Australia Has $16 Minimum Wage and is the Only Rich Country to Dodge the Global Recession


The Real News Network has the interesting video, Australia Has $16 Minimum Wage and is the Only Rich Country to Dodge the Global Recession.


As I was watching the video questions popped into my mind. What about the exchange rate between Australian dollars and U.S. dollars? What about the quote from a previous post on this blog, Correlation, tiresomely, once again refuses to imply causation?

Many of my questions and then some were eventually covered in the video. For instance, there is the following segment:

BABONES: The cost of living in Australia is in fact slightly higher than in the United States. And if you want to make an adjustment for that, the Australian fast food wage of $17.98 an hour probably comes down to around $12 an hour if you adjust for cost of living. On the other hand, if you adjust for the fact that that Australian $17.98, on top of that, Australian workers get four weeks’ annual vacation, retirement benefits, and full health insurance, then of course you would have to revise the figures upward. So there is some truth in the argument that the cost of living is higher in Australia. But on the other hand, you get more for your tax money and you get more for your wages in Australia as well. So I think the two either balance out or in fact probably workers are better off in Australia.


                                                                                

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