Correct. Consumers never create inflation. Inflation is created by the governments when they deficit spend. The central bank creates money to fund that deficit. Remember inflation is not rising prices but the expansion of the money supply. Prices, including wages rise as the consequence of inflation to balance the supply and demand.
@gore1089
3 ай бұрын
You are right. Gov and the RB created it. Rates kept at zero, that drove up home prices. 1.4 trillion borrowed during the pan, that's now costing us $100 mill a day on interest alone. That's 200 homes a day, housing 220,000 people a year and the reason this gov can't do a thing without making inflation worse. Even if there was money to spend. What a mess.
@MrAnderson3
3 ай бұрын
Mark you should really have on Leith van Onselen, an Aussie economist. He could seriously break down Australia's fiscal condition at the moment he would be an awesome guest
@Jagger8333
3 ай бұрын
Is anyone else actually sick of the tax situation we have in this country? Income Tax, Stamp Duty, GST, Land Tax, Medicare Levy, Capital Gains Tax. Tax Tax Tax. When will it ever end and were is it going exactly? I did the calcs for my parents, they were hard working, self funded retirees who made additional Super contributions where they could and they are essentially just as well off as those individuals on the pension. It is a total joke. Oh that's a good idea, lets punish those who are having a REAL GO and pass it onto the dole bludger's who contribute absolutely nothing to society. I am over it.
@Michealfarmer
3 ай бұрын
Australia note. Annually, the CPI rose 3.6 per cent, with Housing (+4.9 per cent), Food and non-alcoholic beverages (+3.8 per cent), and Alcohol and tobacco (+6.3 per cent) contributing the most. Underlying inflation measures reduce the impact of irregular or temporary price changes in the CPI.
@randomstuff9322
3 ай бұрын
Consumers do cause inflation, if they didn’t, most things would go up at the same rate, but they don’t.
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