Made this comment on another thread and I thought Id share it here... One other side point... Businesss dont create jobs. Neither do business people. On the contrary, business men and woman will reduce the size of their workforce whenever the opportunity to do so profitably presents itself. In actuality, its market demand that creates jobs. The more people that purchase products, the greater the demand for industry to provide those products, and the more jobs are created. Decreasing wages decreases disposable income, and hence decreases market demand. Ginas low wages model only works if the decreased demand it creates in the Australian marketplace is compensated by increased export sales. Given that most of her product is exported, one can understand why she subscribes to it. But if you actually care about the health of the local economy being shared by the average citizen, it is an economic model that is seriously flawed. (One only has to see the extreme poverty encountered by the bottom 40% of Americans, despite their nation being the worlds richest per capita, to see how disastrous it would be.)
Posted on: Mon, 10 Mar 2014 08:32:05 +0000
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