econ-dit Words by Jasper Roberts
On the 23rd of May 2022 Anthony Albanese was sworn in as the 31st Prime Minister of Australia. After countless weeks of riveting debate, we finally have a newly formed government. It was an election campaign full of surprises, slogans and statistics! Both sides made promises in an attempt to woo the people of Australia. Both parties had some policies and good ideas however one question that was either avoided or not asked at all was HOW these policies and promises were going to be delivered. If we begin to dive into the Australian Labor Party’s 2022 federal campaign’s policies, it is quite hard to disagree with any of the principal ideas. A 24/7 nurse at every age care facility, doubling the Philanthropy (charity) contribution, a ‘Help to Buy’ scheme for first home buyers, and support for an increase in the minimum wage. They all seemed reasonable and ideas desired by many! However, there is concern about how some of these policies will be achieved. For example, there is currently a shortage of medical and nursing staff, yet the government has promised to put a nurse in every age care facility. Now as beneficial as it would be to analyse every issue today, the focus will be on the Labor Government’s response to inflation and rising cost of living. The minimum wage is an extremely important and debated topic. Many people who are earning award rates are living below the poverty line. For the 3.2 million Australians in poverty and many others who are continuously struggling to provide for their families, Labor’s promise to increase the minimum wage 18
hopes to match the rising inflation of 5.1% and help these people battle the rising cost of living. Anthony Albanese pledged to the people of Australia that “workers’ pay should not be allowed to go backwards”, and when asked if he supported a 5.1% rise in the minimum wage (suggested by the ACTU) his response was “absolutely”. This was supported by the rest of the Labor party. In contrast, when questioned, Scott Morrison stayed very neutral, proceeding to directly state his support in the minimum wage being “independently assessed” by the FWC (Fair Work Commission). Nevertheless, as the election campaign continued in rebuttal to Labor’s pledge, the Liberal party took a very textbook economic stand. As the unemployment rate continues to decrease, supply will fall and wages (price) will increase. Furthermore, the Liberals began to question the consequences of directly raising wages, stating that Albanese shouldn’t be making these promises “without talking to [experts]” in the area. Labor’s advocacy for a rise of 5.1% in the minimum wage has caused great concern for employer groups nation-wide who also “caution” the automatic increase in wage to match inflation. On the 10th of May NAB released their annual business survey that showed that labour costs growth had hit 3% in quarterly terms. The chief executive of the CSBR Alexei Boyd reflected on similar data and warned that increasing the minimum wage by 5% will “break many small
