Prime Minster David Cameron has urged private sector employers to pay higher wages because the oil price is down and inflation is low. Thus they are much better off and 'Britain should have a pay rise'. He also wants the minimum wage to rise to £8.00 per hour, the same figure favoured by the leader of the Labour party.
If Cameron was a genuine believer in the free market he would be campaigning for the abolition of the minimum wage, not wishing it to become even more embedded. Abolition is more likely to raise wage rates more quickly than state intervention. It is an excuse for lazy employers, and unions for that matter, to keep the market under control, and to give them an easy life into the bargain.
A freer market in the workplace both in wages and freedom of contract of employment would not only give much-needed flexibility and more freedom for the individual but render many of the doubtful practices used to get round it un-necessary.
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