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.