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Minimum Wages, Immigration, Culture and Education.

Net migration to the UK has run at hundreds of thousands a year for decades, of which about a quarter since 2004 has been “A8 countries”, Poland, the Baltic states, Czech Republic, Slovakia, Slovenia and Hungary, another quarter from ‘Core EU’ and the rest from non-EU countries, mainly India, Pakistan and West Africa. 13% of the population of the UK was born overseas, of whom over 2/3rds are non-EU migrants. This is an unprecedented migration to the rich world from the poor, and It’s not clear from this EU migration is the underlying problem. The Poles will integrate fast, and leave imprints on the culture like a higher incidence of catholicism, bigos (a stew of meat and Sauerkraut) and some hard-to-spell surnames. They’re often better educated than the natives, and work harder.

In general the view I’ve taken over the years is that minimum wages are a bad thing, arguing that they are mainly paid for by the people who otherwise wouldn’t get a job at all. Only a job can lead to a better job, and if people are unemployed for a long time, they often become unemployable. So by this logic, keeping unemployment down should in the long-run be better for the poorest.

But, there is a trade off. When I grew up, late ’80s and ’90s, I cannot recall seeing cars washed by hand. When my father wasn’t exploiting child labour by getting me and my brother to do a rubbish, half-arsed job for which we expected to be paid handsomely, we went to see the “blue Dougals” at the petrol station. The UK as a wealthy country, had substituted Capital for Labour, and cars were washed by big machines at every petrol station. But a team of a dozen hard-working and cheerful eastern Europeans can set up a car-wash, do inside and out for very little capital outlay – a jet washer, and some sponges, so when the EU accession countries citizens moved to seek work, this is what many did. The car wash machines were gradually removed and replaced by people. This is the opposite of progress.

Labour substituted for capital

Let’s take a step back and look at the big picture.

Europe’s wealth, it’s vitality, its progress didn’t spring from European individual or cultural superiority. It started when half the population was wiped out by Yersinia pestis in the 14th Century. There was a certain amount of luck – the same event increased the power of the landowner in Rice states and in pre-feudal societies farther East, but in Northwestern Europe, this created a shortage of Labour, and the peasants rose up a generation afterwards to demand higher wages from their lords. When this happened in Italy, the energy was put into sculpture of the nude male form, and was called “the Renaissance”. When wages rise, it makes sense to build machines rather than employ labour, which has a virtuous feedback loop: skilled people running the machines drive up production, and become richer, which creates an incentive for further innovation. More widespread desire for, and access to education is grease in the wheels of this, the motor of progress that led to the industrial revolution.

The opening up of America, a nation with a perpetual and long-lasting shortage of labour not only added another motor to that European culture of innovation which grew up after the Black Death, but also absorbed the excess labour of Europe. While there is a labour shortage, immigration can be managed, though immigrants in large numbers have nowhere, ever been welcomed by the people they move to. Even when the people are kith and kin, the ‘Scots Irish’ (in reality, families originally from Northern England and the Scottish Borders) were moved on by the Germans and English who’d already settled the East coast. They ended up in Appalachia.

It’s clear, then in the short run and in aggregate, wages aren’t “driven down” by migration in a market economy. Part of that, in modern times may be due to the minimum wage, which protects some of the people most vulnerable to substitution, but also the ‘lump of Labour fallacy’. Immigrants, especially young workers with families bring demand as well as supply and these things more-or-less balance. They aren’t “taking our jobs” but they are changing the nature of jobs available. And the vast supply of excess labour from the subcontinent, Africa and the poorer bits of Europe is not exactly an incentive to invest in productivity-enhancing machines, as the car-wash example shows. The mass immigration from the poor world has the potential to stall the western motor of innovation and may contribute to wages not rising as far as they might, especially for the lowest skilled workers.

The UK has a problem with productivity. UK employers have got good at employing the excess Labour of a serious chunk of the world, UK wages have been flat for a decade, and these things are linked. So the Chancellor is hiking the minimum wage in the hope of good headlines, and to incentivise investment to drive productivity. So. What effect will this have on immigration? Will it draw more migrants to the UK hoping for higher wages, like European immigration to the USA, or will it price low-skilled immigration out of the Labour market, and allow the motor of progress to continue?

Splits that used to be geographic – some countries were rich, and others poor and the movement between the two was rare, is moving to one where there are still two countries, it’s just the divide is social, educational, and cultural. You have a global, liberal, free market culture, which values education and novelty. And you have national, small ‘c’ conservatives who just want their own culture, don’t care about education all that much, won’t move to find a job, expect to be looked after who stay put and resent incomers. And the latter are disproportionately annoyed about foreigners moving into “their” neighbourhoods while it’s the former who have more to fear in the short term from highly skilled competition, minimum wages see to that. And if minimum wages rise far enough, low skilled workers will not be able to get jobs and they will stop coming to the UK. The problem is, the lowest skilled people are often native. The cost of a raised minimum wage will be borne by those least able to cope.

If we are to avoid society fracturing permanently into Morlocks and Eloi we do need to manage migration, to keep that motor humming. We cannot let the world come at will. But there was no need to pull up the drawbridge against EU migrants who always looked like collateral damage to me.

