Aussies are being urged to stop splashing cash on “Netflix, flat-whites, movies and eating out” to trigger a “DIY recession” that will save us from years of pain.
The extraordinary call from Rand Low, an Associate Professor of Quantitative Finance at Bond University , comes amid resurgent inflation in Australia ,Dr Low argues everyday Australia ns need to cut back on “ discretionary spending ” so that we can collectively drive the nation into a recession — one that he claims would be “short-lived”.
He said this is because non-discretionary spending and inflation is likely rise up due to the cost of subsistence goods going up.“This is due to the on-going wars in the Middle East and in Europe,” he said. “It affects our supply chains, our cost of petrol, etc.” “We also see that locally in Queensland and Australia, unions have been asking for wage increases across the board from construction, healthcare, education etc. to deal with the rising cost of living,” he said. “This will have a flow-on effect on professional white-collar jobs that will expect a similar increase in wages.“Wage increases are acceptable as long as there is a corresponding increase in productivity.
He said if that happens, Australia will suffer from a very severe recession that may take many years for us to get out of. “We can’t avoid expenses like shelter, utilities, food, etc but we most probably can delay purchases of some electronics and eating out.”
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