The recently released GDP figures for the December quarter put another nail in the coffin of Scott Morrison’s economic plan.
Despite a 16.5% rise in private non-financial corporations gross operating surplus (GOS), compensation of employees (COE) fell by 0.5% this quarter reflecting a decrease of 0.9% in average earnings per employee. This is the first fall in COE since September quarter 2012.
During 2016, full-time employment fell by 40,100 persons while the total Civilian Population aged 15 years and over increased by 290,300 persons. Trend employment to population ratio, which is a measure of how employed the population over 15 years is, decreased by 0.4 percentage points to 60.9 per cent.
So while businesses continue to make large profits, this has not resulted in more people being employed or any growth in real wages. And that is without the proposed cuts to penalty rates.
Time and again we have seen that cutting taxes does not result in jobs.
Getting rid of the proposed changes to the FBT on business vehicles did nothing to save the car industry.
Getting rid of the carbon and mining taxes did nothing to save manufacturing or attract greater investment.
As profits have risen, so has the number of people who are unemployed and underemployed.
Scott’s answer?
- Cut taxes to businesses – again.
- Cut regulations for businesses.
- Cut wages and freeze the superannuation guarantee.
- Cut government services.
- Borrow hundreds of billions to spend on war toys which increases GDP whilst contributing nothing to our standard of living.
The inevitable result of this approach is to accelerate the ever-widening inequality gap.
Will they ever be prepared to concede the blindingly obvious fact that demand is what fuels job growth and that lifting people out of poverty boosts productivity?
Not with this lot in charge.
