WEBVTT - Tariffs, Brexit Benefits and the Minimum Wage 

0:00:02.720 --> 0:00:18.640
<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News. Welcome to the Marrin

0:00:18.680 --> 0:00:21.040
<v Speaker 1>Drugs Money Weekly round Up, our debrief on the biggest

0:00:21.079 --> 0:00:23.320
<v Speaker 1>stories in the markets and economics. I'm Marrin Sum's that

0:00:23.400 --> 0:00:25.480
<v Speaker 1>web editor at large for Bloomberg UK Wealth.

0:00:25.840 --> 0:00:29.080
<v Speaker 2>Now I'm Joined Stappeck, Senior report at Bloomberg and author

0:00:29.120 --> 0:00:30.480
<v Speaker 2>of the Money Distilled newsletter.

0:00:31.760 --> 0:00:34.280
<v Speaker 1>So, John, you know people say to us all the time,

0:00:34.920 --> 0:00:38.239
<v Speaker 1>can you list Brexit benefits for us? What did you

0:00:38.240 --> 0:00:40.280
<v Speaker 1>get out of that? What's the big win?

0:00:40.479 --> 0:00:40.760
<v Speaker 2>Listen?

0:00:41.400 --> 0:00:43.440
<v Speaker 1>And now finally here we are a couple of years

0:00:43.440 --> 0:00:46.840
<v Speaker 1>on admittedly, but we've got a very obvious stand up

0:00:47.560 --> 0:00:51.159
<v Speaker 1>Brexit benefit. We've got a very obvious stand up Brexit

0:00:51.280 --> 0:00:53.159
<v Speaker 1>benefit thanks to Donald Trump.

0:00:53.720 --> 0:01:00.000
<v Speaker 2>Yes, thank you Donald. We're going to get charged Lord Tardiff's.

0:01:00.080 --> 0:01:02.880
<v Speaker 2>And if we remained in the EU, which is actually

0:01:02.920 --> 0:01:06.080
<v Speaker 2>pretty good because it also means that we can negotiate

0:01:06.080 --> 0:01:08.520
<v Speaker 2>our way out of even the ten percent that we're

0:01:08.959 --> 0:01:12.200
<v Speaker 2>meant to be paying quite quickly, whereas if we were

0:01:12.200 --> 0:01:15.600
<v Speaker 2>stuck as part of the EU, then we to Macro

0:01:15.760 --> 0:01:18.000
<v Speaker 2>and talking a big game because he's coming up for

0:01:18.080 --> 0:01:21.040
<v Speaker 2>elections soon and needs to act a hard mind and

0:01:21.120 --> 0:01:24.920
<v Speaker 2>also whatever all the other countries decide that they want

0:01:25.040 --> 0:01:27.280
<v Speaker 2>to do, so it's gonna be pretty difficult to chat

0:01:27.319 --> 0:01:29.319
<v Speaker 2>about that one. So yeah, it is a bonus. And

0:01:29.400 --> 0:01:31.760
<v Speaker 2>this part of the reason, it is explicitly part of

0:01:31.760 --> 0:01:33.759
<v Speaker 2>the reason were left to be more flexible.

0:01:33.959 --> 0:01:36.200
<v Speaker 1>Yeah, to be inflexible, also not to get bogged down

0:01:36.240 --> 0:01:39.200
<v Speaker 1>and the endless negotiations. But it's first before before the

0:01:39.240 --> 0:01:41.839
<v Speaker 1>EU can negotiate with the US, they have to negotiate

0:01:41.880 --> 0:01:44.959
<v Speaker 1>with each other, and that handless and relentless and as

0:01:45.000 --> 0:01:46.479
<v Speaker 1>you say, tied up in an awful lot of big

0:01:46.520 --> 0:01:48.600
<v Speaker 1>egos and who's getting elected when and who needs to

0:01:48.600 --> 0:01:52.360
<v Speaker 1>look like to their own voter base, etc. And here

0:01:52.760 --> 0:01:54.760
<v Speaker 1>are you saying that Kirstama doesn't need to look like

0:01:54.800 --> 0:01:55.760
<v Speaker 1>a hard man.

