Cannondale closes down US Factory

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biker jk
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Re: Cannondale closes down US Factory

Postby biker jk » Wed Feb 05, 2014 4:10 pm

Ok, let's take your points in turn.

1) You claimed Rinehart has the ear of the LNP Federal government but we learn that she has donated to the ALP. It was a tenuous argument at best on two counts. First, Rinehart never said that the minimum wage in Australia should be cut (it was implied by the left-wing journalist). She stated the obvious that labour costs in Australia are too high. Second, the LNP has no policy to lower the minimum wage (which is a shame because it's preferable not to price low skilled workers out of a job. The welfare system can then top up household income. A low paid job is better than unemployment).

2) Manufacturing employment was essentially unchanged during the LNP Federal government of 1996-2007. Under the workers' friend ALP, 125,000 manufacturing jobs were lost. I note the ABC and Fairfax were silent on this decimation of manufacturing jobs in Australia but now that the LNP is in power and the hand outs to industry are ending they have developed concern for these workers. :roll:

3) The workers at Holden and SPC are paid well above award or minimum wages. It's not just about the average wage in these industries but the average total labour cost per hour. Not only are these workers paid well above the average wage but they have generous paid leave, RDOs, generous shift penalties, etc. It's not sustainable without the support of the taxpayer through industry welfare.

4) You're moving to macroeconomics so you clearly have lost the microeconomics argument. Yes, it makes perfect sense to push the wages of the unskilled well above their marginal product so that that lose their jobs. What's the marginal propensity to consumer from zero income?

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greyhoundtom
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Re: Cannondale closes down US Factory

Postby greyhoundtom » Wed Feb 05, 2014 6:20 pm

I’m not sure what happened ........... I was under the distinct impression that Cannondale closed their factory in the United States .......... so what the :!: does that have to do with the cost of wages in Australia? :roll:

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AUbicycles
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Re: Cannondale closes down US Factory

Postby AUbicycles » Wed Feb 05, 2014 7:15 pm

Your right Greyhoundtom. I might set up a private thread for those interested in Political discussions with no direct link to cycling

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Clownshoes
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Re: Cannondale closes down US Factory

Postby Clownshoes » Wed Feb 05, 2014 7:21 pm

mikgit wrote:it's all the X440's fault... if only they hadn't made it...


This, absolutely this.

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rkelsen
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Re: Cannondale closes down US Factory

Postby rkelsen » Thu Feb 06, 2014 8:53 am

biker jk wrote:1) You claimed Rinehart has the ear of the LNP Federal government

Sorry, but you're living in denial if you don't believe this. They are close enough to get involved in her family matters. Does that not set alarm bells ringing in your head? Do politicians raise your kids?
biker jk wrote:First, Rinehart never said that the minimum wage in Australia should be cut (it was implied by the left-wing journalist). She stated the obvious that labour costs in Australia are too high.

Semantics. Did you watch the video she made?
biker jk wrote:Second, the LNP has no policy to lower the minimum wage

You say that with such authority. Are you a member? If not, how do you know? You seem to be basing your statement on the assumption that politicians are principled, which is a big mistake on your part.
biker jk wrote:(which is a shame because it's preferable not to price low skilled workers out of a job. The welfare system can then top up household income. A low paid job is better than unemployment).

:shock: What?
biker jk wrote:Manufacturing employment was essentially unchanged during the LNP Federal government of 1996-2007.

Whatever guy. The simple fact is that manufacturing here has been dying a long slow death for at least 20 years. The rate of decay may have increased over the past 5 or 6 years, but you can't say with any certainty that the result would have been different under another government... especially given that there was a big fat GFC and very poor global economic conditions since.
biker jk wrote:Not only are these workers paid well above the average wage but they have generous paid leave, RDOs, generous shift penalties, etc. It's not sustainable without the support of the taxpayer through industry welfare.

Yeah. How dare those bums demand penalty rates for working unnatural hours.
biker jk wrote:You're moving to macroeconomics so you clearly have lost the microeconomics argument.

I apologise. It has been 20 years since I studied either.
biker jk wrote:Yes, it makes perfect sense to push the wages of the unskilled well above their marginal product so that that lose their jobs. What's the marginal propensity to consumer from zero income?

That's a bit of a hyperbolic reaction to my statement, don't you think?

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rkelsen
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Re: Cannondale closes down US Factory

Postby rkelsen » Thu Feb 06, 2014 9:01 am

AUbicycles wrote:Your right Greyhoundtom. I might set up a private thread for those interested in Political discussions with no direct link to cycling

Oops. Sorry. :oops:

I'll try to refrain from posting anything further. :(

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clackers
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Re: Cannondale closes down US Factory

Postby clackers » Thu Feb 06, 2014 11:12 am

ldrcycles wrote:
I think statistically the "average" wage is somewhere around there, but just think how skewed that is by the wages of bank CEOs, Gina Rinehart etc.


Nuh, they calculate this using the median rather than the mean for exactly that reason.

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simonn
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Re: Cannondale closes down US Factory

Postby simonn » Thu Feb 06, 2014 2:21 pm

clackers wrote:
ldrcycles wrote:
I think statistically the "average" wage is somewhere around there, but just think how skewed that is by the wages of bank CEOs, Gina Rinehart etc.


Nuh, they calculate this using the median rather than the mean for exactly that reason.


Actually, that figure looks like the mean:
What is the typical Australian worker’s wages?

Among full-time workers, the average wage is $72 800 per year. But remember – the average (ie. the mean) gives a misleading impression about what the typical worker earns. It is pushed upwards by the large salaries of a small number of very high income earners.

The median gives a more accurate sense of the typical worker’s wages. If you earn the median salary, your wage is in the middle of the distribution – it’s higher than 50% of workers and lower than the other 50%. Among full-time workers, the median was $57 400 in August 2011, which is the most recent figure.


http://mattcowgill.wordpress.com/2013/0 ... e-in-2013/

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Re: Cannondale closes down US Factory

Postby AUbicycles » Fri Feb 07, 2014 10:06 pm

The votes are rolling in for that private thread. Thanks rkelsen :)

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