Lazy cost cutting by business leaves everyone worse off

Updated April 23 2018 - 8:20pm, first published September 8 2014 - 3:00am

It seems that the federal government is still determined to reduce penalty rates of pay for Sundays and holidays. Why can't business understand that lowering wages reduces workers's capacity to consume? Money saved from reducing wages goes straight into short-term profits; there is little or no effect on employment. The demand for workers is a ''derived'' demand; it depends on the demand for the final product, and reducing wages has little or no effect.

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