You judge an organisation objectively by its outputs, and the Reserve Bank is objectively an organisation designed to make workers pay the cost of economic instability.
I struggle every day to understand how the RBA which presumably has some smart, experienced and educated people on it, continue to 1) willfully ignore analysis that shows their methods of tackling inflation aren’t clever enough and 2) shit all over ordinary Australians because that’s easier than admitting to 1). thinking a healthy economy depends on higher unemployment is appalling. But they’re cocooned from it so why care, huh? 🤔
Greg, it’s been a long while since I studied economics and I’m sure I may have missed some new knowledge in the meantime. But, what I’ve also observed, is that we now have options that would have been impractical 40 years ago. Raising interest rates has always been easy because we have a small number of banks. But what if we now applied an income tax levy to high income earners? Now you just need to provide new tax tables to a handful of payroll software providers. MYOB and Xero would probably account for 90% of employers. Increase taxes on those earning, for example, more than $120k, and you could still reduce demand in the economy. You would just change who bears the cost.
Like you I don't believe the Reserve look at the big picture and in particular the people they are actually hurting when raising interest rates. Only got to ask my daughters what they think and what they have to then do to make ends meet.
There has to be another lever to pull, besides a interest rate hike that affects first home buyers more than any other group.
You judge an organisation objectively by its outputs, and the Reserve Bank is objectively an organisation designed to make workers pay the cost of economic instability.
I struggle every day to understand how the RBA which presumably has some smart, experienced and educated people on it, continue to 1) willfully ignore analysis that shows their methods of tackling inflation aren’t clever enough and 2) shit all over ordinary Australians because that’s easier than admitting to 1). thinking a healthy economy depends on higher unemployment is appalling. But they’re cocooned from it so why care, huh? 🤔
Greg, it’s been a long while since I studied economics and I’m sure I may have missed some new knowledge in the meantime. But, what I’ve also observed, is that we now have options that would have been impractical 40 years ago. Raising interest rates has always been easy because we have a small number of banks. But what if we now applied an income tax levy to high income earners? Now you just need to provide new tax tables to a handful of payroll software providers. MYOB and Xero would probably account for 90% of employers. Increase taxes on those earning, for example, more than $120k, and you could still reduce demand in the economy. You would just change who bears the cost.
Like you I don't believe the Reserve look at the big picture and in particular the people they are actually hurting when raising interest rates. Only got to ask my daughters what they think and what they have to then do to make ends meet.
There has to be another lever to pull, besides a interest rate hike that affects first home buyers more than any other group.