The Minimum Wage

Even Patricia Witless seems to get it:

The chancellor insisted that doctors, dentists, nurses, midwives and
other health workers should be held to 1.5% in the annual settlement
for 2007/8 – well below the inflation rate of 3.6% in the most recent
retail price index.

Ms
Hewitt is understood to have fought for more, but eventually accepted
Mr Brown’s ruling. Yesterday she recommended the 1.5% in a submission
to the independent review bodies which set the pay for professions that
are unable to strike for higher earnings without compromising their
patients’ safety.

In an unusually stern warning, she said a more
generous settlement could force NHS trusts to shed staff, reduce
overtime, or cut services. An extra 0.5% would cost £107m – equivalent
to the salaries of 3,300 qualified nurses, 1,200 doctors or 51,000
operations, she added.

Raise wages and fewer hours of labour can be paid for from the same pot of money. Clear and logical. So why do so many people deny this simple truth, one so obvious that even Patty gets it, when it comes to the minimum wage?

2 responses

  1. dearieme Avatar
    dearieme

    I was about to suggest that the GPs have had such a whopping rise recently that there would be few, ahem, ill-effects if their pay were frozen for a year ot two. Then I realised that that might provoke a few early retirements because their pensions would get rises.

  2. Not an economist, but if the pay is shite, then less people want to do the work of nursing and the like (and it is *hard* thankless toil).
    Example – the government is sneaking a way of lowering the NHS wages by even more by reducing the number of hours that are considered ‘anti-social’.
    People are leaving…

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