The Reserve Bank of Australia has held interest rates at a record low 2.5% for a year to buttress the economy against a mining slowdown, which has pushed unemployment higher over the past year.
What do these armchair economists think? Do they think the RBA should raise rates there by actually encouraging more offshore investment in the AUD? That will only strengthen the AUD and lead to higher costs for exporters, and potentially more pressure on what is left of our manufacturing industry.
Governments for years have not addressed the underlying problem in this country. WAGES and the associated costs of employment.
Everybody cries that if wages fall people won't be able to afford housing or food...what a crock. As demand falls so do prices...as base costs fall so do prices.
If the Government bit the bullet and seriously looked at the ridiculous loadings employer's have to pay employees, and this impost was reduced there would be more jobs.
State Governments have to look at the stupid idea that the more people you employ the more additional tax you pay in the form of payroll tax. Get rid of payroll tax, it stifles employment.
It isn't hard, it's just we have created the society we now deserve...
