Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More
Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Why Not $50 An Hour?

“If minimum wages don’t reduce the number of jobs available, and we can legislate our way to greater prosperity, left-wing groups should be advocating for a much higher minimum wage than $22.10 an hour,” says ACT Leader David Seymour.

“Labour and the Helen Clark Foundation claim there’s no cost to raising the minimum wage and that we can boost productivity and grow the economy by passing new laws.

“If that’s the case, why not advocate for a minimum wage of $50 an hour?

“Basic economic theory and empirical evidence on higher minimum wages both point to fewer jobs being available.

MBIE’s advice to the Government is that a living wage would reduce the number of available jobs by 30,000.

The Treasury says a higher minimum wage won’t lift productivity, overall wage levels or job creation, and will harm international competitiveness:

  • '…the minimum wage is not likely to be the driver of a step-change in either productivity growth or wages…'
  • '…on rare occasions, the employment losses from lifting the minimum wage has been offset by employment gains from the increased consumer demand caused by minimum wage earners spending a high proportion of their earnings. However, for this to happen, the lift to consumer demand needs to be significant, the small number of people earning at or near the minimum wage makes this unlikely in New Zealand.'
  • '…the minimum wage is not an effective tool for lifting wage levels overall.'
  • '…an increase in the minimum wage that increased overall labour costs would reduce international competitiveness.'
Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

“The reality that both Labour and the Helen Clark Foundation need to confront is that workers who can’t demand a higher minimum wage will no longer have jobs as businesses automate or downsize.

“The economy is still in recession and 37,000 people lost jobs in the last quarter.

“Labour raised the minimum wage earlier this year as the economy was heading into recession and businesses into lockdown.

“Raising the minimum wage again next year would be an act of economic vandalism.

“SMEs can’t keep up with the constant stream of costs and rules being imposed by Labour.

“ACT’s caucus has seven small business owners. We understand the struggles that employers are facing.

“We would cut GST to 10 percent for 12 months and pause new minimum wage increases to boost consumption and give business owners a breather.”

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines



Gordon Campbell: On Dune 2, And Images Of Islam


Depictions of Islam in Western popular culture have rarely been positive, even before 9/11. Five years on from the mosque shootings, this is one of the cultural headwinds that the Muslim community has to battle against. Whatever messages of tolerance and inclusion are offered in daylight, much of our culture tends to be hostile to Islam when we’re sitting in the dark, with popcorn.
Any number of movie examples come to mind, beginning with Rudolf Valentino’s role (over a century ago) as the romantic Arab hero in The Sheik...
More


 
 


Government: One-stop Shop Major Projects On The Fast Track

The Coalition Government’s new one-stop-shop fast track consenting regime for regional and national projects of significance will cut red tape and make it easier for New Zealand to build the infrastructure and major projects needed to get the country moving again... More

ALSO:


Government: GPS 2024: Over $20 Billion To Get Transport Back On Track
Transport Minister Simeon Brown has released the draft Government Policy Statement (GPS) on Land Transport, outlining the Coalition Government’s plan to build and maintain a transport system that enables people to get to where they need to go quickly and safely... More

ALSO:

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.