Comments by "" (@pwillis1589) on "Labor government continues to blame ‘overseas’ for inflation in Australia" video.

Keating did nothing of the sort. The RBA independent of government set the interest rate.
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Except the Labor government is in surplus. Certainly the price of oil and gas that increased significantly in the last 2 years has had an inflationary effect. The cost of housing both purchasing and renting is having an inflationary effect. It is most definitely not wage increases. That is total BS.
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@grantsapain You just argued against projection by quoting a projection, which is illogical nonsense. All budgets are projections. The previous government projected a deficit this financial year and yes near future budgets are projected to be deficits. The idea that government fiscal policy is solely responsible for inflation is absurd. Six years of Labor deficits and then eight years of LNP deficits inflation remained in the RBA target range of 2-3%. It was only after the pandemic recession and the war in Ukraine that inflation took off in the OECD. Governments aren’t blameless, neither are we the spending public.
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@grantsapain Oh yes you did. You claimed my assertion of a budget surplus was a projection (as if it won’t be) and then claimed projections into the future are deficits (as if they will be). As explained I understand all budgets are projections as they are estimated on multipule variables. So your claims of massive deficits are by your own admission just a guess. It is just a simple fact of data that the previous LNP government significantly added to the National debt as did the previous Labor government before it. Rudd/Gillard had a GFC recession to deal with, Morrison had a Pandemic recession to deal with, what Abbotts and Turnbulls excuse were for deficit budgets, fuck knows. Polling is not a indicator of economic data, it is most definitely an indicator of voting intention, but it doesn’t mean people understand how the economy works, only that they must confront the consequences of it.
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@grantsapain Again you imply that the current budget will not be a surplus. I claim it will definitely be, you seem uncertain. All you do then is agree with me about the cost of living being felt by consumers. The government has certainly provided direct assistance to people suffering severe financial stress, but it has also made significant cuts to federal spending on infrastructure, so your claim of “the only thing they are doing is relief payments is blatantly false.
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For the last 40 years at least both the government and the RBA has universally agreed inflation of 2-3% was ideal.
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@DASBotanicalGarden Ahhh the beauty of our democracy, differing opinions.
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@HereAdventures I’m not suggesting that government fiscal policy isn’t a factor, but the RBA tool is also a factor. A significant contributor to the ABS calculating the CPI is housing both purchasing and renting. Every time the RBA increases the interest rate the cost of housing increases and that reflects in the CPI. Just blaming the government is simplistic, inflation is a complicated business and needs a multi pronged approach.
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@HereAdventures While I agree with you on section 11 being maintained, Chalmers is as I understand it only following the recommendations of the RBAs review, by making the it truely independent. Question, since its inception how many times has a treasurer overruled the RBA board?
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That would make sense if the current government had a deficit budget but they are in surplus and have cut spending on infrastructure projects.
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@vancouver63-p5w GDP to debt in Australia is approximately 60% (happy to be fact checked on this) which is according to economists perfectly fine debt to income ratio. Household debt is 211%, thats you and that’s where the problem is. Not government spending, but individual spending.
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@vancouver63-p5w As explained earlier the problem is not government debt. The IMF has specifically said so. At 60% of GDP it is easily affordable. To insist otherwise is nonsensical unless you can provide some data to support your opinion. The government maintains a AAA credit rating. I obviously didn’t mean you personally as I haven’t got a clue about your personal situation and don’t care. As explained it is household debt at 211% that is the issue not government debt.
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@vancouver63-p5w Bingo, you hit the nail on the head. The Henry tax review and numerous economists have said the same thing for the last ten years. However governments and oppositions on both sides have been chicken shits to do this. Increase GST to 15% and drop the exceptions. Income tax relief for the lower and middle incomes to compensate for the increase in GST. Instead what are going to do next year? Give a massive tax cut to the rich. Unbelievably stupid.
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@user-im9ju4hx8s I'm all for any companies foreign or domestic paying their share of company tax on profits. Unfortunately this is a real headache as tax haven countries like Ireland, and the Cayman Islands really make it hard for us to police. Stinking oil companies are ripping us off blind. The price per oil barrel is back below pre pandemic and Ukraine war prices but this is not reflected at the pump. This isn't the government's fault it is oil companies price gouging and it part to the free market economy. Blame capitalism.
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