Higher interest rates increase unemployment, thereby slowing the economy to prevent inflation. The trick is to not go so far as to cause a recession.
The federal government has left minimum wage decisions to the states. In Arizona, for example, it is about twice the federal rate, and in some cities even higher. If wages are too high, jobs move across the border, less than 200km south of the world-class rented warehouse. This problem obviously is not one shared by Australia. But it is one from which AZL will benefit when they send their Lordsburg production to Mexico for processing.
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