ACTU’s ‘trickle-up’ minimum wage demand ridiculed

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By Leith van Onselen

The Australian Council of Trade Unions (ACTU) has been ridiculed for releasing projections arguing that a $50 increase in the minimum wage would create 40,000 to 57,000 jobs. From The AFR:

…economists say unions assume wage increases will appear as if “manna from heaven” and fail to consider any effect of higher labour costs on employers’ demand.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.