Tax reform needed to tackle inflation, not interest rate hikes

2022-11-04

Greens Treasury spokesperson, Senator Nick McKim, has responded to the release today by the RBA of their quarterly Statement of Monetary Policy.

“The RBA has today admitted that inflation is not happening because people are buying more things.”

“This is supported by ABS figures also out today showing that retail volumes grew only 0.2 per cent in the September Quarter.”

“The RBA states that retail inflation is ‘mainly driven by price increases rather than higher volumes’.”

“But having made this pertinent insight, in the next breath the RBA says that it needs to guard against possible wage claims that might arise because workers need more money to pay these higher prices.

“This circular logic reveals the extent to which the RBA has been captured by corporate interests.”

“The RBA is fear mongering about non-existent wage increases citing its dodgy business liaison program.”

“But businesses have complained about wages through the entire history of capitalism.”

“Instead of parroting the corporate lines, the RBA should be upfront about the limits of monetary policy in tackling the current bout of high inflation.”

“Increasing interest rates will bring down inflation only by smashing household incomes and this will most affect those who are already doing it tough.”

“The government needs to pull its finger out and engage in genuine tax reform.”

“The government should be taxing company super profits and unearned wealth, and funding cost-of-living relief for those that are most in need.”