@power-public-purse.bsky.social
The “wage-price spiral” of the 1970s is a myth. Workers traded labour for wages; they didn’t set prices. Businesses, protecting profits, raised prices when wages rose—a profit-price spiral. Inflation was driven by supply shocks like oil crises, not labour. Blaming workers misses the real story.
December 12, 2024 at 7:06 PM
The “wage-price spiral” of the 1970s is a myth. Workers traded labour for wages; they didn’t set prices. Businesses, protecting profits, raised prices when wages rose—a profit-price spiral. Inflation was driven by supply shocks like oil crises, not labour. Blaming workers misses the real story.
NAIRU assumes low unemployment causes inflation, but this is simply untrue. Inflation arises from factors like corporate pricing, supply shocks, and monopolistic power. There’s no empirical basis for the idea that full employment drives inflation, and the wage-price spiral has never been true.
December 12, 2024 at 12:14 PM
NAIRU assumes low unemployment causes inflation, but this is simply untrue. Inflation arises from factors like corporate pricing, supply shocks, and monopolistic power. There’s no empirical basis for the idea that full employment drives inflation, and the wage-price spiral has never been true.
No, the RBA is stacked with neoclassical-trained economists. Their education, theory, and models do not explain the real world. Perversely, they believe some members of the community must suffer for the sake of the “economy” TINA (there is no alternative) while entirely untrue that is their belief
December 12, 2024 at 12:06 PM
No, the RBA is stacked with neoclassical-trained economists. Their education, theory, and models do not explain the real world. Perversely, they believe some members of the community must suffer for the sake of the “economy” TINA (there is no alternative) while entirely untrue that is their belief
People like @punterspolitics.bsky.social, @michaelwestbiz.bsky.social, and friendlyjordies are so close. If you could only dispel their lingering neoclassical misconceptions of how money and budgets work, we would be able to reach an even bigger audience.
December 12, 2024 at 9:54 AM
People like @punterspolitics.bsky.social, @michaelwestbiz.bsky.social, and friendlyjordies are so close. If you could only dispel their lingering neoclassical misconceptions of how money and budgets work, we would be able to reach an even bigger audience.
Yes, Treasury Laws Amendment (Reserve Bank Reforms) Act 2024 - assented to 29 November 2024.
December 11, 2024 at 7:13 AM
Yes, Treasury Laws Amendment (Reserve Bank Reforms) Act 2024 - assented to 29 November 2024.
The Treasurer will soon be able to appoint members to the new interest rate-setting board. This is a chance to bring in leaders like Bill Mitchell, Steve Keen, and Steven Hail, economists with bold ideas focused on equity, full employment, and sustainability. @williammitchell.bsky.social
December 10, 2024 at 10:00 AM
The Treasurer will soon be able to appoint members to the new interest rate-setting board. This is a chance to bring in leaders like Bill Mitchell, Steve Keen, and Steven Hail, economists with bold ideas focused on equity, full employment, and sustainability. @williammitchell.bsky.social
This worldview dismisses alternative approaches and leads to policies that unintentionally undermine governments trying to address inequality and growth differently. The issue isn’t partisanship—it’s economic orthodoxy.
December 10, 2024 at 4:53 AM
This worldview dismisses alternative approaches and leads to policies that unintentionally undermine governments trying to address inequality and growth differently. The issue isn’t partisanship—it’s economic orthodoxy.
IMO the RBA board likely believes it’s acting a-politically, but its decisions are rooted in the narrow framework of neoclassical economics.
December 10, 2024 at 4:52 AM
IMO the RBA board likely believes it’s acting a-politically, but its decisions are rooted in the narrow framework of neoclassical economics.
It sounds absurd because the entire theory—sacrificing others’ livelihoods for ‘economic stability’—is absurd. A just economy doesn’t rely on people suffering for others’ prosperity; it ensures shared progress for all.
December 10, 2024 at 4:09 AM
It sounds absurd because the entire theory—sacrificing others’ livelihoods for ‘economic stability’—is absurd. A just economy doesn’t rely on people suffering for others’ prosperity; it ensures shared progress for all.
