A lot of bad, poorly thought out ideas is this topic,

So to curb inflation we should raise tariffs, ripping off consumers by forcing them to pay more (raising prices) for inefficiently produced goods that they could buy cheaper elsewhere?

Everyone in Australia benefits from free trade because we can buy the most efficiently produced goods on the world market without price distortion. Prices without tariffs will always be cheaper than prices with tariffs. Tariffs are a inequitable tax on consumption that distorts competition both directly and indirectly makes everything we buy more expensive than it should be.

The global economy is working on a scale larger than it ever has. Hundreds of millions of Chinese and Indians have been lifted out of poverty and are earning higher real wages through export oriented enterprise, just like millions of Japanese and Koreans before them who now enjoy first-world living standards from the poverty of World War.

Wage rises not linked to productivity gains will cause inflation as the nominal value of money paid to produce goods no longer represents the same value of goods produced as it previously did. Inflation corrects the distortion caused by wage rises unlinked to productivity gains by restoring nominal prices to their real value. The RBA uses inflation targeted monetary policy to increase the cost, and hence decrease the excessive supply of money that has expanded quicker than real economic growth, lowering excessive inflation by increasing interest rates.

The increase in world demand for resources, and hence their increase in scarcity and value has been far more beneficial to Australia than costly. Haven't you heard of the mining boom? Australia is making huge returns on our natural resources and at the same time investing in the expansion of global productive capacity that will result in cheaper goods for all consumers and higher global living standards.

All working Australians get a superannuation top up on their wages that is being invested into the world economy. Every workers superannuation fund is enjoying the returns of the global economy and getting wealthier off it. The "greedy corporations" are only greedy because there trying to get the best return for your super fund. Australian institutional investors dominate equity markets, not a domestic elite.

Not all workers win in the short term as they face global competition, unskilled labour in Australia can't compete with unskilled Chinese or Indian labour because it offers nothing more at a higher cost. Education and upskilling into industries that are internationally competitive (trade specialization) is the answer, and one that Australia has succeeded in. Unemployment is the lowest rates in decades, and wages continue to grow in real terms, where's the better solution?

Property prices are high because demand has outstripped supply. Councils need to allow developers to build the maximum amount of housing in the minimum amount of space. Our capital cities need medium and high density development to increase the supply of housing to satisfy demand. I can't see how individual developers could corner the housing market, how can they exert enough market power to prevent development that increases supply? A more visionary approach would be to realize that Australia needs more cities, and to plan and encourage their development.

Predatory pricing is illegal, as is price fixing. Woolies and Coles have been prosecuted when they have conducted anti-competitive behaviour. Maybe the ACCC should go harder on them, but you don't combat one form of market distortion (collusion) and add to it another (tariffs), both just rip off consumers.

Tristan, you make some very good and well thought out points. My only criticism is that you appear to be firmly tied to the apron strings of the Global economy and the growth of cheaply manufactured goods that are little better than useless toys for those who can afford them, or those who falsely believe that there will be no day of reckoning in relation to their credit card debt.

Because of all the unnecessary crap that gullible people continue to buy, the debt of individuals continues to outweigh the wealth created by the mining boom and the Global economy.

I would also strongly dispute your sentiment concerning "greedy corporations" simply attempting to make our superannuation work better for us in our retirement. Corporations exist for the same reason as any other business.........to make more and more money, which in turn amounts to more money for investors and corporate executives. Almost every day we see newspaper reports concerning the obscene amount these corporate heads receive in renumeration, sometimes for a job very poorly done.

Something is very wrong when corporate heads are raking in a yearly salary that far eclipses that of our Prime Minister, useless as he is!

Tristan one point you have not addressed is that with a world with limited energy/resources;as the great masses of China and India use more so will prices rise dramatically.This means that our living standards will fall.Cheap energy underpins our living standards.There will be winners and losers with more globalisation but for already developed nations,we will have more losers.

My solution is to selectively impose tarrifs to keep industry here.Our balance of payments deficit is almost $120,000.per working family and growing even with record sales of our resources.We seem to be the sacrifical lambs in lowering tarrifs in areas no one else dares tread.There is no method in our madness since we have bared our bellies for no gain.China would not dare do what we have embarked upon.It has all been too premature.

Curses Arjay, CURSES! You sprung my "Tristan trap" prematurely. I was awaiting Tristan's reply before asking the question..... What about the end of cheap energy?

Those proponents of Globalisation and an ever expanding economy appear to be blinded by greed to the fact that very soon their corporate World will come crashing down around their ears. The levels of debt in this country alone is staggering and the "quarry" mentality of our National leaders is equally staggering. Once they realise that cheap and abundant energy has gone forever, those with the "growth at all costs" mentality will see the folly of their belief in the false God of "money and perpetual growth."

Our leaders should be fighting tooth and nail to keep manufacturing viable in this country, although I believe it's too late to introduce penalties for companies who go "off shore." Most of the companies left in Australia are foreign owned anyway, so they can simply thumb their noses at our Government and close the door on their way out!

Of course, none of this helps the battler who struggles against the price rise of everything from groceries and fuel, to the price of housing and education. It's the battler who bears the brunt of this madness called Globalisation. And yet, I feel that even they will have their day in the sun. Battlers are practical people and it's they who will survive once energy is no longer freely available.