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Originally Posted by aka123
That sum thing was about the incentive. You assumed that other people wouldn't have incentive to work if they would get that 100 UK pounds per week. That I was wondering.
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Yes because I've seen it with my own eyes. There are entire generations who live on benefits in the UK and never join the workforce, living in the council estates, on housing benefit and so on.
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Minimum wage is not a big problem, as the cost of living sets the actual minimum, not minimum wage. Minimum wages are already so minimum that it doesn't have any real impact.
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I disagree because the minimum wage in the UK (if calculate on month basis) is a good wage in many Asian countries such as India, China, Vietnam and so on. This makes their economies uncompetitive and causes the problems I explained before where people go looking for labour abroad. It also affects business confidence and risk taking - I know many people who could start a new business with very little capital if they could pay lower rates for labour. The key is that they only start out that way, eventually the wages would increase.
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About national debt, it is not caused because of unemployed people, it is caused because nation's expences are greater than income
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Correct but basically the welfare bill contributes to that national debt for every single country that operates a welfare state and has a national debt.
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Also, modern kind of outsourcing to "cheap countries" is just temporary phase.
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This is completely wrong - it's been going on for more than 20 years and is increasing every year markedly.
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Governments set the playground, so, slow moving or not, they make the rules.
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And they will live or die by them - time will tell. As of today however, its the big government, big regulation, big welfare state countries which are the debtor nations in the world and have the highest debt ratios. The bottom line is that a country owes almost its ENTIRE GDP to private sector and businesses. Without businesses and capitalism a country would be dead in the water.