Breach after Breach...

I was sure that the RBA was going to lower rates until our Treasurer returned from overseas declaring that low rates don’t help the economy. This is despite the facts that show low rates in the UK and America reversed their high unemployment where they are now sitting way, way below Australia.

In contrast, our failed Treasurers have delivered high rates and have seen our unemployment go from 4 per cent to 10 per cent. This breaches the RBA charter on maintaining full employment and maintaining living standards in Australia. Like in Europe​ they are twiddling their thumbs watching the citizens burn.

We have had 4 years of wage rises below inflation. The tiny NET gains eaten up by increases in costs and of course the Keating curse on the economy, the waste of funds going from pay packets into superannuation.

This decision was a victory for treasury with the treasurer captive, but at the same time it is a death knell for Morrison who’s days as the treasurer must be numbered after his ill-fated retrospective legislation on superannuation and this maintaining of high rates.

Now watch the Australian Dollar soar along with our underemployment. Thank you Mr. Morrison.

Hear what other economists are saying about yesterday’s RBA Rate Decision.

Thanks,

Kevin Young Club Founder