Back in the 60’s it was
Harold Wilson with his 35% pay rise for coal miners that started the decline,
not just of the mines but the economy. The
end result? A 22% increase in the cost
of domestic fuel, which was ok for the miners, they got a free coal allowance. The price of coal for industrial use rose by
over 7%, to generate the extra £370m in revenue to pay for the wage increases. The increase in wages had to be paid for somehow. At a stroke it became cheaper to import coal
than to produce it at home. Welcome to
Old Labour economics.
During Thatchers premiership
the gap between rich and poor narrowed (it grew again under New Labour) and
real poverty in the UK was virtually eliminated, hence the idiotic Labour
introduction of relative poverty. The standard of living of the poorest grew
more and faster under Thatcher than in other period in British history. Under New Labour, it fell. Welcome to New Labour economics.
And the Corbyn/ MacDonald version? A mix of the two failed economic strategies of
the past.
Plus ça change.
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