Turn on thread page Beta
    • Thread Starter
    Offline

    19
    ReputationRep:
    https://www.theguardian.com/business...ks-worker-pool

    Wages rise with demand, out of single market = less supply.
    Online

    13
    ReputationRep:
    Until (or rather if) they do it's all just words.


    I'm quite happy to concede I was wrong. But not until I'm actually proved wrong.
    Online

    20
    ReputationRep:
    And the price of coffee will rise and inflation will increase and erode wages rises and there will be fewer jobs and higher unemployment etc.

    You can't fool economics with Brexit.
    Offline

    10
    ReputationRep:
    (Original post by Maker)
    And the price of coffee will rise and inflation will increase and erode wages rises and there will be fewer jobs and higher unemployment etc.

    You can't fool economics with Brexit.
    1) Inflation has been at historic lows for several years, which is a disincentive to people spending their money. Mervyn King tellingly remarked that if Brexit leads to inflation, it would achieve what the Bank of England had been trying and failing to achieve for the past few years.

    2) Unemployment is also at historic lows, and between HS2, Hinkley Point and Heathrow expansion, if anything we could potentially be suffering from too few workers once we leave the EU. Further, the falling pound has been a massive boon to businesses which export, which is typically the mid-large businesses which provide huge numbers of jobs. Unemployment is the least of our worries at the moment.
    Online

    20
    ReputationRep:
    (Original post by Luke Kostanjsek)
    1) Inflation has been at historic lows for several years, which is a disincentive to people spending their money. Mervyn King tellingly remarked that if Brexit leads to inflation, it would achieve what the Bank of England had been trying and failing to achieve for the past few years.

    2) Unemployment is also at historic lows, and between HS2, Hinkley Point and Heathrow expansion, if anything we could potentially be suffering from too few workers once we leave the EU. Further, the falling pound has been a massive boon to businesses which export, which is typically the mid-large businesses which provide huge numbers of jobs. Unemployment is the least of our worries at the moment.
    A little inflation does no harm but its at 1% even before the increases in import prices has had an effect. High inflation forces up wages and reduces competitiveness.

    Official unemployment is low but that is not really the whole picture. There are a lot of under employment such as people forced into part time work, workers on zero hours contracts and people on disability benefits when they could work. You also have hundreds of thousands of students who would have been in jobs or looking for them a few years ago. So there are a lot of people who are not earning as much money as they want and the country isn't getting the same amount of taxes as before.

    The low pound could certainly help exports assuming the country has the capacity to ramp up production in both visible and invisible exports and can do so without incurring disproportionately higher costs such as increasing overtime pay and selling costs.
    Offline

    10
    ReputationRep:
    (Original post by Maker)
    A little inflation does no harm but its at 1% even before the increases in import prices has had an effect. High inflation forces up wages and reduces competitiveness.

    Official unemployment is low but that is not really the whole picture. There are a lot of under employment such as people forced into part time work, workers on zero hours contracts and people on disability benefits when they could work. You also have hundreds of thousands of students who would have been in jobs or looking for them a few years ago. So there are a lot of people who are not earning as much money as they want and the country isn't getting the same amount of taxes as before.

    The low pound could certainly help exports assuming the country has the capacity to ramp up production in both visible and invisible exports and can do so without incurring disproportionately higher costs such as increasing overtime pay.
    1% inflation is incredibly low by historic standards. Given as 2-2.5% is a typically targeted inflation rate for an economy, the suggestion that we're anywhere close to being harmed by rising inflation is ludicrous. Indeed, what we've actually seen harming the economy is people saving rather than spending, which is at least contributed to by the persistently low inflation.

    I actually agree with you about underemployment, but that is hardly attributable to Brexit. Underemployment has been a growing problem for many years and has a multitude of complex causes. I actually think that one of the biggest issues has been the constant increase in university places. The political desire to send as many people to university as possible, entirely out of their own self-interest, has lead to an oversaturation of the graduate job market and hence devalued most degrees. And at the same time, very little effort has been made to encourage the degrees that our economy actually needs.

    The low pound has quite visibly served as a boon to our manufacturing base, and to our international businesses generally. The only real losers have been in the property market, and frankly our property market has needed to be devalued for some time now.

