Jeremy Corbyn wage cap plan is nonsense, says his former advisor

'It made absolutely no sense' - advisor blasts Jeremy Corbyn's wage cap plan

Jeremy Corbyn has done a U-turn on the plan for a national wage cap

Wednesday, January 11, 2017

A former economic advisor to Jeremy Corbyn has lambasted his proposal of a national wage cap for the country's highest earners.

The Labour leader yesterday called for a national wage cap on the UK's top earners, as part of a fight against 'fat cat' pay. 

After the policy drew scorn from economists, he appeared to backtrack, putting forward other ideas such as income tax hikes for rich people.

David 'Danny' Blanchflower, a former advisor to Jeremy Corbyn, said the wage cap made "no sense."

"You're about as responsible for his speech as I am," he told James Whale and Ash Gould when they suggested that, as a former advisor to the Labour leader, he had a hand in it. "I think it made absolutely no sense.

"If he'd asked me about it, I'd have told him to go back to his allotment and not say anything if he was going to say this sort of nonsense. 

"To say we're going to control and cap wages really makes no sense, because one of the big things we've seen in the last 25 years is that the productivity distribution has risen at the top end [of the economy].

"Obviously there's an issue if people are paid more than their performance, but if someone sets up a firm, earns a hundred thousand pounds, pays taxes and creates jobs, to argue that's a good idea shows that you don't understand economics."

 

 

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