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Australian Economics

DavidSSS

Tiger Legend
Dec 11, 2017
10,525
17,881
Melbourne
The Australia Institute poured a bucket on the notion that we all have to be wary about some illusory wage/price spiral.

It isn't wages which are causing price rises, its profits.

A couple of choice quotes:

“We’ve been told a story that workers need to restrict wage growth and accept a permanent reduction in living standards in order to fix inflation,” he said.

“This evidence shows that’s an economic fairytale.

“ABS data shows that without excess price hikes through the pandemic, inflation would likely be within the RBA target band, and hence there would be no need for the nine extreme, back-to-back interest rate rises that are crushing households and mortgage holders, fuelling the cost of living crisis.”

Quotes were in a Guardian article: https://www.theguardian.com/busines...-company-profits-and-not-wages-analysis-finds

Raising interest rates is not going to stop the profiteering.

The biggest issue is that neither major party is actually willing to use fiscal policy to do anything about inflation. They are happy for the Reserve Bank to keep raising interest rates, which will basically benefit the banks, to restrict demand when there are alternatives. Keynes suggested compulsory saving so you get the funds back when the economy is tanking, which would benefit wage earners and reduce demand. Other alternatives include higher taxes on those who are not impacted by higher interest rates, and there are more policies which could be tried.

DS
 
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tigertim

something funny is written here
Mar 6, 2004
29,896
12,166
The Australia Institute poured a bucket on the notion that we all have to be wary about some illusory wage/price spiral.

It isn't wages which are causing price rises, its profits.

A couple of choice quotes:



Quotes were in a Guardian article: https://www.theguardian.com/busines...-company-profits-and-not-wages-analysis-finds

Raising interest rates is not going to stop the profiteering.

The biggest issue is that neither major party is actually willing to use fiscal policy to do anything about inflation. They are happy for the Reserve Bank to keep raising interest rates, which will basically benefit the banks, to restrict demand when there are alternatives. Keynes suggested compulsory saving so you get the funds back when the economy is tanking, which would benefit wage earners and reduce demand. Other alternatives include higher taxes on those who are not impacted by higher interest rates, and there are more policies which could be tried.

DS
I heard a guy on the radio saying that increasing interest rates wasn’t the best way to tackle rising inflation because it only targets those with a mortgage (35%) but he was with some real estate organisation so shock horror.
 

Redford

Tiger Legend
Dec 18, 2002
34,361
26,213
Tel Aviv
Lucky we’ve got Alan Joyce and Qantas propping the country up. $1.4 billion dollar underlying half year profit. Tripled revenue for 6 months.

Well done Joyce. Price gouging Australians and making more than $800 million dollars worth of flight credits basically unusable as well, and then having the temerity to say you offer “value”.

**** off Joyce you ****.
 
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DavidSSS

Tiger Legend
Dec 11, 2017
10,525
17,881
Melbourne
Lucky we’ve got Alan Joyce and Qantas propping the country up. $1.4 billion dollar underlying half year profit. Tripled revenue for 6 months.

Well done Joyce. Price gouging Australians and making more than $800 million dollars worth of flight credits basically unusable as well, and then having the temerity to say you offer “value”.

**** off Joyce you ****.

Gee, imagine if all that profit came back to us all, oh, wait a minute, it used to do that and then some idiot sold it off.

DS
 
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Redford

Tiger Legend
Dec 18, 2002
34,361
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Gee, imagine if all that profit came back to us all, oh, wait a minute, it used to do that and then some idiot sold it off.

DS
Pretty ironic isn’t it DS when you consider how much the Federal Gov has subsidised this airline over the decades…..
 
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RoarEmotion

Tiger Champion
Aug 20, 2005
4,944
6,455
Gee, imagine if all that profit came back to us all, oh, wait a minute, it used to do that and then some idiot sold it off.

DS
Plenty of other governments took a material equity position for bankrolling the airlines or forced them to pay the money back eventually

Seems outrageous we don't do the same with taxpayer money.

Loans
Equity
Hybrid
Give it away (subsidies)

Other countries seem pretty small handouts on the subsidies compared to this...

I fully get you don't want air travel to disappear : It would be a massive destruction of much of the economy.
But how do you give away tax money for free with no strings or payback is just outrageous.
 
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DavidSSS

Tiger Legend
Dec 11, 2017
10,525
17,881
Melbourne
Plenty of other governments took a material equity position for bankrolling the airlines or forced them to pay the money back eventually

Seems outrageous we don't do the same with taxpayer money.

Loans
Equity
Hybrid
Give it away (subsidies)

Other countries seem pretty small handouts on the subsidies compared to this...

I fully get you don't want air travel to disappear : It would be a massive destruction of much of the economy.
But how do you give away tax money for free with no strings or payback is just outrageous.

P!sses me off no end.

Fine, give them a subsidy, but then the government should own the equivalent in shares in the company, and at a discount.

