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Fair minimum wage again - distinction from welfare

Comments on Michael Stutchbury ” Swan and Gillard lesson”, 9/07/2009, http://blogs.theaustralian.news.com.au/currentaccount/index.php/theaustralian/comments/swan_and_gillard_lesson/

Michael, while I argued against the freeze of federal minimum wage yesterday, you have a point in arguing that the Australian minimum wage is high by international standards and relative to average wages, if they are true.

There should be a balance between the minimum wage and average wage. If it is relatively too high in Australia compared to international standards, then there is a case for a slower increase in the minimum wage.

At the same time, there should be a clear distinction between paid work and pure welfare be sufficient incentives for people to work as compared to receiving welfare.

A culture of hard working if one can is invaluable and should be encouraged. Paid workers should be better off than welfare dependents.

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