0:01:56.200 --> 0:02:01.200
<v Speaker 2>No, I don't think he does. I think Britain when

0:02:01.200 --> 0:02:04.280
<v Speaker 2>it comes to the USA, there's just you know, there's

0:02:04.360 --> 0:02:07.240
<v Speaker 2>just the current electorate anyway, he's kind of four years

0:02:07.240 --> 0:02:11.320
<v Speaker 2>away from an election. You can't get much less popular anyway.

0:02:11.800 --> 0:02:14.480
<v Speaker 2>But also I don't I don't think that the average

0:02:14.720 --> 0:02:18.200
<v Speaker 2>British person is that bothered about sort of making some

0:02:18.280 --> 0:02:20.280
<v Speaker 2>big stand on America because at the end of the day,

0:02:20.280 --> 0:02:22.560
<v Speaker 2>the reason that we've got ten percent tariffs is because

0:02:22.560 --> 0:02:25.120
<v Speaker 2>we don't you know, we don't run a good deficit

0:02:25.240 --> 0:02:28.760
<v Speaker 2>with them, so it's just not that big a deal.

0:02:29.040 --> 0:02:31.639
<v Speaker 1>And services one included in this brand of tariffs, and

0:02:31.680 --> 0:02:33.920
<v Speaker 1>we are mainly a service economy for good or bad.

0:02:34.240 --> 0:02:36.120
<v Speaker 2>Well, yeah, and I don't think they will be no.

0:02:36.240 --> 0:02:38.960
<v Speaker 1>I mean, this is about rebuilding America's manufacturing person it's

0:02:39.000 --> 0:02:40.200
<v Speaker 1>not about the services sector.

0:02:40.400 --> 0:02:42.640
<v Speaker 2>Yeah, And I said, I mean the services thing is

0:02:42.680 --> 0:02:44.960
<v Speaker 2>interesting too because it does tie into the Brexit stuff

0:02:45.000 --> 0:02:48.720
<v Speaker 2>again because one problem that we always had with the

0:02:48.720 --> 0:02:52.680
<v Speaker 2>EU is that the goods area was basically broadly sping

0:02:52.800 --> 0:02:55.520
<v Speaker 2>open borders, but we can never get any kind of

0:02:55.520 --> 0:02:59.200
<v Speaker 2>agreement on the services site, partly because you know, that

0:02:59.360 --> 0:03:02.839
<v Speaker 2>would have been more helpful for us because that's where

0:03:02.960 --> 0:03:07.760
<v Speaker 2>all of economy was. So it's just flagging that up again.

0:03:08.400 --> 0:03:11.800
<v Speaker 2>You know, it kind of stuck with a situation which

0:03:11.800 --> 0:03:14.440
<v Speaker 2>we were when in anything and the you know, we're

0:03:14.480 --> 0:03:16.920
<v Speaker 2>in a bit of possession for being liberated from that.

0:03:17.960 --> 0:03:21.440
<v Speaker 1>There we go see exciting times. Now this actually isn't

0:03:21.480 --> 0:03:23.600
<v Speaker 1>really about us, and it's not really about the UK

0:03:23.720 --> 0:03:27.280
<v Speaker 1>relationship with the US. This is in the main about China.

0:03:27.400 --> 0:03:29.600
<v Speaker 1>Pretty much. You know, the biggest tarraf is not absolutely

0:03:29.600 --> 0:03:31.560
<v Speaker 1>the biggest, but some of the biggest are on China

0:03:31.639 --> 0:03:34.520
<v Speaker 1>and Chinese goods, and added to the previous tariffs on China,

0:03:34.560 --> 0:03:37.120
<v Speaker 1>it doesn't make it really very high. And the same

0:03:37.240 --> 0:03:39.960
<v Speaker 1>for a lot of the countries that the US thinks

0:03:40.000 --> 0:03:42.520
<v Speaker 1>that China might run goods through to get them into

0:03:42.560 --> 0:03:44.760
<v Speaker 1>the US. So what we have here actually tell us

0:03:44.760 --> 0:03:46.880
<v Speaker 1>about the islands, John tell Us about the Islands.

