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employers are not the only people who are worried about the nlw. the living wage foundation has been accused of not understanding the concerns of the business community. the supposed impotence of this pillar of the campaign to raise the minimum wage is one reason why the nlw has been rejected twice in uk by the house of commons. in its report, the foundation and the house of commons finance committee also claim that the nlw is not consistent with the government's free-market ideology. thats certainly not true. rather, this is an example of how the ideology of the new right, which is currently growing rapidly in the uk, is increasingly hostile to state intervention, especially when it affects the poorest. that is just as true of the neoliberal ideology of the conservative and liberal democrat coalition government as it is of the labour government. in the uk the right, spearheaded by the tory party, is firmly opposed to living wage policies. labour and the liberal democrats have been daunted by this growing force and have shown little interest in challenging the political consensus on living wages. this is a british example of the political economy of fear that has gripped the whole of europe as the single currency joins together the economic interests of the continent. the only salvation for the poor and the working class is to reject this cynical manoeuvre, as we have done before.
the foundation defends its position by claiming that, if businesses do not like the nlw, they can move away from deprived areas. this is an incomplete and hollow argument because if they do so, they will have to pay their staff more to make up the difference in wages and in addition, they will lose any profit they gain from their business. they will also be faced with the prospect of paying higher corporation taxes, which will also bite into their profits. the only way to avoid all these problems is to live wage and unionise the workplace. we are grateful that the living wage foundation has decided to act as a non-partisan voice for the living wage, but its argument that the nlw is not a free-market issue is part of the problem, not the solution. employers are as much caught up in the ideologically driven nature of the nlw as are workers and their families. the nlw is but one example of the way that the right is trying to use free-market ideology to dismantle the welfare state and dismantle the fight against poverty. this is the way of the reactionary, not the way of the progressive. ec9bc5542f








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