These guys are a dumb as doggy doo . They get paid big bucks for their wisdom but it's MIA. It's hard to believe they can't come up with a more nuanced solution that keeps people employed and in their own homes. Michele Bullock is a (fkking) idiot (and most likely bought by the LNP)
The RBA is deliberately choosing to stick to a very traditional formula - to the point of inflicting even more pain - but only on a certain cohort - not the better off they're doing very nicely thank you...
? their objective 6% unemployed?
I was unemployed 6times in my working life, its the absolute pits. You have the nightmare of looking 4work, then there's lose of saving that you never get back-these days that would include super.
So basically they want a heap of ppl in poverty.I see that as immoral
It's all they understand. Ring the bells, burn the incense:
- All inflation is demand pull.
- Inflation can only be fought with monetary policy.
- You are all nails.
- We. Are. The. Hammer.
Don't forget all the OS uni students riding bicycles delivering meals, while hot spotting beds, ten to a room. Who needs servants when there are people willing to risk their live ensuring we get our Uber Eats or Menulog meal hot & tasty.
I’ve believed this for months now, as it makes far for sense than anything they’re saying or doing, but this RBA Board are waiting until after the Election to drop Interest Rates.
They kinda are though...it's just a shitty way to do it.
If you make people unemployed you resolve the supply side issues by decreasing demand.
The balancing act is to avoid a recession
They have actually Stated: Employment is way too High & Spending is still too High. I'm sure no economics expert, yet Unable to Comprehend how More Unemployed Australians unable to feed themselves & No one able to spend on goods in local businesses is a good thing for the country?
Very Odd System🤦
Unemployed people aren't criminals. Mostly they just suffer abject poverty, and lose their homes, and often suffer from depression, anxiety, etc. Demonising them as criminals just makes their lives harder. This country is the worst for treating unemployed like shit.
When all you've got is a people smashing hammer, you gotta smash people.
The whole banking system is a parasite based on spending future income. Taking even more is the only way to pay for assets, derivatives and other "paid by the future" riches...yep, even homes!
Future is here now. Who pays?
That’s 100% their goal. They’ve said before that productivity needs to rise, and in their bizarre world, productivity as a ratio will rise if more people are out of work. Failing to see that productivity has been falling for a long time due to lack of investment
The RBA’s statement confirms they want ‘other’ people to lose their jobs to curb inflation—ordinary workers, not those in positions of influence or power. Imagine proposing RBA board members’ families lose their jobs to stabilize prices.
The Treasurer will soon be able to appoint members to the new interest rate-setting board. This is a chance to bring in leaders like Bill Mitchell, Steve Keen, and Steven Hail, economists with bold ideas focused on equity, full employment, and sustainability. @williammitchell.bsky.social
I move that all RBA board members should have to do a form of professional development where they try to survive on the jobseeker rate for a period of time.
It sounds absurd because the entire theory—sacrificing others’ livelihoods for ‘economic stability’—is absurd. A just economy doesn’t rely on people suffering for others’ prosperity; it ensures shared progress for all.
Greg, perhaps you could explain how more unemployment is required but the only leaver being used is the interest rates for the 30% who have a mortgage. I don't get it....
This is where my plan to have job losses determined by lottery comes in. If society *requires* some people to become unemployed, then the mechanism for this should be brutal and indiscriminate. It must be as likely to fell the mighty as the meek.
Under that policy, the ongoing use of Monetary Policy and specifically Interest Rates, as the only utilised mechanism for controlling inflation would last 5 minutes!
Its a prefectly sensible and equitable way of managing inflation, love your thinking.
Hmmm wealth distribution options… wealthy have multiple balls and can pay poor people have these balls distributed to them, poor person has more chances to lose job but has offset this risk… 🤔🧐
It’s an interesting “dilemma”. The RBA’s charter requires them to maximize employment. Yet as we know text book inflation control requires curtailing demand, a feature of which is to put people out of work who produce goods and services, which reduces spending further in a “neat” virtuous circle.
I understand the RBA's sole brief is set by (ahem) the RBA & is solely based on an inflatn target btwn 2%-3%. It is not their role to focus on anything else.
The Feds seem quite happy to blame the RBA for something for which they aren't responsible...the Feds on the other hand....
If forcing people into unemployment is a fiscal strategy then those people should be compensated by the government for the impact on their lives. This is where UBI would be pertinent. Also, the demonisation of the unemployed needs to stop.
Obviously they do want this. Interest rates are really the only leaver they’ve got to push and pull. Do you think Aus needs the RBA anymore in the way it’s structured and works these days? I don’t think so. Time for a new responsive structure to modern economic forces and models IMO.
Chalmers should have taken the RBA Review and reform of the thinking of the organisation along with price caps more seriously and urgently to me, amongst his priorities.
Comments
See how they cope ?
Say a minimum period of 12 months.!
And if productivity doesn’t improve, take them out the back behind the bike shed and shoot them.
Like that will work.!
When are we, as a society, going to realise that our current measures of success are divorced from the actual experiences of humans?
The Government has many.
Some Boomers and Properdee Specuvestors and those with no mortgage are laughing and spending up big.
I was unemployed 6times in my working life, its the absolute pits. You have the nightmare of looking 4work, then there's lose of saving that you never get back-these days that would include super.
So basically they want a heap of ppl in poverty.I see that as immoral
- All inflation is demand pull.
- Inflation can only be fought with monetary policy.
- You are all nails.
- We. Are. The. Hammer.
Not willing to budge on the (tradition), NAIRU and Govt not willing to budge on employment numbers.
If you make people unemployed you resolve the supply side issues by decreasing demand.
The balancing act is to avoid a recession
Orthodox economists are pretty much wrong about everything related to macroeconomics.
So long as you do so without two consecutive quarters of negative growth, you've done so while avoiding a recession.
There are many options, they're aiming at workers
E.g.
Price of energy
Price of renting
Price if shipping
Etc
Will these be materially changed by more unemployment.
But that's how it work, because the government doesn't want to tax the fuck out of corporate profits and the rich
Very Odd System🤦
The whole banking system is a parasite based on spending future income. Taking even more is the only way to pay for assets, derivatives and other "paid by the future" riches...yep, even homes!
Future is here now. Who pays?
They said it last time
Wait…
Not those experts.
https://www.abc.net.au/news/2023-06-25/the-rba-wants-more-unemployment-lets-applaud-it/102506500
O tempora, o mores.
Its a prefectly sensible and equitable way of managing inflation, love your thinking.
The Feds seem quite happy to blame the RBA for something for which they aren't responsible...the Feds on the other hand....
Chalmers should have taken the RBA Review and reform of the thinking of the organisation along with price caps more seriously and urgently to me, amongst his priorities.