0:03:47.800 --> 0:03:51.280
<v Speaker 2>Yeah, I know, it's interesting because we saw quite a

0:03:51.280 --> 0:03:55.720
<v Speaker 2>few tweets to be talking about who Trumps slapped to

0:03:55.760 --> 0:03:58.920
<v Speaker 2>ten percent TATA for aliens that have done nothing more

0:03:58.960 --> 0:04:02.920
<v Speaker 2>than penguins level knowing them. And the mutual friend Marcus

0:04:02.960 --> 0:04:05.880
<v Speaker 2>as was pointed out to me that well, I said, look,

0:04:05.920 --> 0:04:08.120
<v Speaker 2>this isn't as daft as it looks. If you want

0:04:08.160 --> 0:04:12.320
<v Speaker 2>to stop ships running contraband goods, then you take a

0:04:12.320 --> 0:04:14.520
<v Speaker 2>look at all of the flags they might be running

0:04:14.600 --> 0:04:17.120
<v Speaker 2>until not just the flag is a ship. And so

0:04:17.200 --> 0:04:19.280
<v Speaker 2>it's the same with us. It's that you can't root

0:04:19.560 --> 0:04:22.440
<v Speaker 2>goods through venue I to see because suddenly it's the

0:04:22.480 --> 0:04:25.120
<v Speaker 2>only country in the world without any tartaffs on it.

0:04:25.640 --> 0:04:27.760
<v Speaker 2>So it's it's basically just covering all the bases and

0:04:27.800 --> 0:04:29.120
<v Speaker 2>making sure there's no look poles.

0:04:29.240 --> 0:04:32.440
<v Speaker 1>Yeah, but imagine if everyone now reached their goods through us,

0:04:32.880 --> 0:04:40.000
<v Speaker 1>that would be terrible finally get some use anyway, So

0:04:40.040 --> 0:04:41.560
<v Speaker 1>it all comes back to the fact that, I mean

0:04:41.640 --> 0:04:43.240
<v Speaker 1>a lot of this is going to unwind over the

0:04:43.240 --> 0:04:45.560
<v Speaker 1>next few days, a few weeks, a few months, or

0:04:45.600 --> 0:04:49.000
<v Speaker 1>the negotiations will be will begin, these tariffs stay. There

0:04:49.000 --> 0:04:52.200
<v Speaker 1>are lots is going to change, but nonetheless all their

0:04:52.240 --> 0:04:56.799
<v Speaker 1>stems right back to China entering the wto the big

0:04:56.839 --> 0:04:59.560
<v Speaker 1>competition globally over the last couple of decades to be

0:04:59.680 --> 0:05:03.120
<v Speaker 1>the I guess exporter, all this mercantilism, et cetera. It

0:05:03.160 --> 0:05:05.640
<v Speaker 1>comes back to the same thing we always talk about,

0:05:05.640 --> 0:05:11.720
<v Speaker 1>this rise of globalization that has driven inequality inside X

0:05:11.760 --> 0:05:15.039
<v Speaker 1>manufacturing economies X manufacturing economies of course, because all the

0:05:15.040 --> 0:05:17.960
<v Speaker 1>manufacturing and the high paid jobs in those areas have

0:05:18.120 --> 0:05:20.680
<v Speaker 1>ended up off sure driven inequality in some of the

0:05:20.680 --> 0:05:23.080
<v Speaker 1>Western countries. Looks like it's driven a lot of the

0:05:23.120 --> 0:05:26.360
<v Speaker 1>inequality in the US. And so someone was always going

0:05:26.400 --> 0:05:28.800
<v Speaker 1>to step in and say this doesn't work.