The RBA’s statement confirms they want ‘other’ people to lose their jobs to curb inflation—ordinary workers, not those in positions of influence or power. Imagine proposing RBA board members’ families lose their jobs to stabilize prices.
December 10, 2024 at 4:08 AM
The RBA’s statement confirms they want ‘other’ people to lose their jobs to curb inflation—ordinary workers, not those in positions of influence or power. Imagine proposing RBA board members’ families lose their jobs to stabilize prices.
The solution?
Demand fiscal-monetary coordination, revised inflation targets, and accountability for policies that exacerbate inequality. Australia needs policies that prioritise people’s economic wellbeing, not rigid monetary dogmas.
Demand fiscal-monetary coordination, revised inflation targets, and accountability for policies that exacerbate inequality. Australia needs policies that prioritise people’s economic wellbeing, not rigid monetary dogmas.
December 10, 2024 at 3:54 AM
The solution?
Demand fiscal-monetary coordination, revised inflation targets, and accountability for policies that exacerbate inequality. Australia needs policies that prioritise people’s economic wellbeing, not rigid monetary dogmas.
Demand fiscal-monetary coordination, revised inflation targets, and accountability for policies that exacerbate inequality. Australia needs policies that prioritise people’s economic wellbeing, not rigid monetary dogmas.
Democratic accountability matters:
The Treasurer has the power under the RBA Act to question the Board and recalibrate its priorities. It’s time for monetary policy to align with broader societal goals and support economic recovery, not austerity. #PeopleFirstEconomics
The Treasurer has the power under the RBA Act to question the Board and recalibrate its priorities. It’s time for monetary policy to align with broader societal goals and support economic recovery, not austerity. #PeopleFirstEconomics
December 10, 2024 at 3:53 AM
Democratic accountability matters:
The Treasurer has the power under the RBA Act to question the Board and recalibrate its priorities. It’s time for monetary policy to align with broader societal goals and support economic recovery, not austerity. #PeopleFirstEconomics
The Treasurer has the power under the RBA Act to question the Board and recalibrate its priorities. It’s time for monetary policy to align with broader societal goals and support economic recovery, not austerity. #PeopleFirstEconomics
🎯 Rethink inflation targets:
Clinging to a 2.5% midpoint target ignores structural shifts like global trade changes and low productivity. A more flexible approach is needed to balance price stability with full employment and economic wellbeing.
Clinging to a 2.5% midpoint target ignores structural shifts like global trade changes and low productivity. A more flexible approach is needed to balance price stability with full employment and economic wellbeing.
December 10, 2024 at 3:52 AM
🎯 Rethink inflation targets:
Clinging to a 2.5% midpoint target ignores structural shifts like global trade changes and low productivity. A more flexible approach is needed to balance price stability with full employment and economic wellbeing.
Clinging to a 2.5% midpoint target ignores structural shifts like global trade changes and low productivity. A more flexible approach is needed to balance price stability with full employment and economic wellbeing.
Missed opportunity for fiscal-monetary coordination:
The RBA operates in isolation, neglecting how fiscal policy can alleviate supply constraints and boost productivity. Infrastructure spending and public investment could achieve better outcomes than rate hikes.
The RBA operates in isolation, neglecting how fiscal policy can alleviate supply constraints and boost productivity. Infrastructure spending and public investment could achieve better outcomes than rate hikes.
December 10, 2024 at 3:51 AM
Missed opportunity for fiscal-monetary coordination:
The RBA operates in isolation, neglecting how fiscal policy can alleviate supply constraints and boost productivity. Infrastructure spending and public investment could achieve better outcomes than rate hikes.
The RBA operates in isolation, neglecting how fiscal policy can alleviate supply constraints and boost productivity. Infrastructure spending and public investment could achieve better outcomes than rate hikes.
📉 Growth and consumption are weak:
The RBA acknowledges sluggish GDP growth (0.8% YoY) and declining household consumption, yet it sticks to policies that suppress demand. This risks pushing Australia closer to a recession while doing little to address inflation momentum.
The RBA acknowledges sluggish GDP growth (0.8% YoY) and declining household consumption, yet it sticks to policies that suppress demand. This risks pushing Australia closer to a recession while doing little to address inflation momentum.
