The national minimum wage is illogical

Mark Littlewood appears on BBC Radio 5

Mark Littlewood spoke to Tony Livesey to advocate the abolition of the minimum wage.

The higher you price something, the less in consumed, he argued. The government is using this logic in considering the implementation of minimum alcohol pricing, for example. The same applies for employment. If an employer decides the productivity of work is worth £6 an hour and they cannot afford a penny more, it is illegal to offer such a job.

Looking at the regional breakdown of unemployment, especially in the North East, we are seeing the negative effects of the minimum wage. In our current economic circumstances it is not sustainable to price employers out in such a way.

The minimum wage has created an insider/outsider problem. Those inside the labour market get a slight improvement whilst those outside find it even harder to get their feet on the employment ladder.

Listen here. Segment starts at 15.30.

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