There always must be trouble afoot when the CBI advises their employer membership to start paying more to their workers. Of course it’s all clothed in the warm language of morality, but of course if that had an ounce of appeal to the employing class, why didn’t they think of doing this 5 years ago when wages began their dizzy (and intended) fall which has now reached 9% since 2008?

No, there must be some other reason why the employing elite are now feeling a sudden pricking of conscience, and there certainly is. With business investment still badly depressed at 24% below its pre-crash level, exports still falling, and all the monetarist devices to boost the economy in full play but not working except the wrong ones (artificially stimulating the housing market and encouraging consumer borrowing already at 160% of GDP), there is nothing for it – take a deep breath – but to raise wages and thus also raise productivity which is still falling. So are employers going to do this in 2014? You must be joking. Continue reading →