Domestic data does not support the decision to raise interest rates. Being wrong in the right company (the market and conservative economists) might make for easier dinner parties and congratulatory op-eds in the financial pages, but it does nothing to look after the welfare – economic and otherwise – of the Australian people.
Inflation in August rose from 3.5% to 4.0%, which might make you think the RBA had a point in raising interest rates yesterday. The problem is that all of the increase was due to petrol prices.
The Reserve Bank should use Gross Domestic Regeneration to distinguish imported oil shocks from domestic inflation – and avoid compounding the damage.
On this episode of What’s the Point?, Richard Denniss explains the goods and services tax. The GST was supposed to grow over time, so that state and territory governments would have a reliable income source to help them fund the important services they provide long into the future. Richard looks into whether it is actually working as intended
Host: Richard Denniss, co-Chief Executive Officer, the Australia Institute //@richarddenniss
Host: Anna Chang, Managing Editor, The Point // @annachang
Show notes:
GST Shortfall | The Australia Institute
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 topodcasts@australiainstitute.org.au. Subscribe to What’s the Point? with Richard Denniss on YouTube, Apple Podcasts, Spotify or wherever you get your favourite podcasts.
