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    Really Interesting Finance News
    Monday, 17 August 2020 02:39

    End the Minimum Wage and Fast

    We may sound like we are just another bunch of extreme capitalists trying to exploit the poor by calling for an end to the minimum wage, it is our hope that you think differently by the time you have finished reading this piece.

    We believe that a bunch of adult school children is governing the United Kingdom. School children that have overacted at a virus of minor significance. Actions that have led to a flattening of the economy with millions about to be made unemployed. The UK is in trouble, job losses are mounting, corporate insolvencies are rising, and there is no prospect of a recovery in sight. The October end to the furlough scheme will be disastrous.

    What does this mean?

    Highly skilled and experienced people are being laid off in their hundreds of thousands. Many people who were earning £15+ per hour, will now find themselves without jobs and willing to work for the minimum just to put food on the table. These people have the flexibility to work for less to secure a job.

    But what happens to the people with few qualifications who were working for the minimum wage? Because of minimum wage rules, they can’t reduce their wage demands to keep the food coming in.

    If you were an employer just about to hire someone for a minimum wage role, you would be looking at those people who were once earning £15 an hour, and you would be tempted to employ them for the minimum wage. After all, they are skilled and qualified people. There is nothing wrong in that, Employer and Employee are both happy.

    The current minimum wage demographic are the ones that are in a lot of trouble. Unskilled, unqualified people who could now be thrown on the job scrapheap. If they are fortunate, they will find a couple of zero-hour contract jobs to get them through a few months.

    Unless there is some solution that we aren’t aware of, the only help for these people will come in the form of the removal of the minimum wage. We are 100% sure that the minimum wage will go, but the question is who will remove it? Will it be off-grid employers and employees who are going to work cash in hand, or will it be the Government?

    What we do know is that if someone is unemployed for more than six months, their chances of returning to employment is reduced by 75%. Allowing these people to drop to £5-£7 per hour would allow them to remain competitive in the job market and avoiding that horrible statistic.

    Our news service is great because it pulls no punches and doesn't allow political correctness to interfere with our views.
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