Home > Uncategorized > Labour’s economic illiteracy and lack of understanding of how businesses actually work should make frightening reading for us all

Labour’s economic illiteracy and lack of understanding of how businesses actually work should make frightening reading for us all

Actions always have consequences. It’s just the way that the world works. That is of course unless you are an irresponsible politician out to acquire power at any price and don’t have one moment to think about reality as glory is your only cause.

John McDonnel’s announcement that Labour is now committed to a four day or 32hour working week sounds wonderful for workers who only hear that they will get a days paid holiday each and every week. Whilst for businesses, it’s the reality that many would go out of business as they would become instantly unsustainable, whilst many of the people such a hair-brained Policy is supposed to win over would simply lose their jobs.

The simple reality that underpins this policy masterstroke is to condemn businesses of all shapes and sizes of having to find the full cost of funding the cost of an additional employee, per existing employee, every week for at least one whole day.

Even with a ten year introductory period, the ridiculousness of the assumptions that underpin this policy cannot be reduced into what Labour clearly thinks is a very simple thing.

No sustainable business can absorb financial implications of this kind without becoming unviable, having to reduce its number of staff, or by increasing costs to such a degree that any benefit to the employees that still had a job at the end of it – through the inevitable accompanying rise in the cost of living – would simply be lost.

The stupidly that underpins such brazen attempts to secure an electoral victory by securing the support of idealists would be laughable, if the outcome of putting these people into power would not be so serious for us all.

Short-termism doesn’t cover this level of ineptitude. It really would just make everything that’s wrong with the economic model we currently have is this country much worse, rather than making it possible for normal people to have a decent life without going into debt – which is what any decent politician would now recognise as being what people really need.

It’s not the money we earn or the days off that we have that will make the difference that we all now need. It’s the political recognition and politicians taking the action required to ensure that the financially poorest in our society face lives that they can actually afford that will bring everything else into check.

To do that our politicians must look the real decisions and actions that they must take in the eye and stop pretending that making easy choices will have no consequences for the people they are supposedly trying to help.

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