Exact(7)
As the cost of benefits rises, wages tend not to rise, or to rise much more slowly.
That is what Germany and many far eastern countries did, with benefits rises, tax holidays and consumer scrappage schemes.
When people are out of work, they don't pay any taxes, and spending on unemployment benefits rises.
A right-leaning government that's handing out benefits rises – it seems unlikely, but could the UK follow suit?
So if the cost of health benefits rises, employers ought to be able simply to cut wages or pass on those costs as higher prices to customers.This theory is correct over the long term but falls apart in the short term, argues Len Nichols of the New America Foundation, a Washington, DC-based think-tank.
Although middle-earners saw incomes rise marginally after 2013, policies including the bedroom tax and below-inflation benefits rises have reduced incomes for the poorest, pitching an estimated 760,000 into poverty since the last official figures were produced, according to the New Policy Institute (NPI) thinktank.
Similar(53)
The number of people seeking unemployment benefits rose last week.
The number of Americans seeking unemployment benefits rose 34,000 last week.
The number of policyholders for private health benefits rose 37 percent from 2005 to 2011.
The number of people continuing to receive unemployment benefits rose to an 18-year high.
The market got off to a bad start after applications for unemployment benefits rose unexpectedly last week.
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