God bless COVID-19. After years of battling a kind of corporate wokism that was designed to destroy Australian wages via immigration (cheered on by an idiot fake left) the reality of life without mass immigration is forcing everybody to shift. Saul Eslake was certainly far from the worst on these topics over the years, mostly pointing out the pros and cons of immigration rather than advocating directly for it. Today he wraps the numbers superbly to describe what it did:
- Unemployment is falling fast in part owing to no immigration.
- With mass immigration in place, it took 29k new jobs per month to soak up the jobless.
- Without it, it only takes 17k new jobs to drive unemployment to 5% by year-end.
- The RBA may, therefore, face higher wage gains much earlier than the last cycle.
- The Morrison Government should plan cuts to stimulus spending to give the RBA wriggle room, in coding cutting FHB grants.
The chart does not lie. Mass immigration from the millennium gutted worker pricing power:
Wages share of national income
Slash immigration, restore wages growth and trigger productivity gains via automation to lifts profits and income.
A much stronger, more competitive, and fairer economic model.
