Recession is a good time to boost profits says Cameron aide (thanks to Turborama for LBN heads-up
The prime minister's adviser on enterprise has told the cabinet that the economic downturn is an excellent time for new businesses to boost profits and grow because labour is cheap, the Observer can reveal.
Lord Young, a cabinet minister under the late Baroness Thatcher, who is the only aide with his own office in Downing Street, told ministers that the low wage levels in a recession made larger financial returns easier to achieve. His comments are contained in a report to be published this week, on which the cabinet was briefed last Tuesday....
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Competitors who fall by the wayside enable well-run firms to expand and increase market share. Factors of production such as premises and labour can be cheaper and higher quality, meaning that return on investment can be greater."
A Downing Street spokesman said Young was merely stating a "factual point and nothing else". But the comments were described as "appalling and ill-timed" by union leaders, with job-market figures due out next week expected to show that the initial resilience of employment has faded while wages are being severely tightened.
(Much more at link)
http://www.guardian.co.uk/business/2013/may/11/young-recession-cheap-labour
Mind you, he's doubtless just saying what many of his colleagues and their chief backers think inwardly!
= new reply since forum marked as read
that's the problem with the Guardian using their online front page as an index , where was it posted in LBN - can't find any reference to it. 
