The Reserve Bank's new boss has not backed away from tough talk, saying the bank must use its "blunt" tool of interest rates to hammer out inflation for the collective welfare of Australians.
Raising rates is a legit proven way to combat inflation but there have to be more nuanced approaches available. Economic thought seems to have stagnated more than wages. Wage earners with dependents have been going backwards in a big way.
If they want to take the steam out of spending by the investment income class then perhaps they should be targeted specifically instead of making it harder for working families to feed and cloth their kids. We could look at increasing taxes on the wealthy, reducing tax evasion and negative gearing. But no, lets hit the people who will hurt the most who have barely any discretionary spending to influence. The beatings will continue until morale improves.
Raising rates is a legit proven way to combat inflation but there have to be more nuanced approaches available. Economic thought seems to have stagnated more than wages. Wage earners with dependents have been going backwards in a big way.
If they want to take the steam out of spending by the investment income class then perhaps they should be targeted specifically instead of making it harder for working families to feed and cloth their kids. We could look at increasing taxes on the wealthy, reducing tax evasion and negative gearing. But no, lets hit the people who will hurt the most who have barely any discretionary spending to influence. The beatings will continue until morale improves.