Fair Work Commission bungholes employers and consumers

Discussion in 'Markets & Economies' started by mmm....shiney!, Jun 1, 2018.

  1. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    18,537
    Likes Received:
    1,873
    Trophy Points:
    113
    Location:
    昆士蘭
    Despite GDP rising below expectations in 2017, a very modest 2.3%, the Fair Work Commission has decided to award an increase of 3.5% to workers. FFS!! :mad: 2017 annual inflation rate was under 2%.

    The workplace is not a welfare system, it is a production line for enhancing consumer wealth. Increasing the costs of production without a concurrent increase in productivity destroys wealth. Just another example of the failure of central planning.

    Screen Shot 2018-06-02 at 8.47.01 am.png
     
    Shaddam IV likes this.
  2. JulieW

    JulieW Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    12,752
    Likes Received:
    1,835
    Trophy Points:
    113
    Location:
    Australia
    They're trying to inspire wage growth and inflation.
     
    mmm....shiney! and Shaddam IV like this.
  3. Shaddam IV

    Shaddam IV Well-Known Member Silver Stacker

    Joined:
    Mar 22, 2010
    Messages:
    7,170
    Likes Received:
    1,876
    Trophy Points:
    113
    Location:
    House Corrino
    I guess it will cause wage growth and inflation. Offset by reduced employment and even higher prices for those who can afford it the least. Fair Work seems to like driving people onto welfare, I guess it creates the poverty/welfare underclass they need to keep their bosses voter base topped up.

    IMG_2960.JPG
     
    leo25, lowtech, JulieW and 1 other person like this.
  4. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    18,537
    Likes Received:
    1,873
    Trophy Points:
    113
    Location:
    昆士蘭
    Welfare alo exists in the workplace.
     
    Shaddam IV likes this.
  5. Shaddam IV

    Shaddam IV Well-Known Member Silver Stacker

    Joined:
    Mar 22, 2010
    Messages:
    7,170
    Likes Received:
    1,876
    Trophy Points:
    113
    Location:
    House Corrino
    Truer words were never said.
     
    mmm....shiney! likes this.
  6. JulieW

    JulieW Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    12,752
    Likes Received:
    1,835
    Trophy Points:
    113
    Location:
    Australia
    Expect big pushes for wage growth when Labor gets in next year. That'll get the inflation popping.

    Got Gold?
     
    Shaddam IV and mmm....shiney! like this.
  7. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    18,537
    Likes Received:
    1,873
    Trophy Points:
    113
    Location:
    昆士蘭
    The focus on wage growth is misleading. I think Labor focusses on nominal wage, as do unions. Real wage growth is more important and awarding a wage rise above the rise in GDP does not improve real wage growth - as you say all it does is increase inflation. Both monetary and price. So tough times ahead for all. Again.
     
  8. reaver

    reaver Active Member

    Joined:
    Apr 25, 2016
    Messages:
    220
    Likes Received:
    99
    Trophy Points:
    43
    Location:
    Melbourne
    Govt logic: Gotta make inflation somewhere
    If the air is slowly letting out of assets then it makes sense that they would attempt to inflate the more consumable goods and services.
     
  9. JulieW

    JulieW Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    12,752
    Likes Received:
    1,835
    Trophy Points:
    113
    Location:
    Australia
    As the saying goes history does not repeat but does rhyme. I've read that there are signs of stagflation developing and the 1970 s looks very similar to now. I don't think it would take too much to repeat those sort of circumstances. If that sort of environment repeats it's hard to see how they will put the Genie back in the bottle this time.
     
  10. Big A.D.

    Big A.D. Well-Known Member Silver Stacker

    Joined:
    Oct 30, 2009
    Messages:
    6,593
    Likes Received:
    226
    Trophy Points:
    63
    Location:
    Sydney
    As you say, real wage growth is more important...

    ...and it's been trailing GDP growth since the global financial crisis so workers have, in real terms, been treading water or getting poorer since then.

    ProductivityVWages.jpg

    You can see the same thing borne out in labour's (wages') share of nation income relative to corporate profits being at 50 year lows.
     
  11. leo25

    leo25 Well-Known Member Silver Stacker

    Joined:
    Jun 8, 2010
    Messages:
    2,917
    Likes Received:
    1,011
    Trophy Points:
    113
    Location:
    Sydney
    Good thing most companies don't abide by minimum wage laws anyway, so these new laws won't change much. And like already mentioned, the few companies that do abide by minimum wages laws will do more firing.

    Good to see government being consistently useless and destructive. Maybe if they didn't spend so much time pumping up the property market, people would have more money to spend in the general economy and thus create the price inflation they are after.
     
    bordsilver and Shaddam IV like this.

Share This Page