Inflation and Government Actions: A Cause for Concern
    • 01 Nov, 2023

    Inflation and Government Actions: A Cause for Concern

    Inflation, a persistent economic concern, has taken on a new face recently. Many people feel it is no longer merely a consequence of market forces but rather a government-induced problem. The evidence for this assertion lies in the sharp increase in fees, charges, and taxes imposed by governments, resulting in a staggering 7.5% rise, surpassing the standard inflation rate by 2%. One notable contributor to this phenomenon is the government's periodic hike in petrol prices every 90 days, which ripples through the economy, inflating prices across the board.

    The call to action is clear - it's high time for state, local, and federal governments to tighten their belts and reconsider these escalating charges. The plea from concerned citizens is simple: no more increases in rates. This sentiment is driven by the belief that such increases only serve to boost bank profits and not the welfare of the general populace.

    Furthermore, if these rate hikes are intended to reduce consumer spending, then it's time to reassess. The reality is that retail spending has hit an all-time low, indicating that the strategy has achieved its intended purpose. Voters have conscientiously tightened their fiscal belts, curbing their expenditures, and the time has come for governments to follow suit by ending the relentless 7.5% tax hikes.

    One significant moment on the horizon is Melbourne Cup Day, and many are wondering whether the Reserve Bank of Australia (RBA) will make a move. This occasion presents a unique opportunity for the RBA to address the issue of government-induced inflation and gain widespread attention. It's a chance to set a new direction, one that aims to alleviate the financial burden faced by everyday Australians.

    The first step in this direction could be reducing cash flow misery, thereby providing much-needed relief to businesses and individuals struggling under the weight of rising costs. By addressing these concerns, the government and financial institutions can work together to tackle the root causes of inflation and bring much-needed stability to the economy. It's time to shift towards fiscal responsibility and a more consumer-friendly economic landscape.

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