Today the Reserve Bank Governor confirmed “Wages growth is subdued and is expected to remain at around its current rate for some time yet”.
This echoes last week’s comments from the Reserve Bank that low wages growth under the Liberals and Nationals is now the “new normal”.
Record low interest rates, downgrades to growth forecasts and talk of unconventional monetary policy by the Reserve Bank have not been enough to shake the Morrison Government out of its complacency on the economy.
The Liberals have dithered and delayed in the face of persistently weak economic growth.
Interest rates have been cut three times since the election to be just one quarter of what they were during the depths of the Global Financial Crisis, and yet the Morrison Government continues to leave all the heavy lifting to the Reserve Bank.
Despite growing concern that further interest rates cuts are losing their effectiveness, Scott Morrison and Josh Frydenberg have refused to lift a finger to support struggling workers and pensioners.
Scott Morrison and Josh Frydenberg have a political strategy but no comprehensive economic plan to get wages and the economy growing strongly enough.