About Quote by John Howard
“I have had the view that cutting wages is not the path to prosperity, and one of the great myths propagated about my attitude to industrial relations is that I believe in lower wages. I've never believed in lower wages. Never. Never believed in lower wages, I've never believed in lower wages as an economic instrument.”
About This Quote
Source Speech: Australian Federal Budget Address, 1996
The speaker rejects the idea that lowering wages leads to economic growth, emphasizing that wage cuts are not a tool for prosperity.
In simple terms: Lower wages do not create prosperity.
Key Takeaway
Avoid wage cuts as a policy.
Themes
economics
labor relations
policy
myths
prosperity
Mood
critical
analytical
Type
political
economic
policy
When to use this quote
- government budgeting
- business negotiations
- union discussions
- policy formulation
Key Concepts
Keynesian economics
labor market theory
political rhetoric
Questions to Reflect On
- What alternative policies could boost prosperity without cutting wages?
- How do wage perceptions affect industrial relations?
A Different Perspective
Wage reductions may be politically popular despite economic drawbacks.
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