Lurked101
"Then we come to where this gets really complicated, for every 10% increase in unskilled labour we get a 2% fall in unskilled wage rates. So a decrease in immigration would put wages up. On the face of this, its a good thing. However, this would lead to rising costs for British businesses, reducing international competitiveness and putting jobs at risk."
This analysis is distorted by the fact that low paid workers the UK as so badly paid, the taxpayer has to subside their wages. I find it obscene that there is a justification for driving down workers wages still further. All that will happen is the taxpayer (middle class) will pick up the tab.. The only people that truly benefit from this scheme are the owners of corporations (who also don't pay much tax either) and surprise, surprise benefit from the EU.
All the free movement of labour does is make the system a level playing field so that none of the low paid workers in the EU can earn enough to feed themselves. Spreading the poverty equally among everyone.
I cannot believe that a person on the minimum wage is a net contributor when they receive more in in work benefit than they pay in tax. At this level, there is little spend for luxury goods and most of their income will go on rent and food which are zero rated for VAT. This is before they send their children to school, walk on the pavements and use the parks. I don't begrudge them their use of the system but to to say they are net contributors is a stretch too far.
The only way our country gets richer is by exporting goods and services goods and thus importing money. So to illustrate this point, if 100,000 people came to the UK and setup car hire businesses that hired cars to other UK residents, there is no export activity associated with this activity so the country will not get richer. However, what is does do is introduce competition into the sector that makes everyone a little worse off. Supply and demand. Then we'll need houses, schools and doctors for these newly arrived 100,000 people. Where does the money come from to finance this? It is the same effect that an over supply to labour has.
What this country needs to do is spend the billions we send the EU investing to make the UK more competitive and encouraging business, startups and innovation for export.