Re: Election 2022 (Poll added)
Reply #270 –
It is interesting, you'll find those wealthy enough or earning enough to save or invest will advocate that wages growth is inflationary, that is because they speak from a perspective of accumulating cash.
Many academics will tell you wage growth for low earners isn't inflationary when the bulk of the people getting the rise are living hand to mouth, that is circular cash and it cannot possible contribute to inflation, because it goes straight back to those who give it out. It's just a shift in the location and timing of the funds.
Ironically, if you want people to be self-funded retirees you need some level of interest rates higher than the current rates, so that investments and superannuation see growth. The RBA is charged with managing that, but I have to wonder if they genuinely think a wage rise to the bottom 2% is inflationary if they are fit for purpose, because that seems more political than economically rational.
So for me opposing a wage rise for low earners seems counter-productive, and hypocritical, a bit like accusing them of stealing the icing off the cake when in fact they are only being thrown a few crumbs.
PS; It's interesting how quickly Albanese has hit the ground running, it looks like if nothing else he won't be lacking in effort!