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Minimum Wage Folly A Return To Speenhamland?
The minimum wage is meant to alleviate poverty and resolve problems with unemployment but as Ian R. Thorpe shows, as with all the cure all, politically correct social engineering wheezes dreamed up by the "progressive left" every time a minimum wage scheme is implemented it achieves the opposite of what is intended...

Minimum Wage - Return To Speenhamland?
by Esther S.
2009-12-30
CREATIVE COMMONS: Attribute, non commercial, no derivs.
KEYWORDS: children, child abuse, protection, injustice, political correctness, politically correct, authority, authoritarian, courts, law

3 April 2010
Minimum Wage Heralded A Return To Speenhamland.
by Ian R Thorpe

Ian replied to an article on Tim Worstall's blog in which Tim took to task Polly Toynbee the wide eyed innocent who fancies herself as a sharp political commentator despite living in a solipsistc, Labour supporting cloud cuckoo land. Polly had said:

Tucked away in last month’s Low Pay Commission report is research by the Institute for Fiscal Studies, estimating that for every 10% the minimum wage rises, the state saves between £560m and £680m in credits and benefits. With the minimum at a puny £5.91, the taxpayer is subsidising employers such as those signatories to pay people non-survivable wages.

Tim, like the conscientious blogger he is patiently explained to the still wet behind the ears despite being in her sixties senior bleeding heart and hand wringer for The Guardian that wages can only be set by market forces. Impose a minium wage on employers and they will cut jobs; make up wages from public funds through tax credits etc. and the more unscrupulous employers will use government subsidy as a way of cutting wages.

Read Tim's full article here: Actually It's a moral issue Polly

The Daily Stirrers busiest writer added a bit of history to Tim's well reasoned comments to show there was nothing new in "New" Labour's thinking and the imposition of a minimum wage always has the same result.

Just the other day I dug out an article on the Speenhamland Poor Relief system written some years ago. Time to give it a makeover and blog it I thought. "So what is Speenhamland all about?" you might well ask. Well here's a link to an academic article on minimum wage and Speenhamland rather than my tongue in cheek take on the story

Back in eighteen nought plonk in the parish of Speenhampland, Berkshire the good burghers (or Berks maybe) came up with a scam to save themselves some money, they all being employers. If wages fell below poverty level the workers wages would be made up from parish funds as it was embarrassing to have lots of people starving to death. Everyone thought it was a good idea and voted for the measure which was duly enacted.

Straightaway the employers cut wages to below poverety level and let the rayepayers (craftsmen tradesmen, shopkeepers etc.) pay the shortfall from taxes.

The system was so successful it spread all over the country. While wealthy and unscrupulous employers did well the "doing OK but far from rich" were impoverished. Inevitable many of them ended up having to go on poor relief and jut as Labour's minimum wage is fuelling the PSBR defecit now, back then the national debt was swollen by businessmen who sidestepped their moral obligation to pay a fair wage.

Minimum wages have never worked.

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