Supporters of the Howard Government’s recently-passed workplace reform legislation are supporting a race to the bottom as a way out of unemployment and are wrong to blame high minimum wages for causing unemployment.
If workers don’t have money in their pockets and consequently spend less, then that will cause more unemployment, not less. Sharing around a miserable amount of money won’t change things one iota.
Henry Ford recognised this years ago when he doubled wages and halved the working week. This resulted in a massive increase in production as workers were happy and could also actually afford to buy the Model T Ford.
c/- London, UK