ANALYSIS: Consumers and businesses are on strike and that's dragging the economy down
Getting wages growth back near average requires the unemployment rate to fall .
"It is clear that any boost to disposable income in the quarter from the rebate and lower mortgage payments was saved, effectively paying down debt faster if done so in an offset account rather than spent," RBC strategist Robert Thompson noted. Higher earners are the biggest beneficiaries of the Government's tax cuts, but lower income households may pay through reduced public services if Treasury's forecasts prove too optimistic.
Dr Stanford argues the federal government, rather perversely, has actually encouraged this counter-productive reaction, with both the size of its tax cut, and its design.
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