Are we paying too much for our employees’ wages?
When Nobel Prize winning Economists speak, how willing are we to listen? James Mirlees has recently suggested that without wage cuts “from the board room to the factory floor”, Australia’s unemployment rate will steadily rise. Announcements in the past two weeks show that Australia’s wages are growing at only 2.6%, a rate smaller than the inflation rate and some of the slowest wages growth seen in over 20 years. This combined with speculation of interest rate rises before the end of the year is likely to have a big impact on living standards, and could have “material effect on Australia’s housing bubble and household debt levels”. Perhaps it is time to begin proactively considering the possibilities of what this could mean for both individuals and business in the future.
– Peter Williams –
http://www.abc.net.au/news/2014-05-30/nobel-winner-warns-australian-wages-will-fall-or/5488374