Wednesday, June 23, 2021

Bill Mitchell — Culture of austerity distorts business decision-making and we all lose

It is Wednesday and so a few snippets and some Afrobeat. Today, I briefly discