Griff Witte: While Britain’s other major parties back a minimum wage hike, it is Conservative support that is most surprising. Just 15 years ago, Conservatives vigorously opposed the very creation of a minimum wage. Just last autumn, they balked at pleas for a substantial increase. But this month, the nation’s top economic official — known as the austerity chancellor for his cheerless calls to cut budgets and benefits — startled the political establishment by declaring that it is time to spread the wealth. The announcement reflected the unusual consensus developing in Britain over how to distribute the spoils of the economic recovery. It also highlighted a stark contrast with the United States. The United States and Britain are emerging from the wreckage of the Great Recession on parallel trajectories. In both countries, unemployment is falling even as wages continue to stagnate and the gaps between rich and poor widen. Analysts say that an increase in the minimum wage would give Conservatives the opportunity to reward and encourage work — while possibly reducing the amount of tax benefits offered to the working poor. And yet, the potential political benefits are no less a factor. With elections a little over a year away, the parties have been competing to claim credit on not just the minimum wage, but on other proposals to put money into people’s pockets by cutting their tax, energy and mobile-phone bills. Politicians with the opposition Labor Party have been warning for months of a cost-of-living crisis in Britain and are expected to make the issue the focus of their campaign.
Posted on: Mon, 27 Jan 2014 14:03:59 +0000
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