03 January 2010

All the capitalists seem to very quiet about this one

I read an article today which says that Colorado's minimum wage will drop 3c/hour to the US Federal minimum wage, which is currently $7.25/hour. The US unemployment rate is just below 10% currently (Nov 2009).

Meanwhile in Australia we have the award safety net in many industries. But even if you're not covered by an award, you're at least paid the minimum wage, which is currently $14.31/hour, nearly double the US rate (since our dollar is creeping up to parity with the greenback). The Australian unemployment rate is 5.7% (Nov 2009), nearly half the US rate.

Every year the employer's bleat about how raising the minimum wage will put people out of work. It's a capitalist mantra that a low minimum wage means more jobs. Yet the US has ridiculously high unemployment with its very low minimum wage. And Australia has a relatively low rate of unemployment with a good minimum wage.

Makes me think, the rich end of town is full of shit isn't it?

1 comment:

Liam said...

Great blog. Thanks