minimum wage

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The economics behind the ‘living wage’ debate

Australia has joined the global political trend towards greater wage regulation, with a recent campaign from the ACTU calling for a ‘living wage’. However, examining the predicted effects of such a change would reveal it to be based on misguided beliefs. Conor Yung explains.

Editors’ Picks — 10th May 2015

In this week’s Editors’ Picks, we continue to monitor news surrounding the Australian budget deficit; we look at how the budget fell through, and new proposals to combat the situation. We also consider how changing the minimum wage rate may impact on employment and how to cope knowing a marketing crash is inevitable.

That old chestnut: revisiting the minimum wage

 While reading fellow ESSA contributor Joey Moloney’s article I came across the under-consumption paradox. This was something that I had grappled with before in trying to reconcile the microeconomic lessons about price floors and the minimum wage with macroeconomic lessons about aggregate income and expenditure and the Keynesian Cross. It seems many other people have observed this contradiction before, including Karl Marx.

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