The government is trying to sell us the line that, if businesses make more profit, wages will go up.
This flies in the face of all evidence.
Corporate profits in Australia rose 6.0 per cent quarter-on-quarter to 82.63 AUD billion, an all-time high, in the March quarter of 2017 from a 20.1 per cent rise in Q4 2016.
Year-on-year, corporate profit surged 39.7 per cent.
Whilst corporate profits are skyrocketing, wages are experiencing record low growth.
Wage growth remained at record lows in the first quarter of this year, with workers receiving a pay rise of just 0.5 per cent. That keeps annual wage growth at just 1.9 per cent, the lowest on Bureau of Statistics figures that go back to the late 1990s.
The last budget stated:
Corporate profitability is expected to improve, consistent with recent higher commodity prices, lifting expected receipts from company tax from 2017-18. However, aggregate wages growth is expected to be weaker, resulting in downward revisions to receipts from personal income tax.
By their own admission, rising corporate profits have NOT resulted in higher wages and are not expected to.
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