When even Australia’s most conservative policy institution agrees we have a wages problem…

Dr Richard Denniss, Chief Economist for The Australia Institute, joins Life Matters as the election spotlight turns to flat wages growth and what we can do about it

The Reserve Bank of Australia is Australia’s most conservative policy institution
Dr Richard Denniss, Chief Economist at The Australia Institute

“When the Coalition was elected in 2013, the then Employment Minister Eric Abetz said there was a wages explosion and he was going to stop it.

“Well he succeeded. Credit where credit’s due. We’ve now got the lowest rate of wage growth on record in Australia” — Richard Denniss

“The Reserve Bank of Australia is probably the most conservative policy institution in Australia…and the RBA says wage growth is too low and we need to do something about it” — Richard Denniss

“So politicians, especially conservative politicians, are very worried about the trials and tribulations of living in retirement on $50,000 a year, tax-free in your own home, after your kids have left home.

“But when people who are earning less than $40,000 — trying to get the kids off to school, trying to pay the rent — say that perhaps they don’t have enough income, we’re calling them greedy” — Richard Denniss

“Why would the government be forecasting employment growth and wage growth at the same time if the people at Treasury believe that wage growth is bad for job creation?” — Richard Denniss

an independent think-tank based in Canberra > australia.org.au

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store