This study focuses on the wages policy of the Whitlam Government and its socio-economic implications. Dr. McGavin's research leads him to conclude that the Whitlam Government's wages policy was counteractive to the Government's Stated "first priorty"--employment. The reality of government-induced redistribution of national income towards labor through wages is that this reduces employment. That this occurred as a result of the policies of a government with particular commitment to the disadvantaged highlights the importance of government policy being consistent, in both conception and implementation, with economic realities.