James Galbraith, son of US economist John Kenneth Galbraith, is a world expert on income inequality and growth, and has strongly challenged the conventional economic wisdom that blasting away employment and wage regulations produces more jobs, attacking the idea as "fundamentally, logically incoherent".
Professor Galbraith warned that deregulation of labour markets was "absolutely the low-road approach which is going to drive the country backwards".
"I don't know of any case where deregulation and increased inequality in pay structures was associated with solving the unemployment problem and I don't think it will work here," Professor Galbraith said after addressing the Economic Society of Australia's annual conference.
"The evidence is that unemployment is better in countries which regulated their labour markets than in countries which deregulated their labour markets."
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