Company profits, not wages, have driven the soaring inflation in Australia, an analysis from the Australia Institute has found.
Australia is in the midst of a supply side inflation shock, with price increases being driven by breaks in supply chains because of the pandemic and natural disasters, as well as energy supply disruption due to Russia’s invasion of Ukraine. But companies have posted profits over and above those increases.
Increases in labour costs account for just 18% of the inflation above what the RBA wants to see before it eases interest rate increases. The most recent GDP data shows Australian businesses increased prices by a total of $160bn a year above taxes, labour and other costs. And that without those profit gains, inflation since the pandemic would have risen much more slowly, at just 2.7%.
100% and corporate greed must be curtailed
So the price of gas, petrol and agricultural prices due to floods/droughts etc is because of profits? Well there’s no Scomo to blame anymore I suppose.
So a notoriously far left economist working for a notoriously far left think tank has concluded that “evil capitalist businesses” are to blame for the economy 🤔 There’s a shocker lol
A study by leftist think tanks? 👍👍😂😂
No, surely not. 🤷🏽♂️
That’s hardly a revelation, in facts it’s bleeding obvious.
time to tax the profiteers , easy fix .
Absurd profits were avoided by RBA Lowe, even denied by corporations who enjoyed their largesse quietly. Now this! I reckon it’ll all be swept away by a few targeted donations to politicians.