Take a Paws

Originally posted by Justis ↑

The economy is complex, what is happening here is also happening around the world.

Industry demands higher immigration because of a trades/skills shortage, restricting immigration would only make matters worse.

Inflation is a result of supply and demand, suggesting that it's due to Foreign money flooding in with cash would suggest it's the demand side that is causing inflation. It's actually a shortage in supply that is driving prices up, ie people are being forced to pay more to get the limited supplies.

Business/Companies are also price gouging, they hiked there prices up due to the supply shortages and the massive shipping cost after covid but are not passing on all of the cost savings now that supply chain issues have eased and shipping cost have come down.

I know first hand on the supply chain issues and shipping cost, pre Covid sea freight for a 40ft container from Malaysia cost me $2k, after covid it got as high as $13k. I heard of importers that the cost of sea freight was higher that the value of goods they were importing.

My sea freight costs have come right down, my last sea freight cost was under $3k. Like most business I have not passed on the full savings I am getting people have got use to the higher cost so while they are prepared to pay I need not cut my prices.

The reserve bank aims for a target inflation rate of 2-3%, at that rate the economy is increasing at a steady rate but maintaining that is a balancing act. And there are trade off's, before inflation took off we had very low interest rates and while that was great for people with mortgages it was not good for retirees with cash in the bank. Now with higher interest rates retirees are doing better but it makes life more difficult for people with mortgages.

Then there is the foreign exchange rates when the $us is higher it's great for Australian exporter but not so good for Importers and when the $us is lower, it's great for importers but not so good for exporters.

So you see through all parts of the economic cycles there are winners and losers

All too often people blame government when the economy is not doing well and government will take credit when the economy is doing well. The reality is that the economy is controlled by the free market not the government, in fact government intervention in the markets is often detrimental hence why governments are reluctant to intervene

Also if I Have not already made it clear, Australia's economy doesn't operate in isolation. We are part of a global economy that mostly operates as a free market

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Yes, the economy is complex and our government has everything to do with the monetary policies that affect our economy but we are not the same or operate in the same way.

We are talking about the housing crisis here and what this govt is doing/done. Not addressing the fact that growing problem of builders going broke. This govt has flooded the country with immigration.

People do not get used to high prices at all, they shop around. I know I do.

If you think housing isn't suffering why are some councils now asking for help? Our Council has.
Charities are stretched and so are animal shelters because of rising vet fees and insurances. How many have had to abandon their pets because their rented home is being sold for higher prices?

So where do they go when they want help - the government. Government should be creating policies that create prosperity for their people. What they are doing is creating apathy and despair.

Taxation favours high prices as well so they really don't want it to stop or help people now do they?

It's an evil Ponzi scheme at best.