Stealing from the poor to give to the rich

The data above is from the United States. Real wages are rising for the first time in a long time which is as good a reason for the Deep State to get rid of a president as I have ever heard. Imagine letting workers earn more which is taking money right out of the hands of the people who run projects funded by the public sector.

Government spending is in part hiring the useless to do unproductive jobs plus creating programs that soak up billions of dollars supposedly to create jobs.

And keeping interest rates as low as possible is all part of the process. The role of interest rates is to allow the market to determine which projects are the most likely to have a positive return. Near-zero interest rates allow governments to compete physical capital away from private entrepreneurs at the lowest possible cost to Treasury. This was from the RBA Governor on the fifth of November: Statement by Philip Lowe, Governor: Monetary Policy Decision. There was a time a discussion such as this would cause a first year student to fail the course. Now it is the highest good sense in economic policy.

Wages growth remains subdued and is expected to remain at around its current rate for some time yet. A further gradual lift in wages growth would be a welcome development and is needed for inflation to be sustainably within the 2–3 per cent target range. Taken together, recent outcomes suggest that the Australian economy can sustain lower rates of unemployment and underemployment.

The virtue in having higher wages growth, you see, is so it might raise the inflation rate towards its target range. Not so that wage earners might earn a higher income, but so that inflation might rise which means that any wage increase projected will come without productivity growth. Otherwise, if productivity were also rising there would be no inflation.

Moronic doesn’t quite capture it.

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16 Responses to Stealing from the poor to give to the rich

  1. David Brewer says:

    Interesting figures. This is not of course the total wage bill, but the median earnings of workers in real terms. Only the employed count. This means that the figure tends to rise in a recession (c. 2009), because lower-paid workers get laid off first. The other time they rise is once there is full employment: labour becomes scarce so employers bid up wages (2015-2019). The big spike recently is unfortunately the Covid-induced recession, and the little drop at the end is actually a good sign that this is ending, and lower-paid workers starting to get jobs again.

  2. miltonf says:

    We’ve really gone back to the feudal era with serfs and lords of the manor. Lowe’s world is Phillip’s curves and the walrasian equilibrium. Never had a real job and always a tax leach. Worse than monks who argued over number of angles dancing on a pin head.

  3. mundi says:

    Australia has no hope economically.

    These are the standard beliefs right through both sides of politics, the general public and the RBA:

    -government spending makes our live better, because it increases a number called GDP

    -It is ideal if there is inflation of 2-3% because it makes us feel good to get more and therefore promotes the real driver of the economy: “consumer confidence” / “business confidence”

    -Government creates jobs

    -The public sector must increase pay too drive inflation up to keep the economy growing

    Australia is economically doomed. Once Labour/Greens return to power, they will regulate our primary industries out of existence, and the AUD will crash from having no useful exports and no future outlook.

    I don’t think we can even fix this because there is too many generations who have been told economic fairy tales their entire lives.

  4. duncanm says:

    David Brewer
    #3664074, posted on November 19, 2020 at 4:06 am
    The big spike recently is unfortunately the Covid-induced recession

    Exactly. CL has it arse about. The theft from the poor is not ending due to Trump. There is a worldwide theft to the money’d and power classes under the cover of Covid.

  5. duncanm says:

    Sorry – not CL – I meant Steve.

    Reading two posts at once before the morning coffee causes issues.

  6. Entropy says:

    COVID happened in 2020, not 2018 and 2019 when the spike occurred.

    Just thought I would point that out, laddies.

  7. duncanm says:

    Entropy – good point. I retract my criticism.

  8. EllenG says:

    It seems no amount of evidence will deter Kates from his dubious pursuits.

  9. Cassie of Sydney says:

    “It seems no amount of evidence will deter Kates from his dubious pursuits.”

    It seems no amount of evidence will deter “EllenG” from her (?) dubious comments.

  10. H B Bear says:

    Save to assume that graph couldn’t come from the former Commonwealth of Australia.

  11. H B Bear says:

    It would be interesting to see a chart of private v public sector real wages over the last 20 years for Australia. I have my suspicions of what is happening here.

  12. Matt says:

    H B Bear,

    yes I agree public versus private real wages in Australia would be very interesting.

  13. Spurgeon Monkfish III says:

    It would be interesting to see a chart of private v public sector real wages over the last 20 years

    Bear – see the graph in this piece from the Silly Moaning Hemorrhoid, compiled from ABS data.

    Last four years.

  14. H B Bear says:

    Sturgeon – thanks. Plenty of upside, no downside. Nice work if you can get (and pay for) it.

    A trillion reasons to think we can’t.

  15. Roger says:

    And still they wonder why 71m+ voted for Trump.

  16. Pyrmonter says:

    Re-cycling the Left’s memes about income distribution? 2002-2010, at least, the key is in ‘wage’ growth – the earnings growth was siphoned off to healthcare.

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