Finally someone in the RBA has got the balls to say that workers have been screwed by companies cost cutting and this governments relentless attack on workers wages and conditions. You may think this is a nothing statement but how often have you heard a politically appointed person tell the truth.
Who would have thought that taking money off the biggest gdp drivers in the country (Workers) would affect the economy. Well me for one and Ive been saying this for a long time.
There is only one economy, thePEOPLE. If they dont spend then companies dont sell.
What does this say about the treasurers relentless attack on workers wages and the treasurers and PM's relentless drive to cut big corporations tax.
Cost cutting hurting workers, and the economy, Reserve Bank says
By business reporter
Carrington Clarke
Updated 33 minutes ago
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MAP: Australia
The Reserve Bank says relentless cost cutting by businesses has kept wage growth at record lows and stifled the economy.
In a speech to the Australian Business Economists annual dinner, Reserve Bank governor Philip Lowe said low wages growth was now a "distinguishing feature" of the Australian economy and at the heart of many of the problems the RBA was currently grappling with, including a boom in house prices and dangerous, record debt levels.
"Low growth in wages means low inflation, which means low interest rates, which means high asset valuations," Mr Lowe said.
And he said blame lies, in part, at the door of business and its "laser-like focus on containing costs", which has seen workers lose out.
