This essay examines the risks associated with the slow wage growth in the Australian economy. It begins by discussing the weak wage growth rate and its impact on the country's inflation rate, and then explores the potential consequences of this trend, including reduced aggregate demand, decreased foreign investment, and increased unemployment. The essay analyzes the government's concerns regarding wage stagnation and its efforts to stimulate wage growth, such as tax cuts and fiscal consolidation. It also delves into the importance of wage growth for generating demand, supporting government economic plans, and maintaining a healthy labor market. The essay concludes by emphasizing the need for proportionate wage growth to drive internal and external investment, and the overall prosperity of the Australian economy. The analysis is supported by referencing several academic sources and reports.