Interest rates – why the cuts debunk the Government’s narrative on how great and strong they have been on the economy, and what does this really mean for working people.
This week the Reserve Bank of Australia (RBA) decided to cut interest rates to an historic low of 1.25%. This is because economic growth is slowing, wages are flatlining and unemployment is rising.
This is a damning indictment on the Morrison Government who campaigned on their ability to deliver a strong economy.
There is no doubt that we are facing a wages crisis in Australia. When the Governor of the RBA – the body that ensures sound money and economic stability – thinks that wage inflation is too low, alarm bells should be ringing across the country.
The problem of flatlining wages isn’t a surprise to Australian workers. For years they have endured the pain of not being able to keep up with the costs of living – grocery bills, rising energy bills, childcare costs, medical expenses.
It’s only now that the RBA Governor and leading economic figures are taking notice. Economic growth has slowed dramatically, average wages have only grown by 2 percent over six years.
Cutting interest rates is not the silver bullet we need to strengthen the economy – we also need fair pay rises for working people.
We can win fair wage rises if we stick together. Join your union.