Wages are not high enough | Josie Pagani



Wages are not high enough

Josie's opinion column in the New Zealand Herald critiqued arguments against Fair Pay Agreements.

The best way to increase wages is to ... increase wages. The price of labour isn't the same as the price of a tomato. If tomatoes cost more, I buy less of them. If wages go up, businesses invest in higher productivity and the economy as a whole earns more. The question is who gets the benefit of those productivity gains. Whatever the merits of Fair Pay Agreements, if you think they are bad because wages will go up, then you have to believe that we are worse off if we are paid more and better off if we are paid less.

A copy of here column is here.