Aussie Macro Moments: The Carbon Tax is going to cut your wage by 5-10%...

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Sunday, July 10, 2011

The Carbon Tax is going to cut your wage by 5-10%...

I don't have a firm view on this issue. However, my mate the interest rate strategist--aka Ricardian Ambivalence--does. And he has highlighted this Treasury chart showing the impact of different Carbon Taxes on real wages. It looks like we are set to endure a 5-10% reduction in wages as a result of this policy. Clearly, there are many others who feel that it possesses strongly redeeming qualities. I have deliberately not entered the debate, since I don't have any expertise in climate change. But, my mate the high-profile interest rate strategist would prefer we simply saved. You can read his always controversial views here.

Hey there...

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