Tiny Tim scurries for cover on wage smashing IR reforms

Few have done more to damage the Australian national interest than “Tiny” Tim Wilson. After years of poisoning the science of climate change, enjoying red carpet rides into positions of power he wasn’t qualified for, distracting the nation from historic policy reform with marginal social issues, running corrupt bucket shops to get elected, and lying on his electoral posters about which party he stood for, the bleachers today get a modicum of revenge. At the AFR:

Labor pounced on the push on Monday, especially that to exempt small and medium businesses from unfair dismissal laws, as a return to “key elements of WorkChoices”.

Liberal MP Tim Wilson, who helped arrange a business briefing for colleagues on industrial relations when Parliament last sat, said no-one was trying to undermine Scott Morrison’s edict that any policy changes must be evidence based, not ideological.

…”Our objective should be to persuade and take the community with us so we can create increased employment and wages.”

Well, you’ll have to lie to them to do that. Lie straight into their faces and treat them like such idiots that they will assuredly see straight through you. Recall yesterday at the AFR:

The briefing, for MPs who entered Parliament in 2016 and 2019, was held when Parliament sat the week before last and was organised by Liberal MPs Tim Wilson, Jason Falinski and Andrew Bragg.

One of the biggest pushes emerging from the backbench is to exempt small and medium business from unfair dismissal laws…Other targets are the enterprise bargaining system and modern awards.

…“The most obvious area of productivity improvement is in industrial relations,” she said.

If there was ever a suicidal policy for ScoMo this is it. Even ineffectual Albo could muscle up on it. The number one issue confronting households – that is, err, voters – is historically weak wages growth. The reasons why are as obvious as they are ignored:

  • the mass immigration supply shock;
  • the collapse on industrial relations standards into a wild west visa/wage theft frenzy;
  • the rise of the unregulated gig economy;
  • weakened unions and a wages hostile government;
  • rise of monopolies;
  • rise of low paid services industries.

All of these will be made worse by “reform” to awards, EBAs and unfair dismissal laws.

I used to support some of these changes but given they are already destroyed by the mass immigration economic model we now need to repair them instead if wages are ever to rise.

Moreover, this will do nothing for productivity. Indeed, it will make it worse. If labour becomes the plaything of capital then there will be no need to invest for productivity gains in anything. Capital will just hire and fire at will, import cheap foreign labour and dispense with it at will, gutting wages and hollowing out middle classes while substituting it with an endless flow of underclass coolies from offshore. The entire economy will be crushloaded and dumbed down into a cheap labour, low value-add funk. See the past decade!

Consider a simple example. Why install an automated car wash when you can boost profits more easily by exploiting twenty visa hungry Indians that will pay you to work?

That does not boost productivity and incomes. It destroys productivity and concentrates income in the hands of the few.

Australia does have a productivity problem but it is with capital not labour:

The policy fix is easy:

  • remove taxes that promote capital misallocation such as negative gearing and franking credits;
  • revitalise competition policy by breaking up oligopolies;
  • boost R&D policy;
  • install full bore gas reservation to crash energy prices;
  • slash immigration to repair education standards, as well as drop land prices;
  • reform federal state, relations to reduce horizontal tax mismatches;
  • pursue a weak AUD policy by all means possible.

Voila! A lean and mean tradable machine with higher productivity, profits and income growth as tradable sectors of the economy boom.

Tiny Tim’s businessomics intellect seems unable to grasp that reform is about injecting greater efficiency and competition into markets to increase the size of the pie for all to benefit. He prefers to increase the profits of incumbent rent-seekers at the expense of the wider polity.

If ScoMo wants to looks after his “quiet Australians” then he will steer a wide berth around Tiny Tim.


David Llewellyn-Smith

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