Minimum wage- what's the catch?

[DanielMMS]

When could you get nearly 2 euros to the pound?

Never got that high. GBP1 got you 1.70e during the latter parts of 2000 which is the closest to 1:2 it has reached. On the flip side, the pound sank to 1.03e in 2009, nearly parity!

 

[Lindo]

I imagine various political and economic differences. They obviously find minimum wage a more important task than say, military spending which we have a higher rate than them (in the UK).

The minimum wage may be higher but there's probably a higher tax on corporations and the higher-earners. I know in a lot of Northern Europe countries, they have a more social society like that.

They'll be less spending/more taxt to make up for it somewhere. They're a huge economy.

 

[Skidder]

Living in Finland with amongst the highest suicide rates in the world (IIRC). And minimum wage is a dangerous tool perhaps best used to create unemployment and black economies.

 

[wkingsnorth]

If its so good in Finland, who do all the Euro Immigrants come to the UK to work.
(excluding benefits)

I vaguely remember something about there only being 3 countries which you can just come and work, the UK being one of them. Not certain though.

 

[AeoNGriM]

If its so good in Finland, who do all the Euro Immigrants come to the UK to work.
(excluding benefits)

Greggs.

 

[D.P.]

And comparing minimum wages in different countries is really pointless.

In general, UK has very high living costs, lowish wages and high taxes. it is the combination of these 3 which is unappealing. Other countries like Switzerland do have slightly higher living costs but you get a much better quality of life and service provisions so it doesn't bother anyone, and in Switzerland you get much lower taxes and higher salaries to offshoot these costs.
Some counties have slightly higher taxes, but again there are improved services to show for it.
Other countries give much higher salaries.


One of things regarding UK taxes which often slips under the radar because people talk about the head line top rate of tax is the cut-off points for the different taxes.
Even if a 40%-45% tax rate is lower than some countries (but still astronomically high really). the things is far more people enter the 40% tax band than they would in other countries. And this is true at the lower tax bands. In the UK you start paying more taxes sooner on the pay scale.

Inflation and salaries have increased faster than the cut-off values of the tax rates. This is a classic stealth tax approach. Despite not raising a a tax-band % and claiming no tax rises the tax free allowance and cut-offs don't rise resulting in increased taxes.
Same is true for many things like council tax where everyone is gettign into the hitop tax bands. Inheritance tax is another, the cut-off has not increased with house values or inflation.

 

[Cold_And_Miserable]

Finland being in Scandanavia is one of the 3 richest countries in the world assuming country is defined as having a population of millions, a military and richest takes into account PPP per capita and human development index.

So it is no surprise Finland has a better minimum wage.