<
https://theconversation.com/the-rbas-policy-deliberately-creates-unemployment-so-why-do-we-treat-the-jobless-so-badly-280574>
"The Reserve Bank of Australia (RBA) will look at the latest unemployment
figures – 4.3%, roughly 650,000 people out of work – and see a labour market
that is still “too tight”.
In other words, not enough people are unemployed for inflation to come down.
Although that figure reflects almost none of the economic fallout from the war
in the Middle East, it will strengthen the case for further interest rate
hikes.
The logic of these expected rate hikes is to slow spending by pushing up
mortgage repayments and, ultimately, pushing more people out of work. Those
people will land in an employment services system that, as a 2023 parliamentary
inquiry found, treats them more like fraudsters than citizens who need help.
The fact the RBA is intentionally lifting the unemployment rate is rarely said
out loud. However, Governor Michele Bullock came close in a speech in 2023:
If unemployment remains too low for too long, inflation expectations will
rise, which will make it that much harder for the monetary authorities to
bring inflation back down.
Our current inflation management framework is problematic in theory, in
practice and in impact."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
