Will the minimum wage rise destroy the economy? | Ask An Economist

There's been a lot of fear in the media recently about the increase to the minimum wage causing inflation. But is this really something worth being concerned about? Or are there other, much larger, contributors to inflation that aren't getting the same attention?

Executive Director Richard Denniss and Senior Economist Matt Grudnoff explain.

[JohnnyThousand]

Great video as ever =)
Also your editor is definitely on point =D

[whowhat]

Yet CEO, s can continue with their own generous pay hikes.

[juancarloslopez]

Minimum wage is a scam. Let’s go back to boomer days and pay living wages.

[attilajuhasz]

Again, outstanding 👏.

0:42 I think it may help public discourse on these sorts of discussions if we called that "lobby group" a union. Unions advocate for their collective members.
I say that because then the conservative and business type talking heads can't use the term "union" in a pejorative way when speaking of trade unions and their influence.
Cheers, gentlemen!

[Beaut_Beau]

It's not by chance that the things the media tells us will increase inflation are the things that would help anyone poor and struggling.
The top of the pile wants the bottom of the pile to stay in it's place.

[smitmi]

Would it be that the recipients of the Stage 3 tax cuts are more likely to hoard that money? Whereas minimum wage earners are more likely to spend all their money on essentials?

[dilligafwoftam]

Hasn't the Aust Chamber of Commerce and Industry group heard of the 'Trickle up effect' ... the one that works.🤓🇦🇺

[dodgygoose]

Can you guys do an analysis on how the poor are paying for Energy companies end of days retirement fund.
As the poor & renters can't install solar panels or batteries to get super cheap energy.

[richardstead]

these large companies need to understand to that unless you give their workers a decent wage they will find somewhere else to work

[creeib]

Mining is a high investment industry with comparatively low employment costs.

[millertas]

Don't trust these two, neither are wearing a tie, let alone a blue tie.

[ChrisLightbulb]

I agree on most points but it's a bit of a cop-out to target the Stage 3 Tax Cuts, as these mainly benefit average income earners (between $45, 000 and $200, 000), in the new 30% bracket. It's misleading to refer to people on these incomes as "rich" when a decent house costs about $2M in Sydney or Melbourne and $1M in Brisbane or Perth. With the current cost of living crisis and high rents (if you're lucky enough to get a rental) you're probably spending most of that on just living, let alone saving for a deposit, let alone ever actually paying your house off and saving for retirement, let alone travelling.

[kingjunkyview]

Apparently these two men are not small business owners

[FletchforFreedom]

It would be much better if they asked an economist that was even remotely competent!

Minimum wage laws are not inflationary and do not destroy the economy but they have absolutely *NEVER* "given more money" to workers or the poor - *EVER.* That position is an economically incompetent lie. The research is literally overwhelming (essentially unanimous if you look only at studies that achieve a real conclusion that hasn't been debunked) that the only result in disemployment most notably job loss for the most vulnerable of workers.

This guy isn't an economist; he;s a blithering idiot. If he were an economist, he would never suggest that placing restrictions on the private sector (price caps, "competition policy" and reigning in profits) are economically beneficial (they are not) let alone reign in inflation which is *LITERALLY IMPOSSIBLE." Inflation is an increase in the money supply (which can only be done by government and has nothing whatsoever to do with tax cuts) relative to the available supply of goods and services - period. No actual economist (as opposed to an ignorant hack who git an economics degree and says whatever bullshit his organization wants him to say) is so unimaginably stupid as to say anything else. He chuckles that ut;s "crazy talk" but the fact is that it's imbecilic, incompetent. economically illiterate ineptitude talk, No one taking such objectively asinine positions should ever be allowed to demean my profession by pretending he;s a member of it. What a complete ass!

The Australia Institute (for Mental Defectives) is nothing more than an anti-science anti-economics left-wing propaganda factory whose drivel should be recognized by everyone as the exact opposite of reality. If they advocate for something, you can be absolutely sure that it will benefit no one but themselves (via donations from the gullible). You'll get more reliable information on the economy and environment watching original episodes from the first year of "The Rocky and Bullwinkle Show".

[chrisburnett]

Love this guys. Why can’t we get this kind of commonsense commentary on the mainstream media?
You must get a commercial media network to stage a debate between yourselves and say the BCA over issues like those mentioned in this video. Our demographics have changed with Millennials now equal in size to the Boomer generation. We all know that Millennials are getting screwed, so I believe you’d have a very receptive audience.

[carbonite]

how did you become worth more today than yesterday to employ? will you work harder? longer? turn up? as an owner all good questions that we need answers for .as for the profit argument do you really think we are in business to make a loss? or who are you the employee to tell the people you work for how to spend their money . private business is not a democracy and thats where the argument ends.. dont like the money u make get anther job!