Is debt the real reason wages are not rising?

5 min readSep 11, 2019

When demand outstrips supply, prices are supposed to go up, so how come New Zealand has a tight labour market and falling wage growth? Low wage growth has become a headache for many industrialised countries and the reasons behind it are hotly debated.

The answer may lie in the growing burden of household debt, particularly housing costs. When an increasing portion of a household’s…


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