Traders are
demanding a wage rise, not for themselves, but for the millions of Australian
workers who are suffering very poor wage growth, and the idea has support from
high up in government circles.
“My view is that a further pick-up in
wages growth is both affordable and desirable.”- RBA Governor Philip Lowe
The Reserve
Bank Governor, Phillip Lowe, has warned of the dangers of low wages growth and
the inability to reach adequate inflation figures as we struggle to control our
economy.
Wages growth
nationally, which averaged closer to 4 per cent prior to 2008, has now been at
or below 2.5 per cent for almost five years.
According to
the ABC, “The low wage outcomes are a big factor in the RBA continually
undershooting its inflation target. It also puts a brake on household
consumption and ultimately the entire economy.” And further commented – “While
the RBA's cuts to its GDP growth and unemployment forecasts last week gained
most attention, household consumption growth was also pruned back from 2 per
cent this year to just 1.5 per cent — not exactly great news for struggling
retailers.”
The
expectation is that wages growth will give consumers more buying power and
stimulate the economy. If that happens, Trader’s own wages might see a boost.