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The third way: why business and unions are both wrong : Comments
By Bryan Kavanagh, published 24/8/2011If unions have their way with pay rises, it will be inflationary and put further pressures on business to reduce staffing levels. If business holds its line on no further pay rises, from whence shall effective demand arise?
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As to super'. I think it suits those in stable employment who can accumulate a buffer and who don't need to draw on funds in instability and emergency - ie. the exact kind of jobs that were going south when super' was being introduced. It was outmoded before it was introduced.
And if it gets in the way of housing affordability then it is a major problem - one reason people don't need the same income in retirement as when they are in the workforce is because they use their time in the workforce to buy a house. It is about maintenance of lifestyle which is not the same as maintenance of income.