National maximum wage? A good idea or a recipe for disaster?Published on: 20th August 2015
We’re all used to hearing about the national minimum wage. There are constant debates about what level it should be set at and how changes to the UK minimum wage will impact on business. Should there be a living wage? Will increasing the minimum wage really help lower paid workers?
Well now Jeremy Corbyn, one of the candidates for the Labour leadership has started a new debate with his radical suggestion for a national maximum wage. The candidate claimed it was a “philosophical question really.”
The idea of capping wages or enforcing a national maximum wage is one that certainly won’t be well received by business sand industry. The UK is already experiencing a skills shortage in areas such as construction, IT and engineering. The continued growth of the UK economy is dependent on the skills of experienced business leaders and entrepreneurs.
To implement a national maximum wage could exacerbate the existing skills shortage and encourage those currently earning high salaries to look for alternative opportunities overseas creating a brain drain which would almost certainly damage industry and the economy.