June GDP Numbers Confirm Lopsided Economy
This week the ABS released new GDP data, covering the June quarter, which confirm the continuing structural shift away labour toward capital in the distribution of income.
We have prepared a short briefing note, contrasting the strong growth in corporate profits over the past year with the stagnation of labour incomes.
Workers simply do not have the bargaining power to demand and win wage increases that reflect steady productivity growth. This reflects the erosion of the structures and regulations that once supported wages (including minimum wages, awards, and collective bargaining). Those who advise workers to simply be patient, wage gains will come as a result of normal supply-and-demand forces, are ignoring this fundamental structural change in Australia’s economy.