Despite any impression you’ve gained, fixing inflation isn’t the end game. It’s getting the economy back to strong, non-inflationary growth. But I’m not sure present policies will get us there.
So, Kennedy said, “when assessing the policy decisions made during the pandemic there was an additional consideration for policymakers in wanting to not just return to the pre-pandemic situation, but to surpass it.”One economist who shares this longer perspective is ANZ Bank’s Richard Yetsenga. He describes the 2010s as our “horrendum decennium” where unemployment and underemployment were relatively high, consumer spending relatively weak and business had plenty of idle production capacity.
Yetsenga says this decision to entrench relatively high unemployment was a mistake. “Unemployment, underemployment and the inequality they contribute to, all affect macroeconomic outcomes [adversely]“. To employ more people, give more hours to those working part-time, and raise wage growth, business needs to see demand strong enough to pay for the labour.Unemployment is at its lowest in five decades and underemployment has fallen significantly. Real consumer spending is 9 per cent above pre-pandemic levels, and businesses’ capacity utilisation has been restored to high levels not seen since before the global financial crisis.
“We should expect the ‘real’ side of the economy to have improved as well: more demand, more employment and more investment.” Third, the idea that we can’t get higher economic growth until we get more productivity improvement has got the “direction of causation” the wrong way around. We won’t get much productivity improvement until we bring about more growth.
Typical Union Labor statement Then again for business to be successful it needs viable labour source There needs to be a fair balance
ALBO'S ON ONE MONTH HOLIDAYS already
Lazy pathetic PM.
So, freezing or reducing wages, freezes or reduces consumer demand? Who knew? Ask the businesses with fewer customers?
Albo the Homeless Boy likes to go home to his govt house early
OH PRINTING MONEY AT WILL IS TERRORISM NOT ECONOMICS
EXODUS ENEMIES INVASIONS ARE NOT GROWTH IT'S AIDING THE ENEMIES AND WAR!
Ok so where do businesses get the extra money to do this Or are you going to give them that fantasy Labour money tree you seem to have
Will you stop printing easy money for the rich, mostly the White Anglo mob, in Australia since 1788?
But the people running Australian businesses are basically hopeless: short term vision focussed solely on greed and immediate profits for owners. Their philosophy is employ as few people as possible for as little as possible and complain that they need government help.