0:05:29.880 --> 0:05:33.719
<v Speaker 2>Yeah, I mean, it is interesting because before all this

0:05:34.520 --> 0:05:37.200
<v Speaker 2>and before it was kind of Trump that was in charge,

0:05:37.400 --> 0:05:41.440
<v Speaker 2>there weren't a lot of complaints even from slightly more

0:05:41.520 --> 0:05:45.840
<v Speaker 2>left lean and economists. For example, Germany needed to spend

0:05:45.880 --> 0:05:48.880
<v Speaker 2>more and of the biggest consumer economy. People have been

0:05:48.880 --> 0:05:51.240
<v Speaker 2>seeing the same thing about China for years in fact,

0:05:51.320 --> 0:05:55.360
<v Speaker 2>I mean arguably China has sort of attempted but kind

0:05:55.360 --> 0:06:01.279
<v Speaker 2>of futilely a biggest consumer economy. And so again, Trump's

0:06:01.360 --> 0:06:04.040
<v Speaker 2>kind of just pushing for something that people have been

0:06:04.080 --> 0:06:09.599
<v Speaker 2>complaining about as being clearing flaws in the global economy

0:06:09.080 --> 0:06:14.720
<v Speaker 2>for something for my entire career. So I think you

0:06:15.200 --> 0:06:17.240
<v Speaker 2>might not be very happy about the way he's going

0:06:17.279 --> 0:06:19.440
<v Speaker 2>about it. But at the end of the day, the

0:06:19.520 --> 0:06:23.080
<v Speaker 2>previous softly softly approaches clearly we're not working, whereas this

0:06:23.320 --> 0:06:28.240
<v Speaker 2>is doing something I don't know. I think it creates

0:06:28.240 --> 0:06:31.440
<v Speaker 2>an awful lot of uncertainty and volatility in all the

0:06:31.480 --> 0:06:36.919
<v Speaker 2>rest of it. But it's definitely pushing it towards the

0:06:36.960 --> 0:06:39.200
<v Speaker 2>resolving the things that people have been complaining about for

0:06:39.240 --> 0:06:41.880
<v Speaker 2>a long time but haven't liked the potential trade offs

0:06:42.520 --> 0:06:44.919
<v Speaker 2>that that would imply, where the things they don't like

0:06:45.000 --> 0:06:45.719
<v Speaker 2>to be fixed.

0:06:46.200 --> 0:06:49.000
<v Speaker 1>Yeah, So as ever, with him, it's an amplification of

0:06:49.040 --> 0:06:55.320
<v Speaker 1>an existing trend. Yeah, yeah, right, speaking of which, bizarrely,

0:06:55.720 --> 0:06:59.719
<v Speaker 1>today on the Bloomberg UK website, the most popular article

0:06:59.760 --> 0:07:02.800
<v Speaker 1>is absolutely nothing to do with harr, has nothing to

0:07:02.800 --> 0:07:05.160
<v Speaker 1>do with global and equality, and nothing to do with Trump.

0:07:05.360 --> 0:07:07.800
<v Speaker 1>It's all about the UK. It's minimum wage. And you

0:07:07.880 --> 0:07:11.520
<v Speaker 1>wrote this, I mean, fascinating piece of this on wage

0:07:11.920 --> 0:07:15.200
<v Speaker 1>wage suppression in the UK. Tell me about that. I

0:07:15.200 --> 0:07:16.640
<v Speaker 1>agree with you. By the way, I agree with every

0:07:16.640 --> 0:07:18.040
<v Speaker 1>word in this article.

0:07:18.040 --> 0:07:20.920
<v Speaker 2>That genre really interesting. It's more you know, I've got him.

0:07:21.000 --> 0:07:23.560
<v Speaker 2>I was a little bit surprised they kind of mentioned

0:07:23.560 --> 0:07:27.200
<v Speaker 2>that this is as well, but yeah, it's basically about

0:07:27.240 --> 0:07:29.840
<v Speaker 2>the minimum wage going up to the point where it

0:07:29.960 --> 0:07:32.360
<v Speaker 2>is counter productive. And I just took a we look

0:07:32.400 --> 0:07:35.000
<v Speaker 2>at the statistics. So the minimum wage was introduced in

0:07:35.080 --> 0:07:38.320
<v Speaker 2>nineteen ninety nine and it was with three pounds sixty

0:07:38.320 --> 0:07:40.200
<v Speaker 2>and I heard at that point and now it's going

0:07:40.280 --> 0:07:43.280
<v Speaker 2>up to over twelve pounds an hour. But if you

0:07:43.320 --> 0:07:47.600
<v Speaker 2>look at the gap between the average elenins for a

