Tuesday, 9 November 2010

Where do Commies get these ideas from?!

Today I read some interesting news from the heartland of communism on earth (no, not the White House). Apparently some Europeans Union Politburo members are considering putting in place some sort of all-encompassing minimum wage in the EU which would be equivalent to 60% of the average salary. The Eurocratic Lefties do not understand basic economics; this in not news to me. What is new is the extent to which this is true. These people want to commit three terrible economic crimes here:
1) The minimum wage in itself is a crime which breaks human rights. It interferes with voluntary transactions and causes massive increases i unemployment levels anywhere it is instituted. Also, a common minimum wage policy surely disregards the rights of individual nations within the EU. I thought we were supposed to be sovereign on domestic policy, eh?
2) Sixty percent. Where did they come up with this figure, I do not know. It's sufficient to say that if this is implemented a lot of people making below that 60% will lose their jobs. That will raise the average even further (and probably be hailed as a success by the Comrades and Commissars among the Bolsheviks). Will this mean that after recalculation the minimum wage will be raised even more and even more people will lose their jobs and have to survive on either welfare or die? I don't know. What I do know is that if they keep this up we will start seeing a trend of emigration from EU countries to Russia and China. Already most of the higher earning entrepreneurs have moved into Asia or some Arab countries.
3) This terrible policy will harm poorer EU countries in a disproportionate way. It has been calculated that in my dear Poland wages will have to go up by an average of 25-30% to comply with the new law! This is clearly not achievable. Therefore I expect that countries like Poland, Romania, Bulgaria, and the Baltic Countries will see unemployment figures of around 25% (for once not because of crazy policy by local politicians!) and they will suffer massive emigration. Not to mention that this law is meant to make it more attractive for emigrants from these countries who currently live in Western Europe to come back and seek jobs at home. The exact opposite effect is bound to occur!
For those of you curious about this 'great' new plan - there is a good english article written from the Commie perspective available here.

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