The fantasyland inhabited by the Living Wage protaganists is brought into sharp relief with economic reality this week as the package firm City Link announced it is closing down and the unions are predictably seeking government bailout of the beleaguered firm.The idiotic Vince Cable has been appealed to and asked to intervene but as his grasp of economics and business is practically zero there will be no enlightenment from that quarter.
The cold hard facts are these,namely that companies are weighed down by taxes and regulation and the result is not a living wage or even a minimum wage no but no wage at all.The unions will continue to huff and puff and no doubt Mr Cable will make all the sympathetic noises and stand on his hind legs and bemoan the capitalist system but it is his statist policies which have driven City link and many others to the wall.1970's style state intervention in the economy via wage fixing and government second guessing the economy was a bad bad failed policy then and it is being replicated now and the only solution is free market capitalism with no government intervention in the economy which alone will give companies like City Link a fighting chance. (But no one hold their breath of course).
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