The effect of an increase in wages on the Australian Economy?

Question

How does an increase in the wage price index realte to the Australian economy? and how is the economy affected?

Answer 1

well that could take hours to answer completely.

Since Australia is a considerably wealthy nation with a good economy as compared to other countries, Im assuming that a wage increase would have a positive influence on the economy.  They have a progressive economy, like the US (in past years) and in order to keep up with inflation the best step would be to increase wages.

Answer 2

In all the cases, if we increased the salaries the local economy fall in inflation. The merchants are waiting for an increase from wages, in order to activate an increase from the prices to general level. To the end the economy is harmed for the inflation, and everything returns to the first state, where all are in the same monetary level.

The better strategy is try to get a descent in level of the prices, or at least stabilize them, when what we want is to improve the level of life of the citizens in a specific economy.