Malcolm Turnbull and Magic pudding economics

Prime Minister Malcolm Turnbull has suggested it is inevitable Sunday penalty rates will be reduced but said there would need to be widespread acceptance from workers that they would not be left worse off.

The Prime Minister didn’t go into detail about how you could cut people’s wages and leave them no worse off. If you cut people’s wages, they are worse off.

The only way of compensating people for this kind of wage cut is through tax cuts but it is very difficult to have tax cuts that only target those who are on Sunday penalty rates.

The idea has had support from Resources Minister Josh Frydenberg  and Employment Minister Michaelia Cash.

Malcolm Turnbull, Resources, Minister Josh Frydenberg Employment Minister Michaelia Cash  and the magic pudding
Malcolm Turnbull, Resources, Minister Josh Frydenberg Employment Minister Michaelia Cash and the magic pudding

Treasurer Scott Morrison has a different view and sees low wage growth as a major problem in the Australian economy.

it would appear that some senior members of the terrible government have not been talking to each other or even reading the same bedtime stories.

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