We could always suppose that it had to happen at some point, that given the Resolution Foundation’s propensity to comment upon the economy that they might, someday, discover the basics of economics. That they’d then manage to misunderstand would also have been a reasonable conjecture.
And so it has come to pass:
Almost a third of Britain’s lowest-paid workers have lost their job or been furloughed in the past two months as those earning least bore the brunt of Britain’s Covid-19 economic shutdown, a thinktank has said.
The Resolution Foundation said 30% of those in the lowest income bracket had been affected by the damage caused to the labour market by the pandemic, compared with only 10% of those in the top fifth of earners.
Low paid workers are those who, by definition, add little value. Highly paid workers are those who, by definition, add more value. So, the economy shrinks and less value is being added. Who is most likely to slip over that boundary between adding enough value to keep a job and adding too little value to do so?
Well, it’s likely to be those already adding little value as evinced by their being paid little to start with, isn’t it?
Still, we can at least celebrate that the Resolution Foundation has now met economics even if it’s still failing to understand it.