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Following the release of the Government’s 2022-23 Federal Budget, there has been a lot of discussion about wages, the rising costs of living and difficulties for first home buyers trying to enter the property market.
The budget has been described as a “cash splash” with concerns being raised over whether it adequately addresses the issues for the long term.
Mark discussed the issue of wage stagnation saying, “Budgets are not designed to fix wages.” Budgets can increase the wellness of the economy in terms of welfare, but it can also help stimulate the economy, which if you stimulate the economy, businesses do better than businesses say to their employees, ‘listen, what we’ll do is we’ll give you some more wages.’”
So wage growth is not something that governments implement, unless it’s something like an award wage, like Labour announced that they’re going to do something for the aged care workers, but if it’s just say, someone like yourself working in private enterprise, not a government job, then it’s very difficult for government to do anything about your wage.
Listen in to the Today Show segment in the video above to learn about how the budget is addressing some key issues for everyday Australians.