Media Release

4 September 2014

ACT Leader Dr Jamie Whyte

The Greens minimum wage will cause mass unemployment

"The evidence from economics is that a small change in the hourly rate has a big effect on employers - it is common sense. If you can get your lawns mowed for $10 you will hire but at $20 you do it yourself." said Jamie Whyte

"Anyone who has been to Europe can see the mass unemployment that Europe's high minimum wages cause young people. Up to 30 percent of graduates cannot find jobs where they can get a chance to prove themselves."

"We have all seen that in times of recession there is mass unemployment. The reason for that is wages, unlike most things, never go down. In a recession an employer would keep more people employed if wages could decrease. Higher minimum wages mean more employers will decrease or reverse their plans to hire."

"Minimum wages are a form of price control. The reason New Zealand does not have price control on food, housing and fuel is because price controls lead to shortages. The suppliers will just not provide enough to meet the market demand. Price control wages, and there will not be enough jobs created to meet the demand for jobs."

"If the Greens proposal is adopted it will cause mass unemployment among those who most need a job. For example, part time work that students rely on will just disappear."

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