Its a simple formula only some people don't want to talk about it.
The people are the economy and the only economy whether in Australia or China. If people don't spend and buy the big and little ticket items then the economy goes backwards.
It has always been this way: Higher wages means better standard of living, higher wages means more revenue for the government from income tax, company tax , GST and every sort of tax on the people.
Our economy is now going backwards and wages are seeing the slowest growth in history for Australia.
If you don't think this is correct then take a look at a low wage economies, say the Philippines or China or India.
Wages are increasing now in China and the standard of living is increasing. The Chinese middle class is booming.
Its no mystery of economic algos or any other strange formula and its not a matter of giving tax relief to the big global corporations.
It is simply the more money the people have the more money they spend, the more they spend the more companies make and the more the government gets in tax. Even if the people choose to pay debt that is still a company or corporation getting paid and paying tax.
Any other course of action on the people is a political and big business agenda or just plain stupid people, but I prefer to think of the political and big business agenda.
