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- Dec 30, 2010
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- 12,730
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- 113
Here, you have to understand why the government is doing this. Our government does not want to be a welfare government. They want to be a government that operates on economic principles. So, they do not want to be seen as increasing the incomes of people because it is “the right thing to do”. They know it is the right thing to do, but they won’t just to do it which they think will make it look like they have become weaker. So, they conjure up the idea that it’s all because of productivity – once productivity increases, wages will increase. The maths say otherwise, but it doesn’t matter.
They need to tie their policies to economic ideals and we need to increase wages, so this is a win-win ideology.
Similarly, they had not want to put in a minimum wage law, because another principle that the government operates on is that it doesn’t want to tie itself unnecessarily to laws that cannot be reversible – and a minimum wage law is one that they are uncomfortable with, in the current uncertain economic climate. So, they purport the idea of negotiating with companies to push the wages of low income earners organically. There are mechanisms behind how the government can intervene with wage changes. So, it cannot be as simple as companies suddenly agreeing to respecting people’s rights.
But does it matter? Yes and no. But, at this point, no. The government wants to save face and want to look strong, and economically-focused. We will give them that. As long as you treat people fairly – doesn’t matter how you do it.
*****
Afterthought: I had a further think through on the government’s rationale for laying low on championing any news on wage increase:
1.Currently, there is a huge pool of low wage earners who earn below $1,000. The strategy of increasing the wages of those earning less than $1,000 is to life this group into the next income bracket. This is so that the government can make the statistics look beautiful – we do not have a huge proportion of low wage earners, if we are able to push them into the next bracket. So, the government has done its calculations and know it does actually have the money to provide for this little increment, just so that they do not look like they treat low wage earners in a mean way.
- http://thehearttruths.com/2012/10/19/hooray-wages-increase-for-low-wage-workers/
They need to tie their policies to economic ideals and we need to increase wages, so this is a win-win ideology.
Similarly, they had not want to put in a minimum wage law, because another principle that the government operates on is that it doesn’t want to tie itself unnecessarily to laws that cannot be reversible – and a minimum wage law is one that they are uncomfortable with, in the current uncertain economic climate. So, they purport the idea of negotiating with companies to push the wages of low income earners organically. There are mechanisms behind how the government can intervene with wage changes. So, it cannot be as simple as companies suddenly agreeing to respecting people’s rights.
But does it matter? Yes and no. But, at this point, no. The government wants to save face and want to look strong, and economically-focused. We will give them that. As long as you treat people fairly – doesn’t matter how you do it.
*****
Afterthought: I had a further think through on the government’s rationale for laying low on championing any news on wage increase:
1.Currently, there is a huge pool of low wage earners who earn below $1,000. The strategy of increasing the wages of those earning less than $1,000 is to life this group into the next income bracket. This is so that the government can make the statistics look beautiful – we do not have a huge proportion of low wage earners, if we are able to push them into the next bracket. So, the government has done its calculations and know it does actually have the money to provide for this little increment, just so that they do not look like they treat low wage earners in a mean way.
- http://thehearttruths.com/2012/10/19/hooray-wages-increase-for-low-wage-workers/
