A Question for Russel Norman – NZ Greens & Living Wage

Russel has just tweeted:

NZ China FTA fully phased in 2012, removed 5% tariff on imported steel into NZ. Impacting on NZ steel industry
— Russel Norman (@RusselNorman) February 18, 2013

Presumably the Greens are therefore supportive of a tariff on steel imports. This is confusing, because as this link shows, the Greens are also one of New Zealand’s major proponents of the living wage, via a minimum wage rate.

Thus, as US economics professor Donald Boudreaux has asked of his leader this morning, a question that perhaps Russel might care to answer for me:

If a government policy that artificially raises the price of Chinese-made steel reduces the quantities of such steel that is bought, why does a government policy that artificially raises the price of low-skilled labour not reduce the quantities of such labour that are hired?

If Green policy has any sense to it, tell me the sense that solves this contradiction please. Or are you happy with, as economist Matt Nolan makes clear regarding an enforced living wage, a permanent underclass that can never be employed?