[Australia] The effect of Biden’s doubled US minimum wage on established standards

[Australia] The effect of Biden’s doubled US minimum wage on established standards
28 Jan 2021

President Joe Biden’s $1.9 trillion 'American Rescue Plan' proposes a doubling of the US federal minimum wage to $15 an hour, The Guardian looks at the move from an Australian perspective.

President Biden spoke plainly to emphasise his point about the need for the new minimum wage in a 14 January speech, “No one working 40 hours a week should live below the poverty line,” he said. “If you work for less than $15 an hour and work 40 hours a week, you’re living in poverty.”

By contrast, Australians reportedly have great confidence in their framework. A concept ingrained within their basic industrial contract. However, though wage-earning Australians may look negatively at an American framework that currently lets 7 million people both hold jobs and live in poverty, local agitation continues to push for the Americanisation of Australia’s established standards.

Removing impediments to collective bargaining and unionisation is something that enables workers - across all industries - to negotiate an appropriate pay level.

The Guardian argues that Australians have enjoyed the comparative benefits of these assumptions for decades, and in that time have been spared the changing fortunes of America’s boom-bust economic cycles.

After seven years of Liberal government policy corroding standards, Australia is experiencing ahistorical wage stagnation. The US minimum wage will suddenly leapfrog Australia’s - in both real dollar terms and purchasing power - if Biden’s proposals pass. 

In its opinion piece, The Guardian examines where a doubled US minimum wage would leave Australia and what lessons may be taken from the American example. (Links via original reporting)

 

President Joe Biden’s $1.9 trillion 'American Rescue Plan' proposes a doubling of the US federal minimum wage to $15 an hour, The Guardian looks at the move from an Australian perspective.

President Biden spoke plainly to emphasise his point about the need for the new minimum wage in a 14 January speech, “No one working 40 hours a week should live below the poverty line,” he said. “If you work for less than $15 an hour and work 40 hours a week, you’re living in poverty.”

By contrast, Australians reportedly have great confidence in their framework. A concept ingrained within their basic industrial contract. However, though wage-earning Australians may look negatively at an American framework that currently lets 7 million people both hold jobs and live in poverty, local agitation continues to push for the Americanisation of Australia’s established standards.

Removing impediments to collective bargaining and unionisation is something that enables workers - across all industries - to negotiate an appropriate pay level.

The Guardian argues that Australians have enjoyed the comparative benefits of these assumptions for decades, and in that time have been spared the changing fortunes of America’s boom-bust economic cycles.

After seven years of Liberal government policy corroding standards, Australia is experiencing ahistorical wage stagnation. The US minimum wage will suddenly leapfrog Australia’s - in both real dollar terms and purchasing power - if Biden’s proposals pass. 

In its opinion piece, The Guardian examines where a doubled US minimum wage would leave Australia and what lessons may be taken from the American example. (Links via original reporting)

 

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