What's Minimum Wage in England?

[Besimudo]

Clearly, the minimum wage needed to be reduced for productivity measures; micro-economic reform encourages firms to increase their labour:capital ratio. In the macro-economy, this has the effect of decreasing unemployment and stimulating aggregate demand. As the economy reaches the NAIUR (Non-Accelerating Inflation Rate of Unemployment) productivity boons are reflected in the CPI (Consumer Price Index), thus, curbing inflation. Most exorbitant British goods are manufactured locally. Imports are, ironically, cheaper, in relative terms. That is to say, an Italian car is more cost effective than a loaf of bread. Sadly, Britain is a great example of domestic price tyranny ... and the colloquialism: How much is a carton of Milk? - reflecting the premium that Brits pay for Giffen goods is not exaggerated. Britain also faces some pretty tough income inequality ... one of the highest in Europe.

So, why didn't Thatcherisms work? Because monetarist shock therapy affected the total economy, not just firms. Adjusting interest rates to control prices, stimulate the money market and improve loanable funds (liquidity) had many unforseen negative consequences. Inflated British pounds altered foreign buyers' preferences and hence Britain's glorious export industry collapsed, virtually overnight. Demand mechanisms control the FOREX market, so buyers simply shopped elsewhere in Europe.

Thatcher's legacy has since damaged British aspirations to curb inflation; it is generally held that any attempts toward monetary reform will adversely conjure up bad memories of the 1980's. Joining the EU is a socialist policy that achieves much the same, however. Privatising most of Britains public services was the only good move on her behalf.

Best remedy would now be tax reform.

Cheers

[Madame Adequate]

Actually the quickest and easiest way to lower prices, without affecting the minimum wage (Already rather low), is to simply reduce the ridiculous tax burden on the average British consumer. People are taxed when they are paid, taxed when they purchase, and taxed when they save. If you've got more than a certain amount, you're taxed when you die, too. Petrol duties are such that we have... insane prices at the pumps. Airline taxes, now even higher, are so high that it's not uncommon for half the fare to be tax (Yet we're apparently not taxed enough!) It was for me the last time I went to the US.

[Besimudo]

Indeed.

We seem to agree on the tax reform subject.

reduce the ridiculous tax burden

remedy would now be tax reform.

The problem is that socialist policy revolves around taxation. Britain certainly has a socialist government at present. If you feel hard done, then look at the Scandinavian model. Nordics have an elaborate pre-Keynesian fiscal package that entails well over 60% income tax.

Given that social equality is non-exclusive, the high tax burden might actually be a good thing. Without forcing savings i.e. cutting back on foodstuffs - why not curb consumption of luxury goods: mobile phones, cars, appliances and internet. Ask yourself if you really need the new flat screen and matching lounge. Chances are you don't.

Personally, trading in the vehicles and not buying petrol is a great way to save money.

[Madame Adequate]

It's not for anyone else to decide what I need, and if I don't need something, how much weight I put on what I want.

And yeah, they have it rough in the rest of Europe. I think it's more than severe in Britain, but jeez... =/

[Old Manus]

You forgot Poland.

[rubah]

You should see house prices compared to those in America. It's made me seriously think about moving to the US when I want to buy a place of my own. I also find it amusing, well, I say amusing but I mean infuriating, that we have to wait for months more for games (come on, just give us the US version. Sod the French. They should just give up on their stupid language) and consoles and they end up costing much more, if they even get released here at all.

It's not all bad, though! We have free healthcare, football, fish 'n' chips, Terry Wogan and more Cadbury's than you can shake a Twirl at. Oh, and American beer = LOL.

On a somewhat related note, I haven't changed my dollars from a recent trip to the US back to pounds yet, because the dollar's value is so low right now. I think a pound is worth something like 1.93 dollars.

does that mean I should convert my pounds left from last March (when it was 1.85ish)?

[Psychotic]

does that mean I should convert my pounds left from last March (when it was 1.85ish)?

Yes.

I think it rose to 1.95 today. Wonderful. I also saw this article in the fantastic Daily Mail about how a couple sold a small house in Britain for £200,000, then went and bought an ex-governor's house (and very big it was too) for £250,000. It's crazy talk!