Helen Clark Foundation wants to ‘boost’ minimum wage

Helen Clark Foundation wants to ‘boost’ minimum wage

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The Helen Clark Foundation released a new report in partnership with the New Zealand Institute of Economic Research to call for a boost to improve inclusion and incentives investment in capital and skills which ‘leads’ to a greater ‘productivity’.

NZIER Deputy Chief Executive Todd Krieble says, “minimum wage reviews are too focused on the short-term. Backing people from the get-go with good wages is a form of ‘predistribution’ that means we can be less reliant on ‘tax and transfer’ to smooth out household incomes. This is important because inequality is a drag on growth and well-being.

“With border controls to prevent importing COVID-19, limiting the inflow of migrants, labour will become relatively scarce and costly. Capital has never been cheaper. This is an unheard-of combination of factors and should allow for a more equitable economic model. The recovery allows us to build a more inclusive economy that shares the gains.”

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The idea of minimum wage increases can cause more unemployment in advanced countries is not well supported by the evidence according to the Halen Clark Foundation — “In any case, it is a very short-term view if we want a fairer society,” says Todd Krieble.

The report reveals identifying and removing any barriers to skills development and learning for those who are stuck in a low-wage job, social support including childcare accessible transport, supporting entrepreneurship and engagement tools in government for efficiency.

“Our strong response thus far to Covid-19 and the attendant disruptions to the status quo has opened the door to a real, inclusive step-change in Aotearoa New Zealand. This paper aims to explore these possibilities and to generate further constructive discussion in this area,” says Todd Krieble.

Image: Wikicomms

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