0:07:47.840 --> 0:07:51.280
<v Speaker 2>forty forty nine year old in the UK, and what

0:07:51.320 --> 0:07:53.480
<v Speaker 2>I've done is I've just basically assumed that if you're

0:07:53.520 --> 0:07:57.280
<v Speaker 2>a full time worker, you can basically say that age

0:07:57.320 --> 0:08:01.280
<v Speaker 2>is kind of like approxate for seniority case, so a

0:08:01.280 --> 0:08:04.480
<v Speaker 2>full time marker in the UK in two thousand and

0:08:04.560 --> 0:08:08.720
<v Speaker 2>three times what a minimum wage worker got, and then

0:08:08.760 --> 0:08:11.880
<v Speaker 2>over the last kind of twenty five years that's falling

0:08:12.480 --> 0:08:17.440
<v Speaker 2>to just over twice as much. So that's called wage compression.

0:08:17.520 --> 0:08:20.880
<v Speaker 2>And the basic argument is that there's two problems. One

0:08:20.960 --> 0:08:24.640
<v Speaker 2>problem is that you're getting paid less for taking on

0:08:24.760 --> 0:08:29.880
<v Speaker 2>more responsibility, so it's less attractive to go for those jobs.

0:08:30.320 --> 0:08:34.000
<v Speaker 2>And the other big issue is that between industries it

0:08:34.080 --> 0:08:38.079
<v Speaker 2>gets harder a differentiat between basically jobs that most people

0:08:38.120 --> 0:08:41.839
<v Speaker 2>would say are easier or more appealing to do than others. So,

0:08:41.880 --> 0:08:44.840
<v Speaker 2>for example, you've get a choice between working a care

0:08:44.920 --> 0:08:47.640
<v Speaker 2>home with everything that that entails and the level of

0:08:47.640 --> 0:08:51.720
<v Speaker 2>actual responsibility that entails for looking after sick people and

0:08:51.800 --> 0:08:55.760
<v Speaker 2>actually working a relatively clean job at Tesco, say, and

0:08:55.800 --> 0:08:57.920
<v Speaker 2>they both pay the same amount, or you know, there's

0:08:57.960 --> 0:08:59.760
<v Speaker 2>only fifty per an hour in it, then it's going

0:08:59.800 --> 0:09:02.679
<v Speaker 2>to be much harder for the less pleasant jobs to

0:09:02.720 --> 0:09:06.400
<v Speaker 2>get recruited for. This has a big impact on the

0:09:06.640 --> 0:09:12.360
<v Speaker 2>jobs market, on the morale of people within your organizations.

0:09:13.080 --> 0:09:15.080
<v Speaker 2>And I suspect that this get something to do with

0:09:15.640 --> 0:09:17.640
<v Speaker 2>poor productivity. It's clearly not the.

0:09:17.600 --> 0:09:22.360
<v Speaker 1>Only issue productivity, because people don't try harder to get

0:09:22.360 --> 0:09:24.640
<v Speaker 1>promoted or to move up a level at work because

0:09:24.640 --> 0:09:27.120
<v Speaker 1>it's it's much less worth the bother than it used

0:09:27.160 --> 0:09:27.320
<v Speaker 1>to be.

0:09:27.760 --> 0:09:32.199
<v Speaker 2>Yeah, and then you throw in everything else that's happening well,

0:09:32.240 --> 0:09:35.160
<v Speaker 2>for example, obviously the marginal tax rates and the fact

0:09:35.200 --> 0:09:37.199
<v Speaker 2>that if you had over one hundred thousand pounds and

0:09:37.240 --> 0:09:40.560
<v Speaker 2>you've got kids, you can actually end up losing money

0:09:40.960 --> 0:09:43.800
<v Speaker 2>because you won't get your free childcare. The other thing

0:09:43.840 --> 0:09:46.439
<v Speaker 2>that's been happening recently that didn't put in but this

0:09:46.559 --> 0:09:51.960
<v Speaker 2>idea of equal pay for basically just different roles. So

0:09:52.120 --> 0:09:55.120
<v Speaker 2>recently there was this rule in the Asda the men

0:09:55.200 --> 0:09:58.680
<v Speaker 2>that because more men worked in the warehouse than women,

0:09:59.559 --> 0:10:01.800
<v Speaker 2>the the people on the shop floor, so we can

0:10:01.920 --> 0:10:03.920
<v Speaker 2>pay the same as the people in the warehouse. And

0:10:03.960 --> 0:10:08.160
<v Speaker 2>that is not what most people assume is meant by equality.

