The Wet Rot Think Tank

Government policy for many years has been to make the more educated people and fewer uneducated people.  This has been achieved through higher standards in school, everyone staying in education until the age of 18, and more people going to university.

The logic is that with more educated people, wages across the board will be higher, and therefore more people will be better off.  Jobs that pay a low wage will not be able to compete for workers, and thus employers will have to innovate to keep costs down.

Increasing economic output with the same labour pool is what makes western democracies rich, and countries like India and China where there is abundant labour poorer.

When labour costs are lower, less is achieved by more people.

Recently, HM. Government has sought to increase the number of educated people in the country by way of immigration.  With more bright people, there will be more bright ideas, and the level of innovation will be higher.  These immigrants can achieve more in a free and open society with strong universities than they can in their relatively restrictive home countries, so they choose to move to England.  It is a win-win.

However, despite this rhetoric, many immigrants are referred to as ‘low skilled’ labour.  This description means they are not university educated.  Their value to the economy is that they will earn less, and be happy for it.

English professionals think the working class won’t work.

‘Low skilled’ jobs are not being filled because the wage is lower than English people want to work at.  The labour market must expand to find workers willing to work at this wage, and thus immigrants are needed to contribute to our economy.

In other words, HM. Government policy has shifted to make the working class bigger and the educated class smaller. 

This means more people in our country will earn less, which disincentivises innovation to reduce labour costs, apart from increasing labour supply.  Innovation is not encouraged, and thus the economy is not producing more with the same.  This means the economy is not growing. 

The economy is not growing because of immigration.  More working class people are on lower wages because there is more competition for fewer jobs.  Innovation has stalled because there is no incentive for innovation when labour costs are suppressed.  Workers who do not speak English well are more dependent on their employer and easier to exploit. 

Thus, a permanent racialised working class is created, that can remain forever poor while English professionals grow richer, and GDP per capita becomes weaker. 

Mars