RBA Governor Philip Lowe’s comments overnight have pointed out what Australians already know and what the Government doesn’t understand – that stagnant wages are slowing the economy.
The Governor could not have been clearer when he said that “over the past year, there has been no growth at all in consumption per person” because “household disposable income has been increasing only slowly for an extended period” and that wages growth “looks to have stalled recently.”
Rates are already at one third of the ‘emergency lows’ seen during the GFC and yet the Liberals still want to pretend everything is hunky dory in the economy.
The RBA is being forced to do all the heavy lifting to support our economy because the Morrison Government doesn’t have a plan to turn our economy around.
Right when the Australian economy needs action to boost the economy, Scott Morrison and Josh Frydenberg have a political strategy but not an economic policy.
The Liberals’ lack of an economic plan is leaving Australia dangerously exposed to turbulence in the global economy.