<
https://australiainstitute.org.au/post/profit-price-spiral-excess-profits-fuelling-inflation-interest-rates-not-wages/>
"New empirical research reveals the main driver for inflation in Australia is
excess corporate profits, not wages, and that inflation would have stayed
within the RBA target band if corporates had not squeezed consumers through the
pandemic via excess price hikes.
The dramatic expansion of business profits has gone mostly ignored by the RBA
and other macroeconomic policy-makers, who have focused instead on a supposed
‘wage-price’ spiral which does not exist. This suggests the focus of the RBA on
wage restraint is misplaced and unfair, and that interest rates would be far
lower today if companies had not gouged customers at the checkout.
The report
Profit-Price Spiral: The Truth Behind Australia’s Inflation
(attached) comes in the same week supermarket giants Woolworths and Coles
posted soaring profits, with banks, gas and petrol companies posting similarly
soaring returns."
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
