Ed Miliband has demonstrated again his ruthless mastery of politics. I am not being ironic. The BBC reports today that he has "unveiled plans to deliver a living wage of at least £7.45 per hour for millions of people if Labour wins the next election".
Let's examine what the consequences of this would be. In the public sector, it would mean that there was less money to go round other areas of public spending. In the private sector it would make companies forced to go along with the proposal less competitive at a stroke.
In both cases it would mean a little more pay for some, but fewer jobs for others. You could caricature this as being more like a Tory than a Labour policy, concentrating wealth in the hands of the employed rather than those looking for work (who would now of course be less likely to find it).
I am absolutely sure that Miliband, who once taught economics at Harvard, knows full well what the consequences of this policy would be. And yet he promises it nonetheless. This is why I call him ruthless. Just as with his energy price cap, he knows that there are plenty of people in Britain ill-informed and desperate enough to vote for him on this prospectus.
I think we're going to see a great deal more of this before the next election. There's a distinction between policy and politics. Sadly, Miliband looks to me brimming over with political ideas but woefully short of plausible policy.
Ultimately there's only one way to widespread prosperity, which is for this country to pay its own way in the world by providing products and services that people in other countries want to buy. If living standards are falling, it's because we aren't doing that well enough. It's depressing to sound like an unattractive character in a Northern mill drama (or, for that matter, like Alderman Roberts of Grantham), but sometimes the truth is hard to swallow.
