Living wage already up 40c

The ‘living wage’ has increased by 40 cents in just a few months:

The new figure for a living wage was also up from last year, with campaigners saying it now costs $18.80 an hour to feed two adults and two children in New Zealand.

The wage is based on a family with two children, where one adult is working full-time and the other half-time at the same wage.

The calculations come from the Anglican Family Centre research unit and are up 2.1 percent from last year’s estimate of $18.40 an hour. . .

The figures come from surveyed spending of the poorest half of Kiwi families with two adults and two children. Costs are figured on average New Zealand-wide rents for the cheapest quarter of three-bedroom houses and food costs for foods that meet Otago University’s nutritionists’ “basic” diet of nutritious food.

But the ‘living wage’ doesn’t just cover necessities like food and rent. The calculation was based on all sorts of other things the campaigners deem necessary  for a family with two children to participate in society, including overseas trips which most of us would regard as luxuries rather than necessities.
There is a need for an examination of why New Zealand wages aren’t higher and so many families have their incomes topped up by taxpayers.
But the ‘living wage’ which takes no account of the value of the work done is not the answer to that problem and would cost jobs:

. . . Labour Minister Simon Bridges said the figure seemed to be “much more what they feel rather than what good evidence suggests is right”.

He said raising the legal minimum wage to the original figure of $18.40 would cost employers $2.3 billion a year and wipe out 24,000 jobs. . .

A wage of $18.80 would be around $40,000 a year but a family with two children would get Working for Families on top of that.
Increasing the minimum wage to that figure would save taxpayers’ money but would not be affordable for all businesses, and would cover young, single and part-time workers without families.
If the figure has gone up by 40 cents in a few months,  it won’t stop at $18.80 and Labour has already raised the bar.
The party’s baby bribe would go to people earning up to $150,000 which is about $72 an hour.

If they think you need an extra $60 when you have a new baby who costs very little, how long before they think you need at least that when the baby is older?

By Labour’s reckoning the living wage isn’t around $40,000 but $150,00 and climbing.

One Response to Living wage already up 40c

  1. Andrei says:

    This is all beyond satire

    Poverty isn’t a matter of dollars and cannot be solved by printing money which effectively what raising the minimum wage would end up being since the new minimum wage would end up having the same real purchasing power as the old one in the fullness of time.

    Poverty is of the spirit and what I wouldn’t give to see politicians who recognize this and seek to address it

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