Brad Olsen was on the show late in the Business Hour yesterday arguing the Government had to hike the minimum wage by a full $1.50 yesterday.

Because it had to be in line with the annual inflation rate.

If you look at the minimum wage in the isolation of one year, yes that’s an easy trap to fall into.

But you have to look at the minimum wage over the duration of the last six years of this Government. 

It has gone from $15.75 to $22.70.

That’s a $7 increase in six years. That’s 44 percent. 

Hands up, who else got a 44 percent pay rise in the last six years?

A study by Motu Research a couple of years ago found most of the workers on the minimum wage are teenagers, who are more likely to live at home with their parents rather than be household breadwinners. 

So it’s hard to argue that those kids, who have already been given a hefty pay bump over the last few years actually need to be kept in line with inflation.

Because, arguably they’re already ahead of inflation.

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They now have more in the hand at the end of a 40 hour week than a first year teacher with a student loan.

Can you justify that? No.

So now, what we have is reportedly one of the highest minimum wage rates in the world in an economy that has among the lowest productivity in the developed world.

This doesn’t make sense.

It doesn’t make sense to keep bumping up the pay of teenagers so they’ve got heaps to blow on new sneakers.

While making it harder for their employers, who might be parents running a small business, to square the books.

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