Analysis finds Australia’s inflation being driven by company profits, not wages

Post by DecoPerson » Sat, Feb 25, 2023, 12:44 AM UTC

brutusborn wrote: post #12

DecoPerson wrote: post #7

By its nature, the strong two-tier economy that exists within Australia is not captured within analyses like this. The “law abiding” tier that pays employees the award rate, pays something resembling proper GST & income tax, and doesn’t use Proprietary Limited tricks to escape long-term liabilities — the companies in that tier are suffering (especially the smaller ones). These companies are captured in these analyses…

Out of interest, what makes you frame the two-tier economy like this? I’d always thought of the two tiers as rent-seeking vs firms that must compete, not small legal business vs the rest. For example you mention some companies paying award rate, but isn’t that a requirement for all companies? Obviously resource companies can afford to pay well above board, but isn’t that simply a function of high returns from rent-se…

Post by chrishare » Sat, Feb 25, 2023, 12:45 AM UTC

Grimburger wrote: post #19

chrishare wrote: post #11

There are so many threads here. The reserve bank governor is deeply unpopular in the broader public because of 2021 comments he made about there being no interest rate increases needed until 2024 [1]. As mentioned in the article, many companies are posting record profits, including supermarkets [2] - leaving low and middle income people hurting, and working more hours or side jobs. Those same people also face an adve…

> The reserve bank governor is deeply unpopular Only 30% of people have mortgages, why should the remaining 70% care, many can even put money in savings accounts again after 15 years of them being basically worthless. He never said interest rates wouldn't rise either, he basically said they don't forecast the conditions that warrant a rise won't happen until then. Here's a pro-tip if you took on too much debt under t…

Post by Gigachad » Sat, Feb 25, 2023, 12:51 AM UTC

chrishare wrote: post #43

Grimburger wrote: post #19

Earlier quoted context omitted.

> The reserve bank governor is deeply unpopular Only 30% of people have mortgages, why should the remaining 70% care, many can even put money in savings accounts again after 15 years of them being basically worthless. He never said interest rates wouldn't rise either, he basically said they don't forecast the conditions that warrant a rise won't happen until then. Here's a pro-tip if you took on too much debt under t…

People who can't afford to buy get stuck with borrowing costs being passed on, anyway, and get trapped in rent spirals. I do agree that some of the criticism of Lowe is undeserved, though.

Post by gruez » Sat, Feb 25, 2023, 12:56 AM UTC

zmmmmm wrote: post #21

It's yet another example of the gap that always exists between economic theory and economic practice. In this case, what we have is that every player in the food chain has taken advantage of supply shortage to eke out additional margin along the way. And why not? Your products are in demand and there are buyers who are willing to pay more than the theoretical market price. The actual situation is that even if competi…

Post by gruez » Sat, Feb 25, 2023, 12:58 AM UTC

JumpCrisscross wrote: post #28

Grimburger wrote: post #22

Earlier quoted context omitted.

The Australia Institute is a thinktank, funded by the Greens. The conclusion is already foregone, they work backwards from there, it's like asking ASPI about defense spending.

> Australia Institute is a thinktank, funded by the Greens Source? If true, this doesn’t belong on HN.