Category Archives: Economy

Real wages are falling and cannot be the cause of inflation

By Joe Montero

Despite all the hype, and even a Reserve Bank forecast of a 3.5 percent rise next year, the pay packet of the average punter is not going up, and in real terms, it is going south. Even if the Reserve Banks prediction, which doubtful to start with,  it will still fall behind  rising inflation. This means it will cost more to maintain the same standards of living. Continue reading Real wages are falling and cannot be the cause of inflation

There are better ways to stop inflation than by hiking interest rates

Richard D Wolf, professor of economics emeritus at the University of Massachusetts, wrote the following. It was first published by the Pressenza International Press Agency (6 June 2022). Inflation is on the rise and hurting many. Although Wolf’s alternatives to fighting this threat are within the context of the United Sates, they have universal application, and can just as easily be applied to Australia. He says there are many alternatives. He mentions three, to conclude that the fundamental problem behind inflation is the working of the market and that this is under the control of a small group of owners of the economy. His ultimate answer is democratic control of the enterprisesA situation serious enough to seriously consider such alternatives may be the trajectory we are already on.

Continue reading There are better ways to stop inflation than by hiking interest rates

Australia’s inflation rate is rising and why this is happening?

By Joe Montero

Australia’s inflation rate is rising and set to rise further still. In the first three months of this year, it rose 5.1 percent, according to Jim Chalmers, the Treasurer of the newly elected Labor government. He has suggested that further interest rate rises are on the horizon. The Reserve Bank has not made back top back interest rises for 12 years. The last time was soon after the Global Financial Crisis. Something is in the air. Continue reading Australia’s inflation rate is rising and why this is happening?

Wages and social security justice should be at centre stage of election campaign

Contributed 

A few days into the election campaign and two big issues are already being ignored, the falling share of wages and the even worse opposition faced by those trying to live on social security payments. If campaigning had been about people, surely, what determines the standard of living of every adult and child in Australia would rate far greater importance? Continue reading Wages and social security justice should be at centre stage of election campaign

The budget should solve rising cost of living and not pork barrel for votes

By Jim Hayes

Hours before Treasurer Josh Frydenberg delivers this year’s budget, the big issue is the rising cost of living beginning to push down the standard of living for millions of Australians. Instead of addressing this, the Morrison government is set on  a $26 billion pork barrelling spree to shore up its fracturing political base in marginal seats. Continue reading The budget should solve rising cost of living and not pork barrel for votes