It's easier to talk about 'cost of living' than low wages
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- čas přidán 11. 06. 2024
- It's easier for politicians to talk about a general problem like 'cost of living,' than how to make wages for low-income earners keep up with the price of essentials.
The Budget reveals the Government's priorities. So what are they doing to help the most vulnerable Australians afford the things they need?
Executive Director Richard Denniss explains.
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Tonight's budget will be a disappointment no doubt with the government giving 'cost of living' relief via additional allowances. They are only a band-aid solution that are handed out each year on the whim of the government and can just be stopped with the stroke of a pen.
What about these institutions and businesses who believe they are entitled to annual price rises "in line with inflation"? Such price rises are what causes inflation.
Like TOLL operators. LNP agreed to a contract for increases always above inflation. Economic management so bad demonstrates complete incompetence
Absolutely wrong. Price rises by companies do not cause inflation. Inflation is a monetary phenomenon and price rise by individuals or companies does not produce inflation because it does not produce more money. .
@@Rob-fx2dw Semantics.
Dr Denniss has just described an "accelerated CPI" due to companies increasing profit margins over and above their costs. This effect has seen an accelerated price rise greater than price rises in previous years.
These effects were not generated by the "money printing" mechanism of central banks-- which do cause inflation.
It is not helpful to split hairs, we'll just call this CPI increase inflation.
@@attilajuhasz2526 Increasing prices by private companies do not cause inflation. Richard Denniss is wrong and that is because he is ignorant of the facts. The fact that companies or individuals increasing the prices they demand does not create new money but merely transfers it from one entity to another. His understanding if correct would mean transfer of money from one person to another would always create inflation which is an absolutely absurdity.
@@Rob-fx2dw increasing the price of a fixed quantity of goods from one time period to the next is ... what?
Whatever you call it, "it" lessens the ability of a fixed salary/wage-earner to afford that same quantity of goods as time progresses. That is the crux of the video. No need for pedantry.
Richard Denniss makes some good points and should speak up more often. We can't continue to plug the leaks on the HMAS Australia when and where they appear, the ship needs a massive renovation from the bottom up before it sinks. Over time we have brought 100 of thousands of people, immigrants, onto this leaky boat without any cabins for them to live! We need to know how we are in the situation that we are in and not so much how we patch a messed system going forward. For example cost of living is high, including essentials like food, energy, fuel etc and so an answer is to increase people's wages. This is not going to necessarily happen as companies will want to take extra profits, companies want higher stock valuation and stock holders want more dividends. But we have to understand how we got to this position in the first place and fix the causes of these and not have to deal with the inevitable problems downstream. Cost of essentials (cost of living) should not be excessive. Companies providing essentials should not have a CEO on massive salary package. Electricity, gas, fuel, food, internet, health services, insurance and cost of property (a house in not a vehicle to make property holder rich its a human right for all of us to have a roof over our heads), rents should all be cheap and can be in a country like Australia. People cannot live and work and achieve and make Australia a great country. People will not and are not having children and rightly so, with no hope of affording their upbringing. All of these things could have been prevented. Australia has massive problems that are not going away if you just patch here and there at the periphery. The big end of town are doing very well indeed at the expense of the struggling people of Australia growing in numbers.
So many in Australia are paid what I like to call SLAVERY RATES.
In other words the pay these people receive permits them to work..but not to advance.
Yep. And now, the pay rates permit them to work, and run a car to get to work, but that car also has to double as a home.
I guess many people are working harder than ever, for less than they've ever been able to purchase, with those 'wages'.
Is it any wonder the greatest wealth transfer in history has happened, and billionaire wealth has increased by truly remarkable levels, over the last 4 years.
How about Australia taxes fossil fuels and billionaire's? Other countries do, why do we have to be bottom LNP 1%
No mention of that solution by Jim Chalmers last night. But is is the solution so why no mention of it?
Doesn't anyone else think that have continually rising prices and continually rising wages is strange? It doesn't seem natural.
Because talking IS ALL they ever do NO action !!!!!!!!!!!!!!!!!!!!
Budget one how pensioners
if bro spoke any straighter he'd turn into a ruler
Paying off your house is not luck. Take time and hard work.
Young people have always struggled in the early years. Today is no different. They start off in an organisation with a starting wage and not much experience. Let's encourage the young to work hard, upskill, get a good education, do an excellent job at work, spend less than you earn, save 50% + of your income if you are living with Mum and Dad, and to be patient. Saving a house deposit takes years, no different to me 25 years ago, then buy a house you can afford, not one that looks like mum and dad's house.
Wages have increased a lot in the last 3 years. It cannot continue at those same rates otherwise we will find ourselves in a wage price spiral.
The Australia Institute - An organisation set up by the people who want to legitimise their own failed economics.
Look at the statements of Richard Denniss:- "Are wages rising fast enough to help people keep their head above water. We need to ask ourselves what's happening to the price of essentials, what's happening to wages for low paid workers and if the price of essentials is rising a lot faster than wages for low income earners then we know we are pushing people into poverty"
This just infantile rubbish that ignores the very economic conditions that create poverty in economies.
The creation of poverty is the loss of focus on measures that improve industry efficiencies of those who produce goods and services.
It is Not the relative low wages that result from a sector of the community as Richard Denniss thinks. Relatively higher efficiencies create more wealth in the economy. Not some politically based scheme like equalisation of wage disparities.
this is total waffle
keep wages low!
Increasing wages to keep up with inflation, fuels and perpetuates that inflation. The government is not in a position to push up wages. It has always been unfair to the people on low incomes. That is why they pay much less (or sometimes zero) tax.
That's not how that works. Subsidising big corps and giving them tax breaks and not stopping them price gouging is what's driving inflation.
The rich are making the poor poorer, that's what needs to be fixed.
completely false!
this inflation is caused exclusively by the increase in gas caused by the war in Ukraine and the gas industry choosing to send the gas overseas for the highest price. Wages have been stagnant for a decade. Your theory then would mean we don't have inflation.
@@Terry-xx2xm prove it.
Also, wrong.
@@thekaxmax why? What evidence did you supply? Just some neo liberal talking points.
Do you really follow this channel?
@@Terry-xx2xm 1: I'm as anti-neoliberal as you can get.
2: you made the claim that I'm disputing, you present your data and backing documentation first. That's how this works.