It’s not all about economic self-interest, nor is it wholly naked in-group preference (what educated, open minded people call “bigotry”). It is the interplay between the two. Ultimately the stagnation of UK wages over the last 10 years isn’t due to migration, but the recovery from a balance-sheet recession of 2007-9. It’s the feeling of ennui caused by a decade of stagnation which has caused the anti-immigration nonsense, the rather blameless Poles have just become a Piñata and for a population that was persuaded to lash out at the EU when they really wanted to lash out at “the Muslims”. The tragedy is all this happened just as we were getting back to normal.

Nicola and Theresa. Phwooar.

The Daily Mail’s headline “Legs-it” about Scottish First Minister and British Prime Minister Theresa May’s shapely legs was pathetic. But remember, the Mail is written by women, for women, and women judge each other, all the time, harshly and vindictively. Judged especially harshly are women more accomplished or better looking than the average Daily Mail reader.

To call this “sexism” is to miss the point. This isn’t about women being held down by sexist male tittle tattle. Clearly, two of the most powerful people in the country haven’t been held down in any meaningful way. Any executive head of Government is fair game for any and all criticism. What these women have done is rise above the level at which society normally seeks to protect women from abuse.

Male politicians are made fun of for their appearance and clothing all the time. It’s the sea men swim in. Whether it’s Donald Trump’s expensive, but ill-fitting suits and too-long ties like he’s stepped out of a 1980s pop video caricature of a businessman, or Cameron’s forehead, or the fact that middle-aged men are always assumed to be repulsive, this abuse is normal.  The ridicule a male politician faces when he’s seen in public wearing anything other than a blue suit is extraordinary. From Tony Blair wearing a clean barbour, to William Hague’s baseball cap or Cameron’s beachwear, there’s a reason male politicians dress identically. When women’s clothing (far more interesting by the way, than the sober suits of most male politicians) is commented on, it enables a personal brand to be created that much easier. Theresa May’s shoes are like Margaret Thatcher’s handbag. True, women do have to think harder about their clothing – too much leg, cleavage etc… and you immediately invite scorn (of other women, mainly), but the fact the female wardrobe stands out against the endless blue/grey suits and red or blue ties of the male is as much an opportunity as it is a minefield.

Any comment about May’s shoes, for example is part of her deliberately curated brand, and shoe-designers are falling over themselves to get their products onto her feet. This isn’t sexist. Women like shoes, and there’s no reason why Theresa May shouldn’t have fun with them.

Lower down the pecking order there’s a taboo against men commenting negatively on a woman’s appearance, lest you hurt the poor dear’s feelings. Yes male ‘locker room’ banter will discuss who’s attractive, but it’s rude to do so in front of women and by and large, gentlemen don’t. Women don’t typically have these conversations about men in earshot of men either, but describing men as “revolting” or “creepy” is so normal as to be unworthy of comment, and completely unnoticed. May and Sturgeon have risen above this social protection, and are subject to the same rules of engagement as men are. i.e that if we have feelings, tough.

These women are grown-ups doing important jobs. If you think the Mail’s light-hearted front page is an insult to them, you’re an idiot. Of course Sarah Vine who wrote the thing, knows exactly the response it would get, howls of idiot outrage from the usual suspects on Twitter, and from Sturgeon herself. This allows the paper to swat the complaints aside with contempt. This signals to their readership that the Mail is on their side against the bien-pensant left with their idiotic & totalitarian outrage about human trivialities. May by rising above it, does the same. The Mail is one of the Best-selling papers in the UK, and one of the world’s most visited “news” (ish) websites. Who won that exchange?

The po-mo left, obsessed with identity politics, used to being able to bully dissenting opinion down STILL hasn’t got the new rules of the game. Someone’s pointed out the Emperor’s naked, but he’s still acting like he’s in charge and hasn’t noticed the mood’s changed. Yet.

Completely unrelated, but thank you to the Anonymous commenter who wrote this. It cheered me up.

The Mary Whitehouse Experience

The “Bastards” who see the British membership of the European Union as the central question of politics are not only petty-minded nationalists. They are also mostly small-minded, authoritarian christian bigots. They aren’t just coming for free movement, they’re against gay marriage too. They’re against most of the modern world. It’s true, I do agree with them on the economic questions of the 20th century, but that no longer matters, the economic liberals’ victory is pretty comprehensive.

Leadsom represents the conservatism of Mary Whitehouse, not Margaret Thatcher. This is why Leadsom has such enthusiastic support from UKIP. She is the culture war, as well as the brexit candidate. This isn’t about Europe. It’s not about economics. It’s not left and right. It’s open vs closed society. 
They don’t just want to reverse the European Union, but roll back the “permissive society” of the 1960s. These are the purse-lipped miserablists who write into local papers complaining about “filth” on TV or “hooligans” in the street, who in reality are just boys playing football. This is the racist aunt, who now feels confident to say she doesn’t like Mrs Patel in no.34 because she smells funny. This is the Daily Mail (Paper, not website) made flesh, obsessed by what other people do in the bedroom, and absolutely terrified someone, somewhere might be having fun.
This is where we are, when Theresa May is the standard bearer for the liberal cause. What a time to be alive.