There are two, maybe three components to inflation. 1. Imported. Goods and services we buy from abroad, if their prices go up, we have inflation. We can't control it, probably it will sort itself out in time. Examples would include refined fuels, cars, electical goods etc. 2. Locally induced. estern Australia has the highest inflation in Australia. In part this is induced by the government building infrastructure auxh as MetroNET. If you want to install o upgraed electricity supplies in regional Wstern Australia, you need to pay more to get workers off the government's projects. How is increasing interest rates the best solution for either of these? Both are taking money from people's wallets, except for a select few. Increased interest rates punishes those alreay most badly punished. Perhaps increased taxation would thake it from those who are experiencing increased income.
Thx Matt, that was a great explainer. I'm not clever enough to understand the 'unemployment/employment/underemployment' spin, so a future explainer about it would be greatly appreciated; especially the 'one hour of work per week = employed'. Who makes this stuff up....and claim it as truth???. Ross
There are two, maybe three components to inflation.
1. Imported. Goods and services we buy from abroad, if their prices go up, we have inflation. We can't control it, probably it will sort itself out in time. Examples would include refined fuels, cars, electical goods etc.
2. Locally induced. estern Australia has the highest inflation in Australia. In part this is induced by the government building infrastructure auxh as MetroNET. If you want to install o upgraed electricity supplies in regional Wstern Australia, you need to pay more to get workers off the government's projects.
How is increasing interest rates the best solution for either of these? Both are taking money from people's wallets, except for a select few. Increased interest rates punishes those alreay most badly punished. Perhaps increased taxation would thake it from those who are experiencing increased income.
Thx Matt, that was a great explainer. I'm not clever enough to understand the 'unemployment/employment/underemployment' spin, so a future explainer about it would be greatly appreciated; especially the 'one hour of work per week = employed'. Who makes this stuff up....and claim it as truth???. Ross
Great video (maybe work on the audio mixing ;-) )
You'd imagine that we'd have better tools than the blunt "interest rate" lever by now