    There are plenty of economic dangers ahead as a result of Brexit, but rising inflation, falling house prices and devaluation of the pound are not any of them.
    Offline

    20
    ReputationRep:
    (Original post by ckfeister)
    https://www.theguardian.com/business...ks-worker-pool

    Wages rise with demand, out of single market = less supply.
    Cost-push inflation. Yay.

    You think coffee prices will remain the same?

    TOLD you @brexiters.
    Offline

    2
    ReputationRep:
    (Original post by yudothis)
    Cost-push inflation. Yay.

    You think coffee prices will remain the same?

    TOLD you @brexiters.
    If no one buys it then the price won't stay high....
    Offline

    20
    ReputationRep:
    (Original post by 2016_GCSE)
    If no one buys it then the price won't stay high....
    That would be a shift in demand. Unrelated to either point, mine or the OPs.
    Offline

    2
    ReputationRep:
    (Original post by yudothis)
    That would be a shift in demand. Unrelated to either point, mine or the OPs.
    Well you say:

    You think coffee prices will remain the same?

    Well, they could be in Brexit Britain if big business lowered there above charge prices.

    You can go in to a local coffee shop and pay less than these branded shops
    Offline

    20
    ReputationRep:
    (Original post by 2016_GCSE)
    Well you say:

    You think coffee prices will remain the same?

    Well, they could be in Brexit Britain if big business lowered there above charge prices.

    You can go in to a local coffee shop and pay less than these branded shops
    Why would they lower their price if their costs go up?
    Offline

    2
    ReputationRep:
    (Original post by yudothis)
    Why would they lower their price if their costs go up?
    Because they have a large margin of profit. They know that. They can still be here just with a lower margin of profit.
    Offline

    20
    ReputationRep:
    (Original post by 2016_GCSE)
    Because they have a large margin of profit. They know that. They can still be here just with a lower margin of profit.
    Why aren't they doing that now?
    Offline

    2
    ReputationRep:
    (Original post by yudothis)
    Why aren't they doing that now?
    Because they still get good numbers of customers and can still get staff on the cheap.
    Offline

    20
    ReputationRep:
    (Original post by 2016_GCSE)
    Because they still get good numbers of customers and can still get staff on the cheap.
    Irrelevant to the margin.

    Try again.
    Offline

    2
    ReputationRep:
    (Original post by yudothis)
    Irrelevant to the margin.

    Try again.
    I can't be bothered with you Remainers no more because the vote has been made and it's Brexit.

    Stay stubborn with your choice.

    My statement has great relevance with Brexit and it is possible for Costa and others to reduce prices and increase staff wages even in Brexit. They MARK UP prices sky high and these company's just use the brand as a selling point to make tremendous profits.

    They can still profit with lower prices and higher wages because there is a high gap of profit.
    Offline

    20
    ReputationRep:
    (Original post by 2016_GCSE)
    I can't be bothered with you Remainers no more because the vote has been made and it's Brexit.

    Stay stubborn with your choice.

    My statement has great relevance with Brexit and it is possible for Costa and others to reduce prices and increase staff wages even in Brexit. They MARK UP prices sky high and these company's just use the brand as a selling point to make tremendous profits.

    They can still profit with lower prices and higher wages because there is a high gap of profit.
    They could have done all of that prior to the vote, after post vote, all regardless of outcome of the vote.
    Offline

    2
    ReputationRep:
    (Original post by yudothis)
    They could have done all of that prior to the vote, after post vote, all regardless of outcome of the vote.
    But they don't do it because they can get away with it. If we go hard Brexit then chances are things might have to change for such overpriced company's with cheap labour.
    Offline

    20
    ReputationRep:
    (Original post by 2016_GCSE)
    But they don't do it because they can get away with it. If we go hard Brexit then chances are things might have to change for such overpriced company's with cheap labour.
    Yes, things have to change, and a likely change will be increasing prices.
    Offline

    2
    ReputationRep:
    (Original post by yudothis)
    Yes, things have to change, and a likely change will be increasing prices.
    But increasing prices won't work. They have large margins of profit. People won't stand to price increases and will most likely go elsewhere.
 
 
 
The home of Results and Clearing

3,696

people online now

1,567,000

students helped last year
Poll
Will you be tempted to trade up and get out of your firm offer on results day?
Useful resources

Groups associated with this forum:

View associated groups

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.