DS
 
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Redford

Tiger Legend
Dec 18, 2002
34,361
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Tel Aviv
Qantas have already said they won’t be paying back the oodles of money they got from the Government during Covid. What they have said however, is that they are quite within their rights to fleece the Australian public both during and post of Covid. Like they’re sort of doing us all a favour ?

Quite outrageous when you consider that on top of the aforementioned, the Government has, for decades protected Qantas from competition by handing out endless subsidies and benefits like preferential landing rights and such.

If Qantas was a genuine stand alone business it would have gone under years ago. But hey Alan, let’s forget all that and just flog Australians hey ?

Ahole CEO. Ahole company.
 
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Scoop

Tiger Legend
Dec 8, 2004
24,932
13,973
Won’t fly them for all of the above reasons. And service is appalling. Very quickly becoming a hated brand in the community.
 
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Redford

Tiger Legend
Dec 18, 2002
34,361
26,213
Tel Aviv
Won’t fly them for all of the above reasons. And service is appalling. Very quickly becoming a hated brand in the community.
Indeed. I now fly Air NZ overseas when it’s reasonable to do so.

And that’s coming from someone who’s been a Platinum and Gold member with Qantas for most of my life.

Qantas sucks.
 

TigerMasochist

Walks softly carries a big stick.
Jul 13, 2003
25,573
11,449
. Keynes suggested compulsory saving so you get the funds back when the economy is tanking, which would benefit wage earners and reduce demand.

DS
Isn't this exactly what our Super is? Our savings that Scumo allowed us to access if needed during covid which thoroughly outraged Labor n the Super funds to the point where Elbows Knees n Charming are now gunna change the rules so that we can never access more than a dribble of some of our money after we retire?
 

Baloo

Delisted Free Agent
Nov 8, 2005
44,116
18,926
Elbows Knees n Charming are now gunna change the rules so that we can never access more than a dribble of some of our money after we retire?

Source? Heard nothing about that. Only concrete thing I have heard is they are considering removing the Super tax concessions for any amount over 3million. You can still have over 3million in your Super, but the portion above will lose the tax breaks.
 
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TigerForce

Tiger Legend
Apr 26, 2004
70,748
21,669
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Biggest laughter in super was the guarantee rate that should've been a mandatory 15%+ by now.
 

TigerMasochist

Walks softly carries a big stick.
Jul 13, 2003
25,573
11,449
Source? Heard nothing about that. Only concrete thing I have heard is they are considering removing the Super tax concessions for any amount over 3million. You can still have over 3million in your Super, but the portion above will lose the tax breaks.
Liberal party n the Murdochracy where else. Just don't tell anyone though as Elbows Knees, Dr Charming n Jonestown are keeping everything secret until after the budget in May. It's supposed to be a special surprise, but them nasty buggers keep speculating n making outrageous accusations.
 

Baloo

Delisted Free Agent
Nov 8, 2005
44,116
18,926
Yet that's the stuff you and so many parrot. It's why we have the government we do.
 

The Big Richo

Tiger Champion
Aug 19, 2010
3,154
5,024
The home of Dusty
What got me the other day was when Joyce was asked if the massive profit meant they would stop gouging punters at holidays etc...

His reply was essentially, no way, hotels and ubers etc all do that as well. Effectively a travel cartel designed to fleece the punters.

Why do we have an ACCC if not to stop that sort of stuff?
 

Redford

Tiger Legend
Dec 18, 2002
34,361
26,213
Tel Aviv
Have you ever tried to use your FF points with those aholes ? It’s basically a con job. They make next to no flights available for you to use them on (unless you’re Platinum) and then if you can use them, it’s an absurd flight time and duration.

I’ve been Platinum and Gold in the past but I’m just Lifetime Silver now. Tried to use about 210,000 worth of points for some overseas flights to LA a few weeks ago but the only flights available were going via Hong Kong !!! and taking over 20 hours longer than standard.

They also regularly punt FF flyers off their booked flights and sell the seats to other passengers.

Apparently the ACCC has been asked to investigate the whole Qantas FF Program. Hopefully they do.
 
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The Big Richo

Tiger Champion
Aug 19, 2010
3,154
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The home of Dusty
Have you ever tried to use your FF points with those aholes ? It’s basically a con job.

No basically about it, it is a con job.

I was in the fortunate position for a long time of doing lots of flights that were paid for by work but I accrued the points. I can't imagine there would be many people who would ever be able to accrue more points than I was, and they were still very little value.

It's a scam and that's before you even get into the collision with credit cards companies to manipulate people into signing up for cards because of points.
 
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Redford

Tiger Legend
Dec 18, 2002
34,361
26,213
Tel Aviv
No basically about it, it is a con job.

I was in the fortunate position for a long time of doing lots of flights that were paid for by work but I accrued the points. I can't imagine there would be many people who would ever be able to accrue more points than I was, and they were still very little value.

It's a scam and that's before you even get into the collision with credit cards companies to manipulate people into signing up for cards because of points.
Yep. Same.