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the pathway to greater inequality « Previous | |Next »
November 22, 2005

I'm not sure that Moir has got this one right:

Moir, Bend it like Beazley

IR is not a spectacular missed opportunity for Beazley. The IR reforms will not lead to all workers getting higher pay and more jobs. The issue is more of a slow burn, as the reality of 'any job is better than no job' sinks in to mean greater income inequality and poverty for many.

IR is slow burn that dovetails into the way that Government changes to welfare will create a new underclass of working poor reliant on charities, family and friends to supplement low wages, church-based employment organisations. Instead of creating incentives for people to find work, the biggest changes in the system in decades will force people on welfare to accept jobs with no award conditions or pay rates or face the suspension of their benefits for eight weeks. The big problem is that as the dole is withdrawn and tax is paid on wages, those going from welfare to work still often see around forty cents in each additional dollar they earn.

That is a slow burn. But how slow?

On the other hand, Moir may be onto something. The ALP defence is one of protecting the rights of workers. How does that square with the small business desire for a more deregulated labour market? Would not small business be influential in some marginal ALP seats?

| Posted by Gary Sauer-Thompson at 7:36 AM | | Comments (0)