The Minimum Wage Paradox

The most obvious and apparently most simple way to deal with the Cost-of-Living Crisis is just to put the National Living Wage Rate up, as the Tories have planned for the 2022/23 Tax Year that begins in April.

Most low wage earners will jump at the opportunity to earn 50p an hour more, which works out as £20 extra for a 40-Hour Week and £1000 over the course of the year.

The problem that we now face in this respect alone is that prices of everyday items and energy on their own are likely to swallow up that amount from the pockets of many before the changes have even come into effect.

Whilst a Minimum Wage requirement seems like a very logical rule to have, the rather depressing and counterintuitive flip side of the National Living Wage is that it gives big employers a get out of jail free card when it comes to setting a realistic wage level for frontline roles within their business.

Greedy owners, shareholders and managers – often themselves being paid many times more than their frontline staff – are very happy to use the Minimum Wage benchmark because the Government has set the standard. And it works very well for them because there is an assumed belief that Government control is as far as it goes.

Companies are quite literally using the reference point of the National Living Wage as an excuse not to pay more, when in many cases there is no doubt that they could.

The dilemma is that without the Minimum Wage – as was the case until 1999 – businesses will always pay the lowest paid workers the absolute minimum that they can. They would surely return to this way of employing staff in minimum wage levels were to be scrapped.

Just because employers can get away with anchoring wages around the level of the National Living Wage, it doesn’t follow that they actually should.

Many larger businesses could afford to pay staff more right now by reducing their profits. But as so many of these companies are now shareholder-led, there is an expectation that the bottom line and the dividend payouts will always be prioritised above employees instead.

When the basic wage pays for everything anyone needs without them needing benefits or taking on debt, workers will be happy and jobs that people now avoid will be enthusiastically filled

The Cost-of-Living Crisis that our Politicians and Mainstream Media are now being forced to recognise is a life experience for many that is nothing new.

In fact, it is only because of the current circumstances that the Politicians and the Media have unwittingly encouraged that the situation is now beginning to become acute. The price to survive is starting to touch so many different areas of life, that the establishment can no longer avoid the truth that they find so unpalatable. The consequences of years of self-interest and inaction can no longer be kept out of sight.

Last Friday morning, Interviewers on BBC Breakfast News talked to paid carers and homecare companies struggling to find and provide staff to deliver a service that we may not want to accept that many of us at some point may need daily or perhaps more when we reach later life.

Social Care a political hot potato that is the subject of debate in its own right. But as an industry predominantly led by private profit-making companies, it offers perhaps one of the very best examples of how wage levels for staff in frontline hands-on roles are disproportionately low when considering the purpose that they fulfil.

Indeed, many of those who carry out this work require benefits or what are effective subsidies from the public purse in order that they can both work and survive.

Like many of the roles fulfilled by the people who are now beginning to struggle with the Cost-of-Living Crisis first hand, employed healthcare workers are being paid the Government set ‘National Living Wage’ or Minimum Wage, which from April will be £9.50 an hour, or £380.00 for a 40-Hour working week.

£19,760.00 per year simply isn’t enough for anyone to survive fully independently without support, benefits or going into debt on today’s terms.

There is a very important question that needs to be asked of our politicians: ‘Would you want to do, and would you enjoy doing a difficult and physically demanding job for a whole 40-Hour Week and then go to the shops and realise that food is a luxury that you cannot afford?’

The answer would of course be an unmitigated NO.

Whilst the rather obvious answer we would receive from our current Politicians would be sure to be accompanied by comments about all the benefits that are available to low wage earners to support them, there is another very important question the people ruling this Country should answer all of us too: ‘Why does the situation exist where Taxpayers are topping up millions of wages with benefits so that big and otherwise dysfunctional businesses can profit at levels which in most cases are absolutely obscene, given what they pay their frontline staff?’

Paradoxically, the work and effort that it takes those who are able to achieve wage levels that cover the cost of everything that they need is not something that a great many people really cherish or enjoy.

In fact, the quality of life that simple jobs with fixed hours without excessive travel would offer, would be something that many would choose to take – IF that kind of occupational lifestyle could achieve self-sufficiency with the security that everyone deserves as a minimum to achieve.

Despite what anyone with an interest in maintaining the perverse status and rules that allow all of this to exist will tell you, it is not impossible to change things and create a capitalist-based system where everyone can thrive and enjoy their lives fairly – rather than everything being funneled at the few and being maintained at the cost, expense and pain of everyone else who exists.

It is just a shame that we have a political class that is fixated with its own existence rather than seeing the real ills that society faces as something that can actually be fixed.

Sadly, for us all, in their obsession to maintain their positions, our Politicians have bolted shut the democratic doors.

Right now, there is no way we can get real leaders into Parliament who have the ability, wherewithal and commitment to do everything necessary to make life affordable and fair for all.

