OPINION: Treasurer Jim Chalmers needs to commit the government to the wage and budget restraint needed to reset the foundations for sustainable increases in Australian living standards.
that the current round of nominal wage rises needs to be “sustainable” – a wage-price spiral that unanchors inflation expectations will actually erode workers’ living standards and end up leaving real wages lower and interest rates higher.
In the age of sound-bite and talking-point politics, Dr Chalmers finds it hard to call on unions to restrain their wage demands now in order to get inflation back in the bottle and entrench a jobless rate close to 4 per cent. But the Treasury numbers on forecast inflation and wages growth can’t be ignored.in raising interest rates to contain inflation, Anthony Albanese should at least come in behind Dr Chalmers’ language.
The entitlement culture that has been inflated by the pandemic needs to be reined in, starting with out-of-control spending on disability services.
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