The best way to increase wages is to invest in education and skills.
- Visiting Fellow, College of Business & Economics, Australian National University
Australia will be probably need to raise an extra 4% of GDP in tax to fund the services it needs. The first step is a inquiry into what’s needed.
The Coalition’s Lower Tax Guarantee is pointless without an explanation of how it will also close the deficit and fund services.
Without extra measures, aiming for wage growth in the aggregate will leave many Australians behind.
The Australian government’s spending is Keynesian, but its approach to wage growth is not.
The government has done a good job so far, but it will have to direct future support to the Australians most likely to spend.
Treasury’s inability to forecast wage growth suggests it doesn’t understand what cases it and why we need it.
More of us are in work than ever before, but we are more cautious than before, less likely to ask for more pay or change jobs.
Governments can’t undo the technological changes behind frozen wages and rising inequality. The best policy is to invest in education and training to give workers skills of value in the new economy.
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