Wednesday, 24 November 2010

National Recovery Plan

The Plan can be downloaded here. TASC's initial response is available here.


Rory O'Farrell said...

The minimum wage is cut 11.5%. The report says we have the second highest minimum wage.

This is simply untrue. The Eurostat data shows the monthly minimum wage, not the hourly rate. So in Ireland its based on 39 hours, in France 35. Both France and Luxembourg have higher hourly wages. This ignores the fact that labour costs are considerably lower here. In France they have far higher employer contributions.

Its highly unlikely that the minimum wage harms employment. The Quarterly National Household Survey shows remarkable stability in employment in the accommodation and food services sector. However, Irish workers are displacing foreign workers in this sector. Page 28

Those protected by the minimum wage have amongst the worst bargaining positions in the labour market. As the jobs crisis is due to the lack of demand, this measure will not increase employment. It simply shifts income up the distribution. This means more money will be spent outside the Irish economy.

Also, employers paying the minimum wage tend to serve the domestic economy. The wages of their customers are being cut by 11.5%.

This, combined with tax and VAT increases, make a huge impact for those on the minimum wage.

The minimum wage isn't even a cost to the public exchequer. Its inclusion is grotesque, unbelievable, bizarre and unprecedented.

Anonymous said...

Does anyone care to calculate the cost to the average teacher of changes to pension tax relief?

I warned before about an unintended side-effect of standardizing, that the advocates around this parish obviously hadn't factored into their reasoning.