In the run-up to the annual minimum wage announcement, i believe what is needed is a substantial increase to help boost spending and guard against deflation
I dont think a 25 cent or 50 cent increase will ‘cut the mustard’ for working people and their families and nor will it help lift the economy
New Zealand is in a unique situation where we can substantially increase the minimum wage to both boost spending in the economy (as the Reserve Bank has called for) and reduce inequality
A minimum wage should be at least two-thirds of the average wage, or $19.46.
The government can implement this in three stages: $16.50 this year; $18.46 in 2017; and up to the anticipated level of the average wage in 2018 of $20.65
Over the last year the spectre of deflation has continued to grow. Governments and Reserve Banks both here and across the world are searching for ways to restart their economies and lift inflation into their target bands. I believe a significant increase to the minimum wage ticks all boxes
When inflation is at or near the top of the band the government and the Reserve Bank have called for wage restraint because they say it’s inflationary. With inflation now at 0.1% and enforced restraint on low wages over the last decade, the Government has an opportunity to ‘‘revive two birds with one policy’’ by increasing the minimum wage by at least $1.75 to $16.50 per hour on 1 April this year. I await the Governments announcement with huge expectation along with equal trepidation.
Cattle in creeks and waterways is becoming a defining issue.