19 March

Another example of the ideas of penetration. ‘Higher wages kill jobs’. Hearing that a lot with the election coming up. If you see every individual as isolated from everybody else, then that might be true. But wage-earners are also customers, and more money for them means more cashed-up customers. Customers and business mutually penetrate. The numbers on wage growth and jobs are clear, wherever they’re studied. If you pay people more, they have more money to spend, at businesses. Everybody wins. If you want to stimulate the economy, give the money to workers, not business. It will then flow to businesses. Workers are the engine room of every economy, not businesses.