December 10, 2024 at 3:51 AM
📉 Growth and consumption are weak:
The RBA acknowledges sluggish GDP growth (0.8% YoY) and declining household consumption, yet it sticks to policies that suppress demand. This risks pushing Australia closer to a recession while doing little to address inflation momentum.
The RBA acknowledges sluggish GDP growth (0.8% YoY) and declining household consumption, yet it sticks to policies that suppress demand. This risks pushing Australia closer to a recession while doing little to address inflation momentum.
🔍 Misdiagnosing inflation drivers:
The RBA attributes high inflation to demand pressures but ignores key factors like supply chain issues, corporate profit-taking, and geopolitical uncertainty. Higher rates can’t fix these and only worsen economic hardship. #EconomicJustice
The RBA attributes high inflation to demand pressures but ignores key factors like supply chain issues, corporate profit-taking, and geopolitical uncertainty. Higher rates can’t fix these and only worsen economic hardship. #EconomicJustice
December 10, 2024 at 3:49 AM
🔍 Misdiagnosing inflation drivers:
The RBA attributes high inflation to demand pressures but ignores key factors like supply chain issues, corporate profit-taking, and geopolitical uncertainty. Higher rates can’t fix these and only worsen economic hardship. #EconomicJustice
The RBA attributes high inflation to demand pressures but ignores key factors like supply chain issues, corporate profit-taking, and geopolitical uncertainty. Higher rates can’t fix these and only worsen economic hardship. #EconomicJustice
The Right to Democratic Oversight
Strengthening democratic accountability in economic decision-making by involving communities, workers, and unions in shaping policies that impact their lives.
Strengthening democratic accountability in economic decision-making by involving communities, workers, and unions in shaping policies that impact their lives.
December 8, 2024 at 2:53 AM
The Right to Democratic Oversight
Strengthening democratic accountability in economic decision-making by involving communities, workers, and unions in shaping policies that impact their lives.
Strengthening democratic accountability in economic decision-making by involving communities, workers, and unions in shaping policies that impact their lives.
The Right to Public Infrastructure
Investing in accessible transport, communications, and energy systems designed to serve communities, not just profit motives. This includes a strong National Broadband Network (NBN) for equitable digital access.
Investing in accessible transport, communications, and energy systems designed to serve communities, not just profit motives. This includes a strong National Broadband Network (NBN) for equitable digital access.
December 8, 2024 at 2:52 AM
The Right to Public Infrastructure
Investing in accessible transport, communications, and energy systems designed to serve communities, not just profit motives. This includes a strong National Broadband Network (NBN) for equitable digital access.
Investing in accessible transport, communications, and energy systems designed to serve communities, not just profit motives. This includes a strong National Broadband Network (NBN) for equitable digital access.
The Right to Fair Markets
Ensure markets serve public needs through regulations that prevent monopolies, promote ethical business practices, and prioritise Australian-made goods where feasible.
Ensure markets serve public needs through regulations that prevent monopolies, promote ethical business practices, and prioritise Australian-made goods where feasible.
December 8, 2024 at 2:52 AM
The Right to Fair Markets
Ensure markets serve public needs through regulations that prevent monopolies, promote ethical business practices, and prioritise Australian-made goods where feasible.
Ensure markets serve public needs through regulations that prevent monopolies, promote ethical business practices, and prioritise Australian-made goods where feasible.
The Right to a Sustainable Environment
Australians have the right to clean air, water, and land. Policies would focus on protecting natural resources, transitioning to renewable energy, and holding corporations accountable for environmental damage.
Australians have the right to clean air, water, and land. Policies would focus on protecting natural resources, transitioning to renewable energy, and holding corporations accountable for environmental damage.
December 8, 2024 at 2:51 AM
The Right to a Sustainable Environment
Australians have the right to clean air, water, and land. Policies would focus on protecting natural resources, transitioning to renewable energy, and holding corporations accountable for environmental damage.
Australians have the right to clean air, water, and land. Policies would focus on protecting natural resources, transitioning to renewable energy, and holding corporations accountable for environmental damage.