ACTU Right On The Problem; Wrong On The Solution

“The ACTU is right to say that the rising cost of living needs urgent policy attention. But the right way to reduce the cost of living is to cut red tape to increase competition in the energy, housing, education, and childcare sectors,” said Daniel Wild, research fellow with the free market think tank the Institute of Public Affairs.

Today the ACTU called for the introduction of a “living wage” to be set at 60 per cent of the median wage, notionally in response to cost of living pressures.

“The cause of the rising cost of living is government intervention through red tape which reduces supply and subsidies which increase demand.”

“Recent analysis by Deutsche Bank found that over the past decade private-sector prices have risen by just 10%. But sectors with heavy government influence, such as electricity, childcare, education, and housing, have risen by 60%.”

“It is a bit rich for the ACTU to cite rising electricity prices as a problem given the renewable energy subsidies they have supported are the cause of higher prices. Abolishing the Renewable Energy Target and withdrawing from the Paris Climate Agreement is the best way to get electricity prices down.”

“To put downward pressure on prices governments should cut red tape and reduces taxes.”

“Big businesses love regulation because it keeps competitors out of the market. Governments should end this crony capitalist cartel by cutting red tape to increase competition and choice.”

“The boosters of higher minimum wages or living wages do not admit to a limiting principle. This is dishonest. At what point will the unions admit that higher minimum wages put people out of work?” Said Mr Wild.

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