Did Morrison & Co send your chance of getting a decent pay rise up in smoke?

“Brace yourselves Australia — everyday things are about to cost more, and your chance of a pay rise has gone up in smoke” [News Corp Journalist David Ross writing in news,com,au, 8 March 2019]

Well it had to happen. After five and a half years of an Abbott-Turnbull-Morrison Coalition Government the nation has reached what is known as a per capita recession.

This hasn’t occurred since the Howard Government’s last full year in power.

Almost sixty per cent of Australia’s Gross Domestic Product comes from consumer spending and five and a half years of deliberate wage suppression by both the federal government and the business sector means the majority of consumers have little to spend.

The economy has been markedly slowing under Scott Morrison’s economic policies, first as federal treasurer then as prime minister.

Annual growth has now fallen to just 2.3 per cent according to the Reserve Bank.

This slowing has a cascade effect.

All economists news.com.au spoke to suggested the per-capita recession would hamper wage growth and — combined with increasing costs of living — make things more expensive.

“It’s a feeling of lethargy in the economy rather than outright collapse, It makes it very hard for wages to pick up when the economy is depressed,” Mr Koukalas said.