AAP Image/Lukas Coch
Wages aren’t driving higher inflation, so why do workers always seem to cop the blame?
On this episode of Dollars & Sense, Greg and Angus discuss why Coles is in court over its pricing, whether it’s time to panic with government debt set to hit $1 trillion, and the role of corporate profits in driving inflation.
This discussion was recorded on Wednesday 18 February 2026.
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Host: Greg Jericho, Chief Economist, the Australia Institute // @grogsgamut
Host: Angus Blackman, Executive Producer, the Australia Institute // @angusrb
Show notes:
As real wage growth falls again, Australian workers must feel the economy is rigged against them by Greg Jericho, Guardian Australia (February 2026)
Joseph Stiglitz on super profits, capital gains and why corporate tax is good for democracy, Follow the Money, the Australia Institute (February 2026)
Corporate profits increase inflation, the Australia Institute (December 2024)
Theme music: Blue Dot Sessions
We’d love to hear your feedback on this series, so send in your questions, comments or suggestions for future episodes to podcasts@australiainstitute.org.au.
In some excellent news, the Bureau of Statistics estimates that Australia’s unemployment rate remained at 4.1% in January. Before we go any further let’s just enjoy the current state of Australia’s labour market.
When banks make big profits media organisations love to cheer them on as though there are no losers form some of the biggest corporations in Australia making ever more money. But profits don’t come from thin air, they come from customers, they come from you.
The latest wages data shows the RBA is wrong to blame higher wages for rising inflation. Recently inflation was on the rise, and the Reserve Bank is worried about a tight labour market. But what does a tight labour market mean, and what does it have to do with inflation?
Perhaps the most screwed aspect of how the media covers economics and business is how profits and business expenses are written about as though they are glorious things with no losers, while wages growth is always a danger that actually will hurt customers.
