another nail in the coffin, page-6

Consider you set a 4-5% inflation target.

The general pay rise now is usually 2-3% especially the public sector which is australias biggest employer.

If you say let inflation go between 5-6% then unions and employees are going to want pay rises of 5-6%.

What do you think this would do to the govts budget?

What do you think will happen to employers if they have to double their wage increases every year...they will either have to lay people off or go broke.

If you didnt give people 5-6% pay rises but let inflation run that high we really would end up with a worse 2 tier class society, those with debt would be ok as the debt would get inflated away.
Those with no debt would fall further and further down the scale where they would struggle to pay rent etc