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Reserve may face a surge in wages : Comments
By Henry Thornton, published 6/5/2008With an over-heated economy and powerful demand for labour, a wages surge would in times past be under way by now.
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The Reserve Bank must not only look at our Australian economy but take into consideration the inflationary pressures caused by factors outside the control of our country and it's leaders. This is a point Swanny and co are unable to comprehend as they continue to blame the current round of inflationary increases on the previous government while Howard and co had no control over the price of oil (supply curtailed by the gulf oil cartel) and food (due to drought) - BTW these are two things that Krudd promised to fix during the campaign but now has declared too hard.
The fact that the labor governments are not willing or unable to take on the pain of opposing unions for their economic myopic self serving desires will be the sinking of our economy. As Henry says, the AWAs were an excellent way to let the employers counter the union demand for inflationary wage increases while maintaining a high employment rate. Krudds team of not so brilliant conservative economic managers has certainly shown us where they stand. Now they have a turn at the economic helm to prove their mettle.
Hang on for a very bumpy ride ahead.