I have tweeted on the article on Twitter.
More importantly, I’ve managed to get The Times to publish two comments of mine relevant to the article. My comments appear on The Times website, accompanying the online version of the article. Each comment can be found by clicking on its title.
One of the most fundamental principles of economics is that, other things being equal, the higher is the price, the lower is the quantity demanded. Applied to wages, this means that, other things being equal, the higher is the wage, the smaller is the number of workers employed.
A fundamental fact to keep in mind is that any given amount of spending can buy more the lower are prices/wages. This is a fact of arithmetic.
Whoever is concerned with raising the standard of living of the average wage earner needs to realize that that standard of living is not determined by the height of the worker’s money wages. What it is determined by is his wages RELATIVE TO THE PRICES he must pay as a consumer. Before the introduction of the Euro, every Italian worker earned millions every year—millions of almost worthless Lira. Despite being multi-millionaires, the standard of living of Italian workers was very low, because prices were extremely high.