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Blanchflower: Immigration Means We Can Cut I R


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http://uk.biz.yahoo.com/30102007/325/boe-s...er-thought.html

Tuesday October 30, 06:18 PM

BoE's "Danny" Blanchflower says labour market looser than thought

LANCASTER (
Reuters
) - There is more slack in the UK labour market than generally thought, Bank of England policymaker David Blanchflower said on Tuesday, explaining why he has tended to vote for lower interest rates.
In a speech in Lancaster, Blanchflower, the only Monetary Policy Committee member to vote for an interest rate cut last month, also said immigrants had increased potential labour supply and thereby reduced inflationary pressures in the economy.
While his speech mainly focused on the impact of immigration, there was little to suggest Blanchflower was about to change his mind on the need for a rate cut when the Monetary Policy Committee meets next week. Most analysts expect borrowing costs to remain on hold at 5.75 percent.
Blanchflower said unemployment had risen since 2005 but slowed only a little this year; the number of jobs created had fallen in the last year; self-employment levels were unsustainably high and that wage growth was muted.
"This has ... given rise to my reputation for being a 'dove', because I believe that there is considerably more slack in the labour market at present than is popularly held to be the case," Blanchflower said, according to the text of his speech.
Official data show average earnings growth has remained moderate even as the number of people claiming benefits has fallen and employment levels have risen.
"The fact that wages have been flat remains a puzzle principally to those who believe demand is booming and the labour market is tight," Blanchflower said.
He also said that while the effect of immigration on inflation and growth is not clear-cut, on balance it had raised the economy's supply capacity and reduced price pressures.

Immigration is Gordon's last hand to be dealt to keep his HPI-MEW-BTL miracle alive. No wonder he appointed Danny! Pity he got rumbled fixing the data and then asking Hain to take the blame for it. Canny Scot is Gordon. Aye, he's a canny one.

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OK so he's basically admitted mass immigration was pre-planned,and not at all an "underestimate"

the reduction in wage pressures comes at a price,a lot of indigenous brits are now over a barrel of taking a real-terms pay cut,or being laid off.

Together with creaking infrastructure,declining standards in healthcare and public services,we now have the true nature of this beast revealed.

What incentive is there for brits to contribute to the system??If they get more on benefits(as do the immigrants) and the honest joe trying to scrape a living gets shafted??

...this is utterly toxic.

Is it any wonder why taxes are going up if no fecker can be bothered to work and produce goods/services other people in the globe want??

UK seems satisfied with screwing each other into the ground with ambulance-chasing lawyers.

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OK so he's basically admitted mass immigration was pre-planned,and not at all an "underestimate"

the reduction in wage pressures comes at a price,a lot of indigenous brits are now over a barrel of taking a real-terms pay cut,or being laid off.

Together with creaking infrastructure,declining standards in healthcare and public services,we now have the true nature of this beast revealed.

What incentive is there for brits to contribute to the system??If they get more on benefits(as do the immigrants) and the honest joe trying to scrape a living gets shafted??

...this is utterly toxic.

Is it any wonder why taxes are going up if no fecker can be bothered to work and produce goods/services other people in the globe want??

UK seems satisfied with screwing each other into the ground with ambulance-chasing lawyers.

Well, you see, they want to introduce ID cards as it's the only way they can count 'em in and count 'em out. They'll soften the public up with things like this. Someone call them a taxi - I think GB just came in his pants.

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"self employment levels are unstistainably high" ... Yes... and thats because of red tape and nannying, but it should equate to un-employment figures jumping very fast very quickly. Now thats an ugly situation even if you did take the hit on IR35.

4 Weeks notice if your lucky and sod all of that lovely tax free redundancy....oh and wait till they try and claim benefits! I do hope those contracting out there on good rates have squirelled away for a rainy day as clouds are looming.

Edited by Yoss
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"self employment levels are unstistainably high" ... Yes... and thats because of red tape and nannying, but it should equate to un-employment figures jumping very fast very quickly. Now thats an ugly situation even if you did take the hit on IR35.

4 Weeks notice if your lucky and sod all of that lovely tax free redundancy....oh and wait till they try and claim benefits! I do hope those contracting out there on good rates have squirelled away for a rainy day as clouds are looming.

I am contracting myself. Not done it for long though. Saving as much as I can, as quick as I can :rolleyes:

Anyway as long as you pay yourself a reasonable salary your NI contributions will more than cover the minimum required for benefits - If it gets that bad !!

And as for the 4 weeks notice most permanent jobs only get than anyway !!

Anyone have any idea of how contracting goes in the bad times ? I imagine we are the first to go and very easily too. :o

At the same time I imagine we are the first to be hired. Because if a job has to be done the last thing a company wants to do is hire a permanent member of staff as they may have to lay them off in 6 months.

Anyone have any experience of past downturns ? Advice would be greatly appreciated !!

I assume the basic rules apply. If you have good contacts, in demand skills, and work hard things should be ok.............. :ph34r:

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Don't worry, RB, the next movement in interest rates will be UP

i think if conditions get better in eastern europe alot of the poles etc will leave especially given poor wage rates in uk. It's not like after the second world war where you could really better your standard of living by coming to England. Also a lot of food manufacturing jobs are going and even Tesco must have a limit to how many stores it has. How many immigrants can pay BTL rents of £1000 per month on minimum wage jobs?

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"self employment levels are unstistainably high" ... Yes... and thats because of red tape and nannying, but it should equate to un-employment figures jumping very fast very quickly. Now thats an ugly situation even if you did take the hit on IR35.

4 Weeks notice if your lucky and sod all of that lovely tax free redundancy....oh and wait till they try and claim benefits! I do hope those contracting out there on good rates have squirelled away for a rainy day as clouds are looming.

it depends on which kind of industry you contract in.

Anything consumer-driven and you are dead-man walking,unless you are VERY good at your job and/or very cheap.

If you can apply value-added stuff to a business looking to cut costs then you will still have work.

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THE GUY'S A TURD. Doesn't he have some connection to the hopelessly corrupt Trade Union movement? How can self-employment levels be unsustainably high? What does that mean? Has he said that temporary employment levels are hopelessly high?

:blink:

Edited by gruffydd
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How can self-employment levels be unsustainably high? What does that mean? Has he said that temporary employment levels are hopelessly high?

:blink:

He says that because he's a stalinish c**t. He would be happy to see the demise of all small businesses, just like the communists were in the former soviet union.

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Yes, soviet-style socialists / free market capitalists are flip sides of the same coin.

Blanchflower obviously thinks flexible temping is more acceptable than self-employment - why? is it because the self-employed tend to earn more than the often pitiful sums earned by temps?

Edited by gruffydd
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I don't call it the Bankrupt of England for nothing.

Continuing in this vein - building up debt and destroying the ability of the population to gain wages to counter that debt will lead to mass bankrupty, on a massive scale. In fact on a scale that not even posters on this site have warned about.

Repo levels are predicted to approach levels of the early 90's next year. Choking on debt, inflation and forced lower wages will wipe out a large porportion of the population.

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That's because the government is paid to build up your hopes and then slap you down and keep you where they think you belong. The people who get on in soviet britain are the ones who curry favour with the kremlin - escaping the most punitive of tax demands. For the ordinary working man or woman, it's more of the same. Would a violent revolution solve the problem I wonder, or just leave a worse, more opressive mess that already exists?

Edited by BarrelShifter
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