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Economic Vandalism Confirmed

“The Government has chosen voodoo economics over proven economic realities by arbitrarily increasing the minimum wage to $20 an hour, a decision it admits could result in as many as 9000 fewer jobs being created next year,” says ACT Leader David Seymour.

“Workplace Relations Minister Michael Wood says for too long we’ve been a low wage economy, but he thinks the way to change that is by endlessly adding costs to businesses.

“Asked on Morning Report what business owners already under financial pressure should do if they found the new minimum wage too steep, he essentially told them the Government has shown great them benevolence over Covid-19 and they should suck it up.

“What’s worse, he’s signalled today that another three years of annual minimum wage increases are on the way.

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

“Businesses simply won’t be able to keep up with the constant stream of costs and rules being imposed by Labour, including the sector-wide ‘fair pay’ agreements that are still to come.

“Things may look relatively rosy now with epic borrowing being pumped into the economy, but Labour’s chickens will come home to roost sooner or later, nothing is surer.”

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