freediver wrote on Oct 3
rd, 2020 at 9:55am:
Quote:Your assumption and Milton's theory in the OP are wrong.
Why do you think that?
Quote:It is highly dominated by other factors and in practice does not tend to produce the expected result.
You regularly see employers whine about the lack of employable resources and do not see any increase in wage levels.
You are confusing spin with reality. I am talking about the reality.
Quote:One great example may be farm workers you hobby horse where a lack of employees has led to government intervention and cheap off shore labour. The exact opposite of the claim.
This is not the exact opposite. It is entirely consistent with my claim.
By the way, I once had a union rep tell me that allowing more foreigners to enter the Australian workforce in their sector of the economy will increase wages.
Not if they are consigned to an under minimum wage exemption.
Quote:You are confusing spin with reality. I am talking about the reality.
Which is shown by you sticking with unsupported technical theory where and I show real life examples ?
As a wage driver employment demand is one factor.
Balanced against this is:
Affordability.
Economic conditions
Government intervention. (IR)
IR:
The major changes in 1996, 1997, work choices, Fair Work, Penalty rates decision etc all worked to drive wage levels down and often crushing the other wage level drivers in the process.
Government IR policy for many decades has been dominated by a desire to prevent other factors having an impact of wage levels and has been successful.
This isn't a secret the Howard government for example openly bragged about their success on wage control.
This means that they were proud of their efforts to stymie market drivers on wages.