This morning I was interviewed by Radio 2GB’s Luke Grant, whereby I demolished the RBA’s claim that Australia’s weak wage growth has been caused by the rise of older Australians in the workforce, which has supposedly raised labour supply relative to demand.
This interview was based upon yesterday’s article, entitled “RBA blames oldies for crushing wages. Ignores visa system”.
In short, the RBA has conveniently ignored that Australia’s open visa system has been the primary driver of the rise in labour supply across the Australian economy, which has eroded workers’ bargaining power, facilitated wage theft, and crushed wage growth.
