Thursday, May 29, 2014

Rising Cost of Living, Abbott Gov to Reduce Minimum Wage

Yes you read the title correctly. That’s exactly what the Abbott Governments Commission of Audit is recommending among other drastic measures to end Australia’s apparent terrible economic hardship and bring the budget back into line.

In a recent article published on TheGuardian.com, the Commission of Audit has stated that the reduction in the minimum wage is to be carried out over a 10 year period and to be done by keeping it one percentage point behind inflation.

The minimum wage should be frozen for a decade, reduced to 44% of average weekly earnings and vary between states and territories, according to the Commission of Audit.

An interesting fact that appears to be overlooked by those reporting on the issue is that indeed we will see more and more inflation. For those that aren't aware of just how our money supply works, inflation is like a hidden tax. According to INFLATION, THE HIDDEN TAX by Lawrence Wilson, MD

Inflation reduces the buying power of your money, so you become poorer, even if you have the same amount of money in the bank or in your pocket. 

Therefore by recommending a reduction in the minimum wage the Federal Government is saying they have a desire to increase the disparity between the have’s and the have nots. Those that are already struggling on the minimum wage will see the little money they do have becoming increasingly worthless due to the hidden tax called inflation.

The more of this fiat currency that’s in circulation, the less it’s actually worth!

So why is the Commission of Audit making these drastic recommendations? Well according to them…

“If the minimum wage is too high relative to income support than many unemployed people – particularly the low skilled and inexperienced – will be priced out of the labour market and struggle to find employment,” the report said.

That’s right, according to them it’s about jobless figures. Everyone knows that a key platform for re-election by any government is their unemployment rate. If the Abbott Government can stand on the stage and boast a low unemployment figure they believe voters will take that into consideration when it comes time to go to the polls. And what does any single term government want?  A second term.

However, I don't believe this is just about the unemployment rate. This to me looks like appeasing big business and corporate cronyism. If corporations don't have to pay their staff more money, in fact, less money, they're sure to be more willing to pony up party donations for Abbott’s re-election bid.

Source:
General Maddox, realnewsaustralia.com, drlwilson.com, theguardian.com

2 comments:

  1. scecticle#3@live.comThursday, May 29, 2014

    sounds like over here in uk

    ReplyDelete

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