"Minimum
wages","37%of full-employees received less than 68% of average
income\1. Many dont live in low income households\2. Poverty depends on
dependants3. Many in poverty are unemployed\4. National minimum wage should
still help\Protects weak employees(eg with other responsibilities)\It causes
unemployment,0.5average minimum raises wage costs by 1%(depends on firm)\Labour
productivi"
"ty
can increase:","1. Efficiency wage effect(can afford more food)\2.
Better management\USA no unempl. evidence. UK wage councils were abolished
because inconsistent with market flexibility."
"The
Natural rate of unemploymnent-8%","Does not affect inflation and can
be reduced by supply side measures\Policies:\1. Increase productivity(new
capital,investment,training)\2. Encourage employers to offer jobs to LTerm
unemployed\3. Remove disincentives(high marginal tax)\4. increase
geogr.flexibility\5. Reduce work searching costs by work experience"
"Natural
unempl. is coz:","1. Trade unions+social security generocity\2. Terms
of trade in favour decrease it\3. Oil kept lower\4. Skill mismatch(rapidly
restructuring industry)"
"The
EU social charter(UK opt out)was set against social dumping(multinationals go
for least legislation+low wage","Threaty came into effect wo
charter(UK vetoed). UK accepted:\Multinationals must inform
labour\Part-time(mainly women) have equal rights\Working time(max48h,4weeks
paid holiday)"
"Wages
are now determined locally,performance related pay, 73 72%was collective, now
47%","2 types of labour-core(well
skilled,multifunctional)+peripheral(can be hired/fired easily)\Numerical(lot in
UK)and functional flexibilities exist. Numerical flex. provides more lowpaid
jobs, employed have less poverty\UK has no future as low wage economy,tecnical
markup must be high"
"Union
data","First time<50%. Proffesionals52,clerical28,sales11,80full
time,56male,62public,28private. Union denity greatest at non-privatised
firms(rail83).50+age38%,<20age5%\New PTC 01.96 union-public
service,tax,commerce union"
"Industry
in UK","1. Manufacturing declines because of losing
competitivenes(6%from world)\2. Current Ac bad(UK losing
internat.competitivenes)\3. Services is+,but 5%only from worlds\Competitivenes
of a nation is its ability to produce under free/fair market cond.goods that meet
the test of int.market,while maintaining and expanding GDP/head in L-term"
"Cost
competitiveness","1. RULC-falling,still more than competitors\a.
Earnings-rise fast\b. Productivity-good\Price competitiveness\1.
Inflation-high,Purchasing Power Partity theory suggest that ase exchange falls
UK can still be competitive\Real Exchange rate\Uk record could be better in
nonprice(high tech) areas"
"OFT+MMC(should
merge soon)looks at","1. Structure(maret share)\2.
Conduct(complaints,advertising,mergers,price leadership)\3. Performance(price
rises relative to inflation)"
"Privatisation-transfer
of govowned assets to private
sector","Denationalisation-sale\Deregulation-busses etc\Contracting
out+francising-gov pays for private company\It raised 40b. Methods\Floatation
by an offer for sale in stock exchange-state can lose money(BT) or become
unpopular(BP)\Sale by tender-hard for small investors\Private sale-can be
cheap(rover)\Management buyout!efficien"
"Nat.Industries
gain in static+dynamic","efficiency.Use isoquants+contestable markets
to show efficiency. Privatised firms can find new places to sell and increase
exports. Voucher schemes.Cross subsidation. Others follow England.Selling off
the family silver-Lord Stocton.Merchant Banks sel privatised shares."