Passion not politics will decide Scotland's future

IN A SIGN that the pressure is building the leaders of the three main parties will travel to Scotland today to promote the better together campaign.

Forgoing Prime Minister Questions David Cameron, Ed Milliband and Nick Clegg are hoping that by providing a united front they will sway undecided voters to their side.

With eight days to go until the referendum the trio may find that it is too little too late, particularly as in an attempt not to alienate current supporters they will not be appearing on the same platform. Instead the 'united front' will be more of a three pronged attack as they travel to different parts of the country to give impassioned pleas to Scots to remain in the United Kingdom.

In a joint statement yesterday Messrs Cameron, Milliband and Clegg stressed that keeping Scotland in the union was their priority.

"That's why all of us are agreed the right place for us to be tomorrow is in Scotland, not at prime minister's questions in Westminster.

"We want to be listening and talking to voters about the huge choices they face. Our message to the Scottish people will be simple: 'We want you to stay.'"

With recent polls showing the two sides level and the Yes campaign still gaining momentum this last ditch attempt to play on the passions and emotions of voters may not be enough to stave off a split next week though.

Leader of the Yes Campaign Alex Salmond has called the move a sign that the No campaign is panicking as the threat of Scottish independence looms large on the horizon.

 "'I relish David Cameron, Ed Miliband and Nick Clegg coming to Scotland - collectively, they are the least trusted Westminster leaders ever, and this day trip will galvanise the 'Yes' vote.

"No-one believes their panicked pledges - it is a phoney timetable for measly powers. A 'Yes' vote delivers a real timetable for the full powers that Scotland needs."

He added: "The No side have lost their poll lead, and people are switching directly over to Yes - if David Cameron thinks he is the answer to the No campaign's disintegration disarray, let him put his case to the test in a head-to-head debate."

The recent news from polling results will not be adding to the confidence of the No campaign. Having already thrown Gordon Brown into the fight in a desperate bid to appeal to core labour voters they are now showing that they have started to realise that this campaign will be won on emotions rather than logic.

Where the campaign has failed is that it has tried to combat Mr Salmond's passionate patriotic propaganda with rational arguments, most notably about currency. This is not going to be a vote based on the head though. When people vote on independence it will be with their hearts. For months cries of "Freedom" and "Bannockburn" have resonated far more than "the pound" and "taxes". As both sides enter the final leg one day of passion may not be close to enough to save this troubled marriage.

Ed's soundbite could leave a lasting scar

ED MILLIBAND’S announcement that a Labour government would revise the current minimum wage runs the risk of being a soundbite that leaves a nasty scar.

The Labour leader did not give details about the exact figure his party would set for a new minimum wage; however, he did say that it would be linked to “average earnings”.

Speaking to party activists in the West Midlands Mr Milliband said: "The minimum wage will rise by more than average earnings in the economy as a whole as part of a five-year ambition to restore the link between doing a hard day's work and building a decent life for your family."

According to statistics produced by the OECD based on Purchasing Power Parity, when the price levels between countries is expressed in a common currency, the United Kingdom ranks below France, Australia and Ireland in terms of minimum wage.

Mr Milliband’s statement comes as voters in Switzerland rejected calls to raise the national minimum wage to approximately £15 per hour, which would have made it the highest in the world, amid claims that it would drive up production costs and increase unemployment,

While British Prime Minister David Cameron and Liberal Democrat leader Nick Clegg have also stated that they would look at raising that minimum wage, should they be elected in the 2015 general election, business leaders have expressed concerns about its impact on the economy as a whole.

Based upon economic models rise in minimum wages above the equilibrium level determined by markets could lead to an increase in unemployment and living costs. As the minimum wage rises above the level at which it becomes competitive for firms to produce goods then it seems almost certain that companies will look to recoup the additional costs through layoffs according to sceptics.

The same arguments were proposed when the minimum wage was first introduced with little effect on the labour market. Opponents of the move have claimed that this is because the wage at the time was lower than the level of equilibrium for markets, whereas proposals to raise the minimum wage now could lead to this being pushed up.

What seems more likely, however, is that an increase in the minimum wage would lead to equivalent rises in production costs across the board. Thereby absorbing the extra costs for most companies, while negating the purpose of the rise as living costs increase overall.

If Mr Milliband is serious about creating a minimum wage rising by more than average earnings then he must be careful to ensure that the relevant apparatus is implemented to ensure that it does not lead to an increase in inflation and negate any benefit it may have had.