The Fair Work Commission has granted a pay increase to Australia’s lowest-paid workers for a good reason. Even with rising inflation, the economy is strong.
The most obvious reason for wage stagnation is the decline in unionisation over the past three decades. But you won’t hear that from government economists.
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Governments can’t undo the technological changes behind frozen wages and rising inequality. The best policy is to invest in education and training to give workers skills of value in the new economy.
Aggregate demand is being hit by the concentration of income growth among the top earners and is now a drag on economic growth.
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News that Australian CEO pay has soared to a 17-year high at a time when ordinary workers’ wages are flatlining is ultimately bad news for economic growth and prosperity.
Large companies control 88% of the agricultural export market.
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