On wage growth

John Richardson writes: Re. “Australia’s weak wages won’t be fixed by multinational tax cuts” (yesterday). I reckon Glenn Dyer and Bernard Keane have got it all arse-about when it comes to the world of self-delusion. There is absolutely nothing delusional about the behaviour of those engaged in the systemic exploitation of the world and its resources on behalf of a voracious minority.

Their activities are essential to convincing the majority that the pain they are experiencing is good for them and that life really was meant to be horribly cruel and ugly, except for the minority in-charge. And if we really don’t get that, then we never will really appreciate the unending sacrifices being made by our political and business masters on our behalf, as they strive to protect us from the world’s evils. The real reason that the likes of Scott Morrison and the leadership of the Business Council do such a poor job of spruiking their wares is that they are just simply too dumb or too arrogant to care.

Sadly, not enough of the super-rich and their political enablers understand that their grasp on privilege is extremely tenuous and that if they get too greedy, they could lose it all. The wiser understand that there really is a danger that when the majority of have-nots recognise that their situation will never improve, they just might decide that if it’s good enough for them, it should be good enough for everyone.

Wayne Robinson writes: Henry Ergas of The Australian made the same argument about cutting company tax. He reckons that companies want to make a certain, say 10%, return on capital after tax, interest and depreciation. If a company tax cut increases the return on capital to 12% for example, then the philanthropists in corporations will use the extra 2% and pay their workers more than is necessary to attract or retain them, instead of paying more in executive bonuses. Somehow, I don’t see it happening.

 

 

Peter Fray

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