Monday, 10 November 2014
CBI demand ever more subsidy for Business
But you would be wrong. The CBI is a useless institution - cheerleaders for corrupt corporatism rather than capitalism. Ably demonstrated by their insane demand that we sign up to more Europe rather than have a referendum or leave the broken project.
Today, in this traditional manner, they are demanding that the Government offer free childcare to working mothers and take more people out of tax, whilst raising the threshold of National Insurance tax so as to remove more people from tax.
All the while of course, the Government deficit of £100 billion a year needs to be tackled
All this because average families are struggling as businesses hold down wages. But surely with inflation at only 1%, wages cannot have fallen too much.
Sadly, as we know, inflation is not 1%. House price inflation, which drives rents, has been over 5% a year. Energy price inflation, once you include Green Taxes to pay for our wayward energy policy, is also around 5% a year.
So no wonder people are struggling. However, for companies to demand more Government assistance to help with low pay is to completely miss the point. The economy is not struggling because mums are not going back to work quick enough - a Dickensian approach to the world anyway, to be expected of the Bosses Lobbyist perhaps.
The economy is struggling as a low inflation wage environment is matched to a mis-matched supply of key resources such as property and energy. If these costs could be lowered, people would have better standards of living and they would also have more disposable income.
To suggest more subsidy for jobs when one of the main drivers of the deficit is exactly the tax credits issue which is already a huge subsidy for jobs is to pile insanity onto recklessness.
Still, a good rule of thumb, if the CBI are saying something needs to be done and this is a good idea, then you know they have it all wrong.