Arts & Humanities

When inflation will end

Arts & Humanities

Posted by: khal123

3rd Jun 2024 09:38pm

Inflation everyday rising as fast as speeding train without any arising stops, the governments say something and the politicians say something and the economists and businessmen say something too. But the majority of people suffering. Who lights the street for small hope even

Comments 8

jtmorri
  • 12th Jul 2024 12:37pm

One major issue I see from years of the Liberal Federal Government was that wages were stagnant or going backwards. There were no gradual and necessary wage increases to up with inflation and keep the economy in balance. Post covid and a change in government has rightfully so, called for people to be paid fairly and wages began to increase from a low base, which impacts inflation as well as the same time costing business more. I blame the economic management of the Morrison government in looking after businesses by keeping workers poorly paid.

Goods are still difficult to source. The Ukraine-Russia conflict disrupted supply chains again. Examples are in foods cacoa, coffee. Other crops/produce have failed due to global warming, even in Australia where we have short supply. Livestock have been hit by disease and culled. The higher demand and short supply of goods has seen inflation increase.

This also applies to the housing market in Australia and in many other countries whereby the prices of homes are at their highest and supply is lower due to less land release, new homes not being approved and built, short stay schemes, investment properties, a higher than usual intake of immigrants.

Business is now doing it tougher (not as much to sell but need to stay viable, wages increasing to keep up with inflation over the past several years) and as we know they have hiked their prices especially for energy, insurance, communication, food etc. Then the state governments need to provide services so they have hiked registrations etc.

We have the working poor (especially the younger generations in Australia) middle Australia who are still buying goods and services and then we have the older generation of retirees sitting on their money, investment properties and spending, spending and holidaying. The younger working generation are being slammed with all the price increases of inflation. So, it is the people still spending who continue to drive up inflation and it isn't coming down quick enough or under control from the point of view of The Reserve Bank and economists. There is one sale after another, then people get their tax returns and finally the next thing we know it is Christmas and people are buying big again.

The way to decrease inflation typically has been to increase interest rates. The Reserve Bank, government and politicians knows this puts a strain on individuals and businesses (especially the young working poor and small business). I feel we need one more interest rate hike for this end of this year, but I can't say if that will stop people spending on what many of us now see as luxuries. How many interest rates it would take to stop spending and therefore rein in inflation, I do not know. They know some businesses will need to close and job losses will occur. If the government gives people monetary handouts, then people will only spend it and then inflation continues to rise. It is a juggling act not helped by past government policy for which the Reserve Bank has a narrow path to avoid a recession.

khal123
  • 12th Jul 2024 08:12pm
One major issue I see from years of the Liberal Federal Government was that wages were stagnant or going backwards. There were no gradual and necessary wage increases to up with inflation and keep...

I agree with you, it's deeply problem assclated gradually adding adding until reach this point. It needs compined and collective solutions.

Kuna
  • 3rd Jul 2024 03:11pm

Ultimately as long as the main (or even only) goal of all business is to Make More Money regardless of the humane cost I think things are going to broadly trend towards being worse for all of us little people, particularly financially but of course that has knock-on effects as having little money makes life more stressful in many ways, reduces the quality of life you can lead, stops you from being able to go places or participate in many recreational activities - without money you can't buy a book, a video game, go see a movie, eat at a restaurant, travel, any of these things.

A small number of people (particularly those politicians! the majority of them are at least landlords...) need to decide to prioritise the wellbeing of society over their numbers in their bank account going up, which means they need to be put under some kind of pressure to do so. Generally we apply this pressure by voting in particular ways, since Australians fortunately have a preferential voting system we can express our preferences without endangering the actual outcome like many other countries, particularly America :)

However you can also exert this influence in other ways! Writing and sharing articles you agree with on the subject, participate in protests in your area if they are safe and feasible to attend, generally raising your voice. Politicians and businessmen do read news and opinions, in fact many of them have people specifically hired to watch and read about the general population's opinions on them and their interests and summarise it for them, so they know which way the wind is blowing, so to speak.

In the short term it can also be helpful to seek out and either help out with or ask for help from local community organisations. They can be hard to find, a good resource is to find one place, often a library or sometimes just a community centre, and ask people there what organisations exist in your area that work in certain fields. You can find cheaper food, clothing, education, mental and physical health services hidden all around. In the absence of support from higher up, we have to support each other!

khal123
  • 3rd Jul 2024 07:54pm
Ultimately as long as the main (or even only) goal of all business is to Make More Money regardless of the humane cost I think things are going to broadly trend towards being worse for all of us...

Yes Kuna. I agree with you, people themselves they must help and support each other, it's our responsibility.

Anonymous
  • 1st Jul 2024 07:04pm

Raising interest rates is not helping inflation and is leading to a recession. There should be direct measures to ease cost of living pressures such as free transport for those in the workforce who have to commute daily and who pay taxes.

khal123
  • 3rd Jul 2024 07:57pm

I think interest rates is the main factor for this problem .

khal123
  • 3rd Jun 2024 09:41pm

Share your ideas guys please so we enrich the conversation

jtmorri
  • 12th Jul 2024 12:38pm
Share your ideas guys please so we enrich the conversation

I think for younger people it isn't a good time to have debt like a home loan because the interest rate is out of control.

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