Poverty and hunger will not be addressed in the UK until politics is the means to solve our problems rather being accepted as the end

Balancing news input has become an unwitting challenge for a great many, simply because of how polarised and partisan the mainstream media has become. Whether it be to champion the right, the left or to further the destructive and forceful narrative of wokeness, there is very little that really encapsulates all or does a good job of sitting in between.

The environment that a world of echo chambers creates wouldn’t be quite as problematic in terms of societal problem solving and the legacy that it bequeaths if it were not for the seemingly population-wide absence today of critical thinking skills. The troubling truth is that we are navigating a phase of our history where real life problems are elevated or suffer scorn within the public view, depending on where the story was broken and the following assumption that the readership will be voting one way or another depending on who’s who.

Over the weekend, I read the article written by Jack Monroe in The Observer / The Guardian ‘Were pricing the poor out of food’ (which I cannot link at the time of writing as it appears to have disappeared). Beyond the timeline and list of things that Jack has arguably achieved by drawing attention to the realities of what it costs to eat when you are either temporarily or long-term poor, it was striking just how obvious that for the past decade, a failure to gain real traction in the fight against food poverty in the UK is in no small part because it is a subject championed only by the left.

That this Conservative Government has been out of touch with the uncomfortable realities that people right across the UK face is a given. Not because the Tories are consciously cruel. But because in the minds of the people who write their policies – who are unlikely to have had a free school meal, hand-me-down clothes or even experienced the joys of playing outside in a housing estate street – they genuinely believe that poverty and unemployment are one and the same thing – and the wannabe yes-men that follow them do not have the integrity to question what they are told.

This reality is borne out in the news even now. Public figures such as Chancellor Rishi Sunak champion the number of new jobs created and the number of people back at work, whilst forgetting to mention that the non-jobs that have been created pay the absolute minimum. That the ‘work’ is in all likelihood part-time or similar. Worst of all, that in many cases securing a ‘job’ just creates a minefield for those who were beguiled into signing up as self-employed only to find that overtly reasonable pay also includes all of their expenses and that the real hourly rate is a lot less than anyone can or should be expected to afford.

It’s a brutal reality that the people leading this Country are in a shocking state of denial about the circumstances and experiences of the poor. Their lack of appreciation is bolstered by the self-righteousness they fool themselves with as their head hits the pillow each night, hiding behind measures such as the minimum or living wage; all the time believing that this is as far as the legislative powers of the legislators need to extend in order to make life affordable for all.

At this point, it might be easy to read this Blog as a left-leaning. Labour and all of the left-wing pretenders such as the Liberal Democrats talk a good story about poverty and hunger and the unfolding cost of living crisis too. But their words – and actions – when their time in power has allowed, also shower them with something a lot less shiny than glory and that leaves behind a very redolent cloud.

The solutions the left offer, based on money and levelling down, don’t actually solve or even begin to address many of the wider issues that their own impractical and ideological approach to policy making have created. And this issue today has never been more relevant as we collectively stare into an abyss of what could genuinely become a financial Armageddon where throwing money at all of these problems will not be something that even a new Labour-led government elected in the coming months or years could now afford to do.

The problems which leave people unable to afford the food to feed their children – even if they starve themselves are massively complex in nature.

The cold, hard reality is that giving people more benefits or throwing money at charities such as the Trussell Trust – which really shouldn’t have to exist in 21st Century UK, is no better than coming up with creative schemes and misleading headlines that suggest everything is alright if you are ‘officially’ classified as having a job.

Wilful blindness on the part of our entire political class has contributed to a situation where politics is no longer the means to solve societal problems. Politics is now the end in itself.

The evidence that any good politician needs as the basis to start building the list of questions, the arguments and the recognition of how many areas of public policy are actually involved just to begin the process of dealing with these problems is there for all to see.

Hiding ominously in plain sight is the truth that no one with a public voice speaks and no one with the public gaze upon them will dare open their eyes to see.

We need politicians to be dealing with the questions that arise when people earning the basic wage that they have championed can only afford to live if the public purse continues to subsidise them.

How did this happen?

Why is it continuing?

Who is responsible?

How much do people need to earn to be able to support themselves without help?

When production is now arguably more efficient than it has ever been, why is any food on a supermarket shelf a luxury that one person earning a full-time wage cannot afford?

The truth is that the politicians we have would not like any of the answers to just these few questions and many, many more. That’s why they don’t listen. Its why they don’t look. Its whey they look for quick fixes and highly disingenuous soundbites that are there only to mislead and to hoodwink the very people that they should be helping into thinking that it is a problem of their own making.

Yet the reality is that the people who should and could be dealing with these problems are not.

These are problems that we have elected people to deal with. People who have taken our votes and our trust that they fulfil their responsibilities to us and always put them before their own.

They are there to find and deliver the solutions to the difficulties in life that we cannot do so ourselves – such as making sure that we all have the basics that we need available.

Instead, we have the wrong politicians. Politicians who are in politics for politics sake. And because they are completely unsuited to what they do, we have a situation where the fat and bloated are getting richer and richer, whilst everyone else has less and less whilst even having their status devalued as those in power play games with what it means to be poor.