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Michael Stutchbury

Bipartisan illusion on pay rises

It’s the magic pudding pitch. Even Peter Dutton is joining Labor in pretending that real wages can increase while productivity is shrinking.

The Labor-Liberal joint ticket on jacking up the nation’s award wage floor despite the economy’s falling productivity confirms the magic pudding illusion of Australian politics.

On Tuesday, Workplace Minister Murray Watt’s regurgitation of Labor talking points denied the laws of economics by suggesting that workers can enjoy higher real wages even though productivity remains stuck at 2016 levels.

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Michael Stutchbury is editor-at-large. He is in his fourth decade of writing for and editing national newspapers. After nearly six years as editor of The Australian, he returned to the Financial Review as editor-in-chief (2011-2024). Email Michael at mstutchbury@afr.com

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    Original URL: https://www.afr.com/politics/federal/bipartisan-inflation-illusion-on-no-productivity-pay-rises-20250402-p5loja