The one shining achievement Labour could boast about until 12 months ago was that they had proved that labour could run the economy well. But in the last few months this myth has been blown away by economic incompetence and the ability of the government to contradict itself time and time again.
Today Labour let it be known that they would try to rectify some of the damage they have done low wage earners by scrapping the 10% tax rate by raising the minimum wage.
But Hang on, isn't this the same government who have been handing out below inflation pay rises to workers in order to keep inflation low ?
Have Labour abandoned their inflation targets ?
I know that the increase in the minimum wage they are proposing is meant to offset the money they have taken away so this should not lead to inflationary increases. But let us not forget that the increase in their wages will have to be met by employers, who in turn will pass this on to the customers by raising prices, which will mean an increase in inflationary pressures.
What is ironic is that tomorrow the government will seek to paint a picture of the teaching profession as being insensitive to the economy because teachers are striking over the less than inflation pay deal that has been imposed on teachers. The government's case has always been that this low pay offer was because they government wants to keep control of inflation. So why raise the minimum wage ?
Of course the reason is that the government have no other solution in order to save their necks electorally, and will readily sacrifice principles in order to gain some political advantage.
Sadly, as anyone who knows the economy can attest, inflation since the mid 1990's has had very little do to with wage rises and is much more down to global factors, such as the shortage of fuel and food which is the main driver of inflationary pressure in the UK and will remain so in the future. Again, if the government don't realise this, why should we expect them to realise that making 5.3 million people worse off is not good either. After all, I suspect many more than 5.3 million people will be feeling worse off under labour before Gordon Brown's sorry spell as PM comes to an end.