I noted this this morning but it’s now gone mainstream:
Labor has labelled a radio interview with Employment Minister Michaelia Cash a “train wreck” after she was unable to explain why the government had cautioned against “excessive” increases in the minimum wage, in part because low-paid workers are “often found in high-income households”.
In its submission to the Fair Work Commission for the annual wage review, the government warns big increases in the minimum wage will cost jobs, particularly for young people, because wages growth remains moderate and inflation is low.
3AW’s Neil Mitchell wanted to know what the government meant when it said those on the minimum wage were “often found in high-income households”. This exchange followed:
CASH: Well basically, what we look at is completely all of the information that is provided and what we say to the commission is you need to ensure that you take in to account the economic outlook that in particular, in particular, how we are going to support employers…
MITCHELL: Yes, I understand all that. But what do you mean by…
CASH: … you have high income person in the household…
MITCHELL: Oh dear…
CASH: … but then you’ll often have a second person in the household that doesn’t necessarily earn as much money..
MITCHELL: Okay, righto. So there are about 200,000 people..
CASH: That’s right. That’s exactly right.
MITCHELL: So how many of those 200,000 people have got fat rich parents at home?
CASH: Oh well it’s not necessarily fat rich parents and I’d never say that…
MITCHELL: Alright, well how many people, how many of these low income earners, earning their $17 an hour go home to a wealthy support?
CASH: Aww look, and again, that is not what the Government is saying…
MITCHELL: Yes it is!
The interview continued:
CASH: Well as I said there’s only about 200,000 workers that are actually paid at the minimum wage and that is why when you actually look at where the majority of workers lie, the vast majority of people are paid under awards and they actually receive more.
MITCHELL: I understand that, but what percentage of the 200,000 as you say in your submission found in high income households?
CASH: Well, it’s not so much what percentage…
MITCHELL: Well of course it is!
I don’t have much time for Specufestor Cash as she lurches from hiding her new investment property from tax-payers to cutting wages for the most vulnerable but, let’s face it, the problem here is not just her. It’s the idiotic policy of trying to force low income owners to wear the entire cost of adjustment in the post-mining boom economy.
