Recently, there have been a few tips on which policies of the government will be taken to develop slow labor.
Former Prime Minister Paul’s Catering has proposed the welfare of welfare jobs – jobs will increase by 12% increase in the welfare of workers, so that workers can pay compensation for the reduction of compensation.
While the Australian Trade Union Council has demanded the government to reinstate the industrial system to ensure fair income for the minimum wage and laborers.
James Morley: The slow salary development industrializes the two major aspects of the “secular dropdown” trend around the world: low production growth and low inflation expectations. Addressing the slow salary development, these reasons should go on, not all.
If the government wants to intervene directly in the order of leverage to increase its development, it will be a remittance of salary cost control in many countries in the 1970s. It was tried to promote high inflation by holding on how the wages and prices can be set. She was a mistake and will now be a mistake, even if not only the wages and the prices.
One of the problems is that policies that have already been the most complicated of all economic markets. “Internal” (Continuous Employees) can win something on the same basis with high wages. But “out” (which will not be lost or in return changes), so many companies have provided many controls to the Rush Worker.
The Labor Market is designed for its complex agreements which is designed to promote high efficiency and effort. Due to these agreements, and confusion about adjusting wages for Infrastructure (such as an amazing high proportion of reasons for change, is zero zero even though it does not mean economically), the wage is not already adjusted enough. Is.
Although this dispute is a high change rates in labor market, flow flow between the wide flow of jobs through jobs. In further introduction introduced industries, ruining relative wages and reducing employment will put sand in the labor market wheels.
Beth Weberter: A well-established economy economy is about balance. In Australia, we have the profits of GDP, more salary development, low cost expenses and low interest rates. The problem is not inflation, but the lack of desire by the people to buy goods and services.
There is no problem with the lack of funds for investment. Nor is this a problem of high wages.
Economists know that the reliable way to increase spending in the economy is to increase at least rich income. In our case, it can be included in implementing the minimum wage payment (for example, in the hospital related industry); Increase the benefits and pensions like unemployment and family benefits; and decrease tax on low end .
There are substantial evidence that the market economy will not invest enoughly, that will work to all people who want to work beyond their own tasks. The result is low production and the result of Boom Bust economy. Therefore the government’s action is fought, and it depends on the status of the economy.
Looking at the current economic settings, the increase in wages at the bottom of the market increases and therefore can be done (with the bonus of higher productivity). And it can be a good way to increase income equality.
James Morley: I agree that the policy of the government can be important to promote the weak economy. But its effect depends on how slow it is in the economy. Currently, there is no possibility of increasing government spending or to increase tax deficit, because they will remain in a weak economy.
To solve low productive development, labor is better to improve the basic principles of production. What is the investigative commission investigations and makes recommendations based on their results? Specifically, it clearly recommends against the balance between regulation and elasticity in the Australian labor market.
The commission is now accessing higher education. It would be interesting to find results on it.
It is worth mentioning that shares in GDP workers and capital in the last 40 years are quite stable in Australia, which is approximately 55 percent and 45 percent respectively. This stability is absolutely good by the economy of economic stability. This model also shows that instead of changes in revenue share, lower production growth is more important for the development of recent slow salary.
Another reason for slow salary development is expected to be less inflation. The responsibility to address the lie with the Rescue Bank of Australia, which has set up a lower salary growth in its recent decision to keep low salaries in their salary.
Bait Weberter: The trend of falling wages has been as a result of GDP acquisition in Australia. According to the ABS, in the year 2016-17, as a part of GDP, the wages were only 52.8%, which continued at 57.1% for a long period in 1984-85. The difference between 5% points is huge.
There is a strong case for 730,400 unemployed people and one equal number who would like to work more hours, that we have a weak economy.
Market is not providing the balance of supply and supply forces that we need to get full employment and increase GDP. Required official intervention.