The AGE argues that increasing the spending power of the poorest is one of the most effective ways to stimulate the economy to the benefit of all.
The AGE says that the low growth of wages is not just making life difficult for the poorest in our community but is shackling the entire economy because people have insufficient cash and confidence.
The Australian Council of Trade Unions argues that minimum wage earners should get an extra $80 per week to meet the rising cost of living.
ACTU secretary Sally McManus said that the living wage should be measured as 60 per cent of the median wage as recognised by the global OECD. The AGE says it is an argument consistent with recent recommendations by Australia's most conservative economic and policy institution, the Reserve Bank.
The paper pointedly says that increasing the spending power of the poorest is one of the most effective ways to stimulate the economy, because people on lower incomes spend virtually all the increase – which has a self-sustaining multiplier effect on sales, profits and employment.
