They never learn. They never learn.
Safely ensconced in his comfortable, airconditioned and security protected office in Martin Place, RBA Governor Phil Lowe has climbed up onto his box to lecture Australian business. The source of his knowledge on and of business being unclear given he has never worked in business and probably considers business as nothing more than a transmission mechanism for his games of price and exchange rate manipulation through monetary policy.
As borrowing rates were lowered, Dr Lowe hoped that businesses would take advantage of the extraordinary conditions.
“It is important that we guard against becoming too risk averse,” he said.
“I understand that in an uncertain world, it can be hard to take on risk and there can be a natural tendency to avoid new risks.”
“But, if businesses are to seize the opportunities that are out there to grow and to increase Australia’s productive capital base, some degree of risk taking is necessary,” he said.
So how much of your $1 million plus salary do you Governor Lowe propose to put at risk with a link to unemployment, GDP and other performance indicators?
At the moment, your salary, your superannuation and your employment are entirely guaranteed (at no risk to you) by the tax payer and businesses you are lecturing on risk. You’re not talking any risk Governor. Go on. Take some. We dare you.
Come on. Take your own medicine. How about putting 80% of your generous salary and 100% of your superannuation at risk – you know so that you aren’t “becoming too risk averse“.