Gt's just to pay your staff, no bills just wages.

(12 x 10 = 120)
(120 x 5 = 600)

Each werk that works out at four thousand two hundred pound per week, just wages.

(600 x 7 = 4200) whom do you think will have to pay for that? Yep that's right we'll done you. You will in the price of food, services and other consumables. The cost of living just went up for everyone.

However, let's look at the individual employee, what happens to them?

Say one employee works a five day week, each shift is twelve hours.
Before you were on current "living" wage, eight pound seventy five. You make per day one hundred and five pound per week that's five hundred and twenty five pound.

(8.75 x 12 = 105)
(106 x 5 = 526)

So over the year

(525 x 4 = 2100) pw

(2100 x 12 = 25,500)

Now
(10 X 12 = 120)
(120 X 5 = 600)
(600 X 4 = 2400)
(2400 X 12 = 28800) sounds good don't it, lol wrong. The cost of living went up to accommodate your pay rise of 12.5% prepositional contributing to inflation. So in effect you're basically in the same boat you started in expect you cost an entire nations cost of living to go up.

Safety say of a mechanic whom is on sixteen pound an hour, he or she is effectively now making 12.5% less than before while for you nothing has changed, the mechanic is now wors off. Now I can hear you screeching, calm down dear. Isf rfafsing wages won't help you what will! Despair not, we can deflate our currency, the pound in your pocket worth more.

Should we try to deflate our currencies so as to return to a livable quality of life?
When money inflates it makes the purchasing power weaker, meaning a 1p sweet in 1950 is now a pound. When money deflates it makes the purchasing power stronger.

E.U economists and economists in general Believe deflation is a bad thing?

Over the past 50 the cumulative effect on Western currency is between 500-600% inflation. It's why one can't effectively live off of a minimum wage. It wouldn't be much of a problem if wages increased relative to inflation but they don't. To do that would decrease profit margins and collapse busses as well as lower growth. Because they are just as affected by weaker currency as you are.

The argument is that for some weird reason economists suggest that as prices decrease so do people's willingness to buy. But is the TRUE? If in deflation your purchasing power is up then you will be able to buy more as your money goes further. They also suggested that it is bad because people tend to borrow less living within their means comfortably. While what little they have just sitting on it becomes an investment. This seems to be a good thing to me. Rather than basing growth on debt growth (meaning that debt is a consumable product for banks and lenders and government to sell at rates that increase their profits, holding debt becomes an asset to creditor who can sell it on.) would be based on market value and production of goods and services.

I3 over 67 years. The 1950's inflation rate was 3.13%."

Just put inflation into perspective for you.

£1000 in 1950 is the equivalent of £32,572.73 in today's money. That's why you can't afford to live on the minimum wage. It's why companies profit margins aren't what they were. Also how ceos justify raising their wages. The minimum wage in the UK didn't exist till the 1990, and came in at around £3.50 - £6:50. Since then it has risen to £7 - £8.21 and a living wage of £9 per hour. That's on the high ends a 38% increase in wages.

The average CEO per hour works out today at £1020 per hour. In 1990 a Ceo expected to gain around £200 - £400 an hour. Making close to 1million or over per year. An increase of 155%.

£1000 in 1990 today is equivalent to £1,992.33, that's a difference 99%.

Interestingly since 1950 the difference is value is 3157%. A far cry from a previous figure I took from an economics paper.

See it's always worth doing your own maths.

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Workers in the UK have since 1987 saw a 68% increase in real wages. While government has increased minimum and living wages by 38%. The cumulative rate of inflation through the 90's was 112%.