0:10:08.200 --> 0:10:10.440
<v Speaker 2>You know, equality is meant to be that if a

0:10:10.480 --> 0:10:12.800
<v Speaker 2>guy's sweeping the floor and a woman sweeping the floor,

0:10:12.800 --> 0:10:15.400
<v Speaker 2>they both get paid the same. It's not meant to

0:10:15.400 --> 0:10:18.840
<v Speaker 2>be that if somebody is like stacking shelves and somebody's

0:10:18.880 --> 0:10:21.600
<v Speaker 2>kind of running to tell that's the same job, because

0:10:21.760 --> 0:10:24.200
<v Speaker 2>it's not the same job. It's a different job, and

0:10:24.320 --> 0:10:27.120
<v Speaker 2>there should be a market rate for these jobs rather

0:10:27.200 --> 0:10:30.480
<v Speaker 2>than something that's imposed. The point is that there are

0:10:30.520 --> 0:10:33.600
<v Speaker 2>so many jobs now that basically pay the exact same

0:10:33.600 --> 0:10:36.679
<v Speaker 2>amount or it's very close to it, and that makes

0:10:36.679 --> 0:10:40.560
<v Speaker 2>it much much harder to differentiate. And then again because

0:10:40.640 --> 0:10:42.679
<v Speaker 2>so much money, because the minimum wage has gone up

0:10:42.720 --> 0:10:45.960
<v Speaker 2>so far and so fast, there's less money left over

0:10:46.160 --> 0:10:49.600
<v Speaker 2>for anyone not getting paid minimum wage, which means that

0:10:49.640 --> 0:10:52.839
<v Speaker 2>again you can't maintain the differentials, which used to be

0:10:52.880 --> 0:10:56.599
<v Speaker 2>a really important thing in union negotiations. I've listened to

0:10:56.640 --> 0:10:59.240
<v Speaker 2>a lot of the Dominic Sandbrook books about the seventies.

0:11:00.160 --> 0:11:01.760
<v Speaker 2>Thing that comes up a lot of the time and

0:11:01.920 --> 0:11:05.000
<v Speaker 2>the talks about the unions is like the wage differentials

0:11:05.040 --> 0:11:07.360
<v Speaker 2>really mattered. You know, those meant to be a gap

0:11:07.400 --> 0:11:10.000
<v Speaker 2>between the guys doing one job and the guys do

0:11:10.120 --> 0:11:13.320
<v Speaker 2>another job, and the ones who were you know, they

0:11:13.400 --> 0:11:16.959
<v Speaker 2>kind of the more senior people were very aware of

0:11:17.000 --> 0:11:18.640
<v Speaker 2>how much more they were meant to be getting paid

0:11:18.640 --> 0:11:21.040
<v Speaker 2>than the people below them. So again, if you if

0:11:21.080 --> 0:11:24.640
<v Speaker 2>you can compress that, then you're causing real problems in

0:11:24.720 --> 0:11:27.320
<v Speaker 2>terms of people's desire basically work hard.

0:11:27.120 --> 0:11:29.120
<v Speaker 1>That well and in terms of the status and the

0:11:29.200 --> 0:11:33.720
<v Speaker 1>improved lifestyle that they feel comes with working harder. Yeah,

0:11:33.760 --> 0:11:35.800
<v Speaker 1>And I suppose student loans feed into that as well,

0:11:35.800 --> 0:11:38.080
<v Speaker 1>don't they, Because you reach a certain a certain income,

0:11:38.160 --> 0:11:41.280
<v Speaker 1>relatively low income, and suddenly you've got another nine percentage

0:11:41.280 --> 0:11:44.600
<v Speaker 1>points of marginal tax rate. So that takes away from

0:11:44.640 --> 0:11:47.079
<v Speaker 1>your interest in earning more money as well. If you're

0:11:47.080 --> 0:11:49.120
<v Speaker 1>a graduate, which increasing numbers of people are.

