Once again, I find myself completely agreeing with the comments of Judith Sloan, Contributing Economics Editor at “The Australian”, Judith Sloan
In her recent article in “The Australian”, she reminds us of Bill Shorten’s former reputation when he headed up the AWU and negotiated with big business. Even if it meant the workers are ‘dudded’, he would be able to explain the importance of and need for businesses making a profit. He wasn’t alone with this ‘charade’ other unions have ‘done deals’ with big business. But rarely have they felt the need to do any deals with small business. Not much in it for them.
Ms Sloan goes on to point out:
“Now that Shorten is the prime minister in waiting, this acknowledgment of the need for businesses to be profitable to underpin improvements in the wages and conditions of the employed workforce has been largely forgotten”
She is referring to the impact of Labor’s policy proposals on the financial viability of small business – YES just dwell on that for a moment. The financial viability of a small business!
“The combined assault of Labor’s policy proposals on the financial viability of small business — think: the living wage, the reversion to previous penalty rates, the changes to the taxation of trusts — will have profound implications for business.”
Financial viability – wow she is right on the money here, small business has very little wriggle-room when they are being challenged by rising wages that have no correlation to rising business opportunities.
Unsure what she means by “profound implications”? Well, I think If you are a small business owner struggling to keep your business alive, struggling to attract enough business to keep employing your workers OR if you are one of these ‘at-risk’ small business employees you will know exactly what the profound implications are.
But nothing to worry about here. Cited in the same “The Australian” article, assistant Treasury spokesman Andrew Leigh tells us that higher wages will help small businesses, including retailers, because
“my spending is your income and your spending is my income”.
I am sure that little gem will put your mind at ease in the event of a Labor win next week?
See what I mean, Pollies just don’t have a clue. On the other-hand, our non-politician Ms Sloan gets it just right, basic economics:
“Unless wages are equivalent to the increase in revenue associated with employing that last worker, then higher wages simply will lead to job losses or fewer hours of work.”
She goes on to say:
“The small business community has much to be alarmed about should Labor win the election. The hope is that Labor will see that hurting businesses is essentially counter-productive and will modify its proposals. But I won’t be holding my breath.”
And neither will I!
Small Business simply can’t afford Labor’s policies.