Comments by "Paul Aiello" (@paul1979uk2000) on "Why Europe Needs Higher Wages" video.

  1. I don't think higher wages is the key, after all, higher wages across the board will likely bump up the price of pretty much everything to almost cancel it out and usually, goods are sold at different rates in different countries to what they can afford, that's capitalism 101, higher wages will justify companies raising their prices. What's really needed is higher wages that keep pace or are higher than inflation. On the labour force, it also makes us less competitive when it comes to producing goods, but it can also pull in talent from around the world having a higher wage. Some will say, we need lower taxes, but that isn't the solution unless we want to harm public services, which a lot of people are screaming that they need more money not less, but what could work is a reduction in corruption and more efficiency. Either way, higher wages is going to give companies more of an incentive to cut labour and automate much of it, either that or bump up prices for consumers, and considering we are on the verge of a A.I. and robotic revolution, higher wages will make the decision to cut labour very easy, which will probably impact countries that have high labour cost like Europe and North America. So higher wages isn't the solution, the cost of living is what needs being fixed, which I suspect might need government intervention and ultimately, it boils down to having a high quality of life, regardless of the wage, and that's a bit more tricky to solve, but to be fair, Europe is dominating the quality of life indexes, so we must be doing something right.
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