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Posts Tagged ‘minimum wage’

Government destroys 100,000 jobs while unions cheer

June 2, 2012 4 comments

The recent announcement that the legislated minimum wage will increase by 2.9% means that we can expect there to be nearly 100,000 fewer jobs in Australia. In response, commentators and unions have cheered and asked for more.

This is a great example of Bastiat’s old rule about what is seen and what is not seen. When a business downsizes and people lose their jobs, the impact is immediate and visible – resulting in news headlines and stern-sounding politicians. But when the government subtly destroys thousands of jobs slowly and indirectly, they are given a free pass.

Of course, that is cold comfort for the unemployed.

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