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https://www.theguardian.com/business/2022/jul/18/rising-corporate-profits-major-factor-in-australias-escalating-inflation-report-finds>
"Wages have had little or no effect on Australia’s inflation rate in the past
three years, according to new economic analysis from a leading thinktank.
As the treasurer, Jim Chalmers, rubbished what he called “dire warnings” from
commentators about the impact of rising wages, a report from progressive
thinktank the Australia Institute found rising corporate profits had been a
major factor in Australia’s inflation spike.
In the report, released on Monday, the institute analysed national accounts
data to show that rising corporate profits had been a major factor in inflation
and that wages had “no contribution” to inflation in the 2019-20 and 2020-21
financial years, and contributed just 0.6% of Australia’s inflation in this
current financial year.
“Australia isn’t experiencing a wage-price spiral, it’s at the beginning of a
price-profit spiral,” said Australia Institute chief economist, Dr Richard
Denniss.
“The national accounts show it is rising profits, not rising costs, that are
driving Australia’s inflation. While workers are being asked to make sacrifices
in the name of controlling inflation, the data makes clear that it is the
corporate sector that needs to tighten its belt.”
The report points out that wage growth was at record low levels, while the
profit share was at a near-record share of GDP."
Via Muse.
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
