49
If unemployment is the cure for inflation who pays the price? (aussie.zone)
submitted 7 months ago by to c/australianpolitics@aussie.zone
32 comments fedilink hide all child comments
 

Must be those poor, poor fossil fuel corporations, that's why govt subsidies are never enough 🤑

https://thepoint.com.au/opinions/260311-if-unemployment-is-the-cure-for-inflation-who-pays-the-price

you are viewing a single comment's thread
view the rest of the comments
[–] -3 points 7 months ago (6 children)

What counts as 'rich' ? Is it people with an income over the average, say $100,000 or more ? or are you talking about those earning over a million per year ?

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 6 child comments
    •
  • [–] 4 points 7 months ago* (2 children)

    Let's start flensing the top 1% and go from there shall we?

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 0 points 7 months ago* (last edited 7 months ago) (1 child)

    ok but how would that bring down country wide inflation?

    Sorry I had to use mistral AI on my PC to generate this because I cbf explaining

    Unemployment and inflation are inversely related in the short term due to the Phillips Curve—when demand for labour rises (lowering unemployment), wages and prices often increase, fuelling inflation. Conversely, high unemployment typically suppresses wage growth and spending power, reducing inflationary pressures.

    If you're actually interested there's a whole article on it here

    https://www.investopedia.com/articles/markets/081515/how-inflation-and-unemployment-are-related.asp

    tldr taxing the richest 1% wouldn't take a bundle of money out of the economy, and it especially wouldn't take inflation out of things regular people buy, like groceries and take away because it's not something the ultra rich have an impact on anyway

    Here's Australias latest CPI: https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 1 child comment
    •
  • [–] 4 points 7 months ago

    It would be stupidly unpopular, but I actually think there should be some legislated amount the RBA then could regulate how much taxes go up and down. (Including income and/or corporate taxes)

    Starting with the top tax brackets, and in extreme cases going further down tax brackets.

    How this would work in practice, since tax is calculated annually, I dunno.

    Bur it's patently insane we expect the RBA to control inflation and unemployment with so few tools.

    Interest rate and quantitative easing/tightening, that's pretty much it, right?

  • permalink
  • fedilink
  • source
  • parent
  • [–] 1 point 7 months ago

    3x the median, and make > 5x the median illegal, just as we have for below minimum wage.

    that aside l, instead of raising rates do a temp raise in Super for everyone above median wage, take the money from their wages but it doesn't go to banks. That takes money out of the Economy now to cool it.

    PS. I have zero debt by choice and we (m & f couple) travel SE Asia in the cheap for 6 months a year.

  • permalink
  • fedilink
  • source
  • parent