since the onset of the Covid-19 crisis. As the economy emerges more fully from the pandemic they should decrease, thereby moderating inflation. Yes, wages have been temporarily rising faster than in the pre-pandemic period but that is a good thing. There has been a huge secular increase in inequality, which the recent decrease in workers’ real wages has only made worse.
Consider, for example, that there are fewer Americans today than there were expected to be before the pandemic. Not only did Trump-era Covid-19 policies contribute to the loss of more than a million people in the US but immigration also declined, owing to new restrictions and a generally less welcoming, more xenophobic environment.
Let us return to the big policy question at hand. Will higher interest rates increase the supply of chips for cars, or the supply of oil ? Will they lower the price of food, other than by reducing global incomes so much that people pare their diets? Of course not. On the contrary, higher interest rates make it even more difficult to mobilise investments that could alleviate supply shortages.
Why does the Guardian push every story towards a racial element? Oh yes I forgot, everything is racist, even a recession
It's an essentials supply side problem isn't it. Raising rates at this time is like trying to play a Metallica guitar solo with boxing gloves on.
This was the same leftwing clown that praised Venezualas move to socialism. No surprise the fools at the guardian love him
We are so lucky Aussies are so easily brainwashed with lies and spin. The way Albo tricked them with his lies was awesome. We can always rely on Labor to look after the top end of town and ensure the rich get richer and the people poorer. 👍👍💰💰💰