So said Ed Miliband, to a disgruntled unemployed man in Lancashire whose frustration at the effects of Labour’s open-door immigration led him to say of politicians, ‘You’re all full of shit.’
Miliband told the man that employers undercutting wages – rather than immigration – was the cause of the problem.
This is the Ed Miliband whose supporters never tire of telling us he has a Masters degree in Economics from the LSE. Yet with that answer he demonstrates that he fails to grasp the most basic impact on price of an increase in supply, in this case a dramatic increase in the supply of unskilled and semi skilled labour.
Businesses exist to make money for their owners in return for the supply of goods or services, and the greatest challenge for most businesses is controlling their costs.
However, the fetish of politicians and bureaucrats for creating ever more regulation, combined with the financial impacts of government policy at EU and national level, the costs associated with running a business have been continually increasing. So when an opportunity to reduce labour costs – typically one of the biggest expenditures in small and medium businesses – presents itself, why wouldn’t a business hire the migrant worker who is prepared to work for a lower rate?
Miliband supported the influx of hundreds of thousands of migrant workers who increased the supply of cheap labour. Miliband supported the scandalous borrowing splurge that has resulted in more pressure on tax revenues to service the spirralling debt. Miliband supported and also directly implemented policies that have increased the costs of running a business.
Yet despite all this, Miliband has the temerity to blame employers for that unemployed Lancastrian being out of work and brazenly promises that if he is made Prime Minister he will get that poor man a job – presumably by further increasing the size of the unproductive public sector, thus further adding to pressure to increase the tax revenues taken from the wealth creating private sector.
That Lancastrian man was then schmoozed and flattered by a deceitful, delusional hypocrite to the point he exchanged a handshake with him. That man was right the first time. Miliband and his ilk are full of shit.