Wages Frankenstein visits upon Racism Rob

From card carrying population ponzitier and fake Lefty, Rob Burgess:

As described previously, flat-lining wages are feeding into very poor retail sales figures, and both need to rebound if Australia is to genuinely complete the transition from the mining investment boom era to a more balanced period of growth.

At face value, the national accounts might seem to offer hope that this is happening. ‘Compensation of employees’ is up 3 per cent, so you might expect people to get out and spend that above-inflation rise in income.

And you’d be wrong. With some very basic number-crunching, the dire state of household budgets becomes apparent.

Economist Jim Stanford, director of the Centre for Future Work, pointed out two really nasty numbers when I spoke with him on Wednesday.

The first, which simply confirms Tuesday’s retail figures, is the latest monthly figure for the growth in household consumption.

At just 0.1 per cent, it’s the lowest monthly figure since the depths of the financial crisis in December 2008 – as the chart below illustrates.

The second problem for the consumption side of the economy is that the aggregate ‘compensation of workers’ figure of 3.0 per cent doesn’t take account of the way the workforce has grown in the past year.

The number of workers is actually up 2.6 per cent, due to population growth and more unemployed workers swapping welfare payments for a wage.

Putting those two figures together, average compensation of employees only increased 0.4 per cent over the years – a lot less than the current inflation rate of 1.8 per cent.

So while those workers taking new jobs will see a big improvement in their household budgets, the rest of the workforce is going backwards in inflation-adjusted terms.

So why do you support it then Rob? To wit:

Burgess is an openly Left commentator whining (rightly) about declining wages while continuously and vehemently defending the mass immigration that is one of the primary driver of said falls.

Nice not to have to get your hands dirty, eh mate?

Comments

  1. He doesn’t get it that the dead wages dog ain’t coming back! It’s dead, no matter how you flog it.

    In a place where we no longer produce anything of value, and we sold everything that was of value, and all we’re doing is rub-and-tug coffee shops, how can you expect that wages will grow?

    This is not a random event, it is by design and the answers lie back in time.

  2. The answer is to bring in more immigrants to increase sales and profits for business owners and reduce costs such a wages then bring in more immigrants to increase sales …. This should work. It’s like a perpetual energy machine.

  3. Raise the legal minimum price for laying a brick to $2 per brick installed.

    That would increase the income of bricklayers. What you want is the price of land to come down and perhaps the price of construction to go up. If the cost of construction goes up by 20%, the price of land should come down because the speculators have less money to spend on land.

    Require 10% of new houses to have floor heating – that would improve the quality of housing and give more work to tradies without raising the price of land.

  4. As usual, the cause of declining wages (outside of labour supply) is being over-looked.

    When you have a system in which rampant credit creation can occur, the population takes on oodles of debt (driving consumption, a large supply glut and creates a temporary jobs boost) but when the inevitable ‘ceiling’ for debt assumption is reached, debt-based consumption slows down sharply as all debt-based spending does is bring the future forward.

    What this means, practically speaking, is that dead ahead of us is a consumption black hole (along with attendant consequences which should be obvious to all but the brain dead). The supply glut needs to adjust (jobs lost) and retail (and housing bubble-related) spending craters (jobs bloodbath). Too much labour is exposed to debt-based spending which is finally coming to and end.

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