freediver wrote on Oct 17
th, 2020 at 9:59pm:
John Smith wrote on Oct 17
th, 2020 at 7:05pm:
freediver wrote on Oct 17
th, 2020 at 7:01pm:
Dnarever wrote on Oct 17
th, 2020 at 6:47pm:
freediver wrote on Oct 17
th, 2020 at 6:39pm:
Quote:That's funny, I recall hearing the same argument FOR cutting penalty rates. But when rates were cut, it was found that they didn't create a single job ... instead there were more unemployed.
Do you think there were more unemployed than there would have been without the rate cuts?
Yes definitely the loss of jobs was industry specific. People walked and it hurt the industry.
The data shows that employees voted with their feet. That doesn't sound like unemployment. Did they vote to go on the dole?
https://theconversation.com/cutting-penalty-rates-was-supposed-to-create-jobs-it
-hasnt-and-heres-why-not-117178
https://www.smh.com.au/politics/federal/penalty-rate-cuts-did-not-create-jobs-labor-20200522-p54vn7.html
The SMH article states explicitly that Dna's conclusion should not be drawn from the data.
How about you John. Do you think there were more unemployed than there would have been without the rate cuts?
Dnarever wrote on Oct 17
th, 2020 at 8:35pm:
The reason is that business will employ the number of people that they need. They do not employ people they don't need when wages are low and they do not sack people that they do need when wages increase.
This is simplistic to the point of stupidity. If a business becomes more profitable, due to lower wages for example, it will grow. If it grows, it "needs" more employees. No business has a fixed "need" of employees.
The SMH article states explicitly that Dna's conclusion should not be drawn from the data.No a business representative said this and followed it with data that failed to support her statement.
Quote:This is simplistic to the point of stupidity. If a business becomes more profitable, due to lower wages for example, it will grow.
Why will it grow ? low wages does not contribute to growth ? Disenchanted employees on reduced wages does not encourage productivity. Employees leaving is not a positive, Hard to find replacement employees are not overly interested in low paying work. Nor are new employees efficient or effective in the workplace.
So the business may well be left with employee churn inexperienced employees and short numbers. This in turn has a negative impact on service quality.
In short typically lowering wages will make the business more difficult to grow.
Working with Mac bank their mantra was employ the best pay the best keep the best. At that time the most profitable bank in the southern hemisphere.