0:11:49.200 --> 0:11:52.280
<v Speaker 2>Well, yeah, I mean Duncan Robinson and the economist too,

0:11:52.280 --> 0:11:54.400
<v Speaker 2>I think makes the button we'd call them, wrote something

0:11:54.480 --> 0:11:56.640
<v Speaker 2>but this's a couple of weeks ago and basically made

0:11:56.679 --> 0:11:58.920
<v Speaker 2>the point that if you work a forty hour week

0:11:59.200 --> 0:12:01.840
<v Speaker 2>minimum wage and the UK now you'll be getting paid

0:12:01.840 --> 0:12:04.200
<v Speaker 2>more than twenty five pounds a year, and twenty five

0:12:04.280 --> 0:12:07.280
<v Speaker 2>thousand pounds is the point at which the graduate attack

0:12:07.480 --> 0:12:11.760
<v Speaker 2>kicks in. So if you're a graduate, are you what

0:12:11.880 --> 0:12:14.679
<v Speaker 2>in a minimum wage job? Then you are getting less

0:12:14.720 --> 0:12:18.400
<v Speaker 2>than someone who they didn't graduate and is working the

0:12:18.400 --> 0:12:21.720
<v Speaker 2>same minimum wage job. So I mean, on the one hand,

0:12:22.080 --> 0:12:24.959
<v Speaker 2>the good news is that maybe people will think twice

0:12:24.960 --> 0:12:26.000
<v Speaker 2>about going in the unit.

0:12:26.480 --> 0:12:29.000
<v Speaker 1>None of these policies were intenders to bring us to

0:12:29.040 --> 0:12:31.360
<v Speaker 1>a world where people thought carefully about going to university

0:12:31.400 --> 0:12:33.200
<v Speaker 1>because they'd end up with a lower net income and

0:12:33.240 --> 0:12:34.640
<v Speaker 1>some working on the minimum wage.

0:12:35.080 --> 0:12:38.480
<v Speaker 2>Yeah, that's pretty counterproductive, regardless of what you think is

0:12:38.520 --> 0:12:40.800
<v Speaker 2>the value of a university degree.

0:12:41.400 --> 0:12:43.840
<v Speaker 1>Counterproductive policy. We're about to find out quite a lot

0:12:43.880 --> 0:12:47.000
<v Speaker 1>more about that, aren't we over the coming weeks and months.

0:12:47.000 --> 0:12:50.120
<v Speaker 1>The extent to which American policy is counterproductive. This is

0:12:50.160 --> 0:12:52.199
<v Speaker 1>bigger than whether a couple of people in the UK

0:12:52.360 --> 0:12:55.560
<v Speaker 1>go to university or not. We will be talking more

0:12:55.600 --> 0:12:58.880
<v Speaker 1>about the tariffs and the global economy over the coming week,

0:12:58.960 --> 0:13:02.280
<v Speaker 1>so listen in and hopefully things will begin to settle

0:13:02.360 --> 0:13:10.080
<v Speaker 1>down a little. Thanks for listening to this week's Maren

0:13:10.080 --> 0:13:12.280
<v Speaker 1>Took's Money Debrief. If you'd like a show, rate review,

0:13:12.320 --> 0:13:14.920
<v Speaker 1>and subscribe wherever you listen to podcasts. Also be sure

0:13:14.920 --> 0:13:16.560
<v Speaker 1>to follow me in John on x or Twitter at

0:13:16.559 --> 0:13:19.920
<v Speaker 1>marens w and John underscore Steppe. This episode was produced

0:13:19.920 --> 0:13:22.240
<v Speaker 1>by Moses and Questions and comments on this show and

0:13:22.320 --> 0:13:24.880
<v Speaker 1>all our shows are always welcome. Our show email is

0:13:24.880 --> 0:13:27.160
<v Speaker 1>marrin Money at Bloomberg dot net.