crowd on here::

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If house price deflation is a GOOD THING - as it reduces state subsidy for housing, and allows the free market to work properly (on the basis HPI arose from Government incompetence/deliberate policy), then why is it not a good thing to solve high unemployment by abolishing the minimum wage.

::Stands back and awaits flames from the "my life should be subsidised and it's not far that it isn't" crowd on here::

Housing market isn't a free market.

Neither is the land market.

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If housing costs, prices and rents were significantly lower then there would be no problem in reducing the minimum wage. Obviously benefits would need to fall in line with this to keep an incentive to work.

Edited by Pent Up

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If house price deflation is a GOOD THING - as it reduces state subsidy for housing, and allows the free market to work properly (on the basis HPI arose from Government incompetence/deliberate policy), then why is it not a good thing to solve high unemployment by abolishing the minimum wage.

::Stands back and awaits flames from the "my life should be subsidised and it's not far that it isn't" crowd on here::

I agree. The minimum wage should be scrapped, but only when the planning monopoly is abolished.

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Generally speaking, reducing property prices hits wealthier members of society, whereas as reducing the minimum wage hits poorer members of society.

If the minimum wage had increased at the same rate as property did over the last fifteen years it would now be about 20 pounds an hour. Quite how Britain could be expected to compete internationally then is beyond me.

Quite why the subject of the minimum wage has been raised now is baffling. Was it those earning the country's lowest wages that brought us to the brink of financial armageddon or those at the very opposite end of the wage spectrum that did, namely the bankers?

Correct me if I'm wrong but hasn't the government just spent a trillion or so subsidising the lives of the super-rich?

I have no objection to the abolition of the minimum wage provided failed banks are allowed to go the wall and bankers are jailed. Fiat currency is socialism for banks. What's good for the chav is good for the banker and vice versa.

Addressing the question purely from the HPC angle, just how would reducing the minimum wage (and by implication all other wages) help with making property more affordable? The ratio of price to income has to fall if property is to become more affordable, surely?

The reason so many posters on this website were angered by HPI was because of the dangerous economic imbalances it would produce. Lo and behold we were proven right yet the OP seems not to have learned this most fundamental lesson.

Edited by Dave Spart

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The minimum wage was far too low to live on so people got benefits to make up the shortfall and creating the poverty trap/

You could cut it and it wouldn't make any difference. The average family spends about £480 per week all in.

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I'd go further. I'd nationalise all land and use the rents to pay for the citizens income.

To all intents and purposes the land is already nationalised

The whole landowner thing is an opportunistic pantomime placed over the top (a government scheme)

All you need to do is change the pantomime to one that treats us all as equals rather than dividing us into earthowners and earth payers

Edited by Stars

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didnt realise that the NMW was in a bubble.

Edited by Bloo Loo

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If house price deflation is a GOOD THING - as it reduces state subsidy for housing, and allows the free market to work properly (on the basis HPI arose from Government incompetence/deliberate policy), then why is it not a good thing to solve high unemployment by abolishing the minimum wage.

::Stands back and awaits flames from the "my life should be subsidised and it's not far that it isn't" crowd on here::

As long as we get rid of all the other bars to making the free market work properly. This includes -

The bar association

The accountant certification boards

The medical accrediation boards

Give shareholders 100% binding vote power in corporate decisions

Transfer all voting power from fund managers to actual share owners

get rid of the land monopoly

make politicians election pledges legally binding and under the pervue of contract law

give citizens the power to remove any politician from power at any time

give citizens the power to overule decisions made by politicians

make all elections 100% charitably funded but with the previso that all donated funds are donated blind into a pot and shared out between all candidates thereby removing the effect of money on political decisions

etc etc.

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While we have a welfare state, tax credits etc., I've never understood alleged right wing free marketeers who are agin the minimum wage. Are they really saying that shyte employers should be allowed to exploit the poor while the rest of us subsidise these employers by topping up their exploitee's income with benefits?

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Although I agree that abolishing the NMW is a good thing low waged employees aren't causing the trouble.

It's the class of parasitic uber-earners that use government licences for protection that need to be dealt with, their drain on resources is wrecking the economy.

I would love it though if Cameron and Osbourne abolished the minimum wage tomorrow, the lefties would go ape.

Edited by Chef

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Reducing the minimum wage is bad for same reason that high taxes on the rich are bad - reduced incentive to work.

Quite obvious really.

The only odd thing is that the people who constantly go about how bad it is to tax the rich too much are the same people who want to reduce the minimum wage-

Which makes them either idiots or hypocrites.

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If house price deflation is a GOOD THING - as it reduces state subsidy for housing, and allows the free market to work properly (on the basis HPI arose from Government incompetence/deliberate policy), then why is it not a good thing to solve high unemployment by abolishing the minimum wage.

::Stands back and awaits flames from the "my life should be subsidised and it's not far that it isn't" crowd on here::

Sorry to go slightly off-topic here but

The basic law:

HPC = good if a non-home owner

HPI = good if a home owner

Most HPCers will turn overnight to HPIers when they have bought a house.

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If house price deflation is a GOOD THING - as it reduces state subsidy for housing

Apples and oranges. A HPC makes housing more affordable, reducing the minimum wage makes everything less affordable.

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Sorry to go slightly off-topic here but

The basic law:

HPC = good if a non-home owner

HPI = good if a home owner

That's only half the story.

High house increase the cost and risk involved in being productive - they reduce the aggregate standard of living

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Sorry to go slightly off-topic here but

The basic law:

HPC = good if a non-home owner

HPI = good if a home owner

Most HPCers will turn overnight to HPIers when they have bought a house.

thats 8ollox..rising house prices makes the cost of changeover more...

every penny you make you spent on your mortgage, or someone else has.

Houses make no wealth after they are built.

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thats 8ollox..rising house prices makes the cost of changeover more...

every penny you make you spent on your mortgage, or someone else has.

Houses make no wealth after they are built.

I'm talking about the psychological change that occurs when a FTB (previously an honourary HPCer if you like) buys a house.

The next day, their attitude will change to one of wishing for HPI (they become a HPIer).

And anyone on here who disagrees is a hypocrite.

Sorry.

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The minimum wage should be removed and the welfare state should be dismantled. It stops people taking responsibility for their lives. It's the fall back soft option which breeds apathy.

It's like how health and safety rules have removed the need for common sense

it's like how the NHS has removed the need for people to take responsibility for their health

it's like how the education system has removed the need for independant thought

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