Read with interest that Albanese wants to increase the minimum wage by 5.1% if he becomes PM. So many things wrong with this.
1. Its not up to the Prime Minister. Minimum wage decisions are decided by Fair Work Commission which is supposed to be apolitical
2. If 5.1% got up, it would be the 6th highest increase since 1980, and the highest since 2006.
3. Inflation is already starting to climb. If you add a 5.1% increase to the minimum wage, you are basically guaranteeing increased inflation.
4. The largest increases in the minimum wage correlate to recessions a few years later. The increases in 1988 (9.1% across the year), 1989 (7.6% across the year) resulted in the Recession in 1991. The increase in 2004 (7.9%) and 2006 (5.6%) resulted in the GFC in 2008.
Lets hope this never gest up. Because if it does, Albo will be steering the ship with another "Recession we had to have" arrives.
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