Dom Post on Min Wage

Friday’s editorial of the Dom Post endorsed calls for a $12 minimum wage. Their thinking and rationale is very sloppy.

They first claim that raising the minimum wage will somehow be a miracle cure to being a low wage low productivity country. Bzzt wrong. Increasing wages without any increase in output lowers productivity.

In a fit of economic illiteracy they compare the weekly minimum wage of $380 a week with the average household spend of $888 a week. This is like comparing apples and well not even organges but sausages. The average household has multiple children and multiple sources of income.

Saying “The CTU says that leaves a one-income minimum wage household $508 a week less than the average household to survive on.” is totally misleading and a nonsensical comparison.

The Dominion Post also ignores that very few workers stay on the minimum wage for long. They tend to be for “entry level” jobs. As people gain experience they get better jobs that pay more.

At a time when the economy is faltering and employers are laying staff off, well I can’t think of a worst time to raise the minimum wage.