We're Being Lied To | Inflation Is Real But What's The Real Cause?
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- čas přidán 22. 08. 2024
- I think we're being lied to! In this episode we discuss all things Inflation and Interest Rates and how what we're being told is the cause might not be true!!!!
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Hey there, welcome back to the channel! In today's video, we're diving deep into the buzz around inflation and interest rates. We know these topics can be a bit perplexing, so we're breaking it down for you.
First things first, what is inflation? It's when prices for things like gas and groceries rise over time. Right now, inflation in Australia is at 7%, which means you need 7% more money to buy the same stuff as before. Your money's losing value, and you can't buy as much.
But why is everyone losing their minds over this? Well, the Reserve Bank of Australia (RBA) is using a powerful tool - raising interest rates. It makes borrowing money cost more, which slows spending and cools down the economy. The RBA's goal? Bring down inflation. So, in a way, it's like having less money to spend.
Now, here's where it gets juicy. The RBA's former Governor, Philip Lowe, said rates wouldn't rise until 2024. But guess what? Rates went up 12 times since then! People trusted his word and borrowed for homes and investments. But now, interest rates are through the roof.
Let's put it into perspective: In 2022, you could get a home loan for 1.9%, now it's around 5.5% to 6%. That's a massive leap! It's affecting borrowing power - people who could get a $500,000 mortgage in April 2022 now only qualify for $300,000. Imagine having a $4 million home loan approval drop to $2.4 million. Crazy, right?
Phillip Lowe's saga continues, from his statement backfire to his dismissal and being replaced by Michelle Bullock. Meanwhile, Australians have differing views on the cause of inflation. Research from the Australia Institute reveals that many think it's companies hiking prices, not wages.
Aussies propose solutions too: price caps on essentials, and taxing corporations' excess profits to cut prices. Turns out, most people aren't thrilled about just raising interest rates to tackle inflation.
Interesting fact: while inflation affects everyone, only 35% of Aussies have a mortgage, according to the 2021 census. So, should the government look beyond just interest rates to fight inflation?
Thanks for joining us today! If you found this breakdown helpful, don't forget to hit that like button and subscribe for more insights. Stay tuned for next week's episode where we'll keep the knowledge flowing. See you then!
Very interesting Jesse, proud of you for speaking out & telling it how it really is 👌
Thanks Lindee! So sick of the BS had to tell it straight 🙌
Large corporates are causing inflation by price gouging and the Australian government is happy about this because they collect tax from the profits. Increasing the interest rates is about keeping the AUD in line with the USD. The effect on home borrowers is just a fallout.
Exactly! Large corporations are the cause for sure and are using ‘inflation’ as a cover to take advantage of the situation!
Thanks for sharing Jesse!!!
Thanks for watching!
Wages did not cause this inflation. It was caused by Government borrowing money during covid.
Without a doubt!
Greed is driving inflation.
Without a doubt!
That was seriously interesting! I thought way more people had a mortgage!
I know right! Only 35% thought it would have been 70% atleast!
Because the Government was to scard to raze the GST ,so it was a ploy to create inflation giving the Government a win fall of including the GST 16.4% + and Rising ?….JB
I agree, increasing GST temporarily could have helped to curb inflation then it could have been reduced after 12 months. Instead of just smashing interest rates
Great informative stuff here. Thanks Jesse. 👍
Glad it was helpful!
It’s just an add on to the GST now = 17.4 % and the Government is enjoying the windfall by there own making .Give that thought to the finance. Specialist…as to come out and raise the 10% GST would be for the government, but with inflation, I have a win prove me wrong…JB
That is an interesting thought. I also thought that if they raised GST it would help to reduce inflation that way every Australian contributes. And it’s even if you earn more and spend more then you pay more GST. Every one contributes then. Raise it short term then reduce it. Only problem they likely would never reduce it 🤦♂️
Not true….not the cause!
I disagree! Companies are taking advantage of the situation. Profits should not be increasing for business if there were genuine inflation
Great video & excellent explanations ! How does paying more Interest to My Bank help with Reducing Inflation ? All Bullshit !
Exactly mate! It doesn’t do anything to reduce inflation only add profit to the banks!
Inflation is not calculated on fuel and also not all grocery items??
What is it calculated on then? Isn’t all goods and services?
The biggest thing leading to inflation was the government handing out free money. What you do with your free money from COVID. Harvey Norman made big profits of people spending their free money instead of saving it.
I agree, free money, people accessing their super and going on a spending free after lockdowns ended. It all caught up
Well. I just learnt something new. Thanks mate.
Glad to hear it!