- Joined
- 3 July 2009
- Posts
- 27,444
- Reactions
- 24,237
I agree with the tax point, the way to increase wages is with a tax cut, that needs to be passed on.If you want to depress the economy, then depress the consumer spending that makes up 60% of the economy.
Sure you want to avoid wage inflation, but people on low wages are doing it tough because of rising costs especially power, insurance and other charges. Small business has had a tax cut, so it's time to pass some of that on to their employees.
To just give a large blanket raise to the minimum wage, just causes a knock on effect, due to relativity. All of a sudden the worker on rung one of the ladder, is getting more than the one on rung two etc.
The real fear is run away inflation, as happened in the mid 1970's, that will end up with the Aust dollar collapsing.
But who knows, that may be the plan, the whole Labor plan sounds like it came from Keating.
It is far too clever and cunning, for silly Billy and don't care Chris, to come up with. IMO
Also it is probably the only way the unions would have got on board, the way it affects the working class, there has to be something in it for the union.
So my guess is the union run Industry Funds, therefore by default the union hierarchy, do well.
The workers get a pay rise, the $ goes down, which counteracts the pay rises. Everything costs more, but we end up more competitive, with a lower living standard but cheaper housing.
Let's see how it pans out. Just my opinion.