The big fear driving the RBA's decision to raise rates — even though they make Australians poorer

and just about every other Western nation, as China deluged the world with low-priced goods and companies began offshoring.US economic historian Adam Tooze says it's reasonable to ask whether we had inflation at all from the mid-1990s onwards.largely synchronous increase in the prices of goods and servicesSpace to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume.

It needs to be largely synchronous to qualify as inflation because otherwise the amount a dollar can buy isn't clearly changing — any such effect is overwhelmed by changes in theIt is only when prices start to move together, as they are now, that inflation gets normalised and becomes entrenched. Twenty years ago, in June 2002, by my count 20 of the 87 types of items that made up the consumer price index fell in price. Ten years ago,

Interest rates lagging behind CPI is what is making us all poorer. Raising interest rates only makes those with mortgages poorer. Not all Aussies. I have no mortgage.

Profits are soaring, wages are flat. That’s where the real problem is. Interest rate hikes don’t fix that

And Albo’s doing everything he can to push inflation even higher… huge 5.2% minimum wage increase, huge increase in funding for childcare, huge spending on renewables…

The RBA is the only institution attempting to curb demand whilst the govt (Fed & State) binge on more spending. They need to stop.

His just should resign

Dear oh dear...rate rises do not make Australians poorer. Australians are borrowing and spending what they can’t afford or pay back based on policy decisions by the Govt of the day. Martin is an economic clown. Dear oh dear...

No bigger money printer than Joe Biden.

And inflation doesn’t make Australians poorer?

Could be talking about Australia. 🤷🏻‍♀️

Their actions seem unlikely to contain inflation as consumer actions and worker pay are what is driving it. I’m not sure it has any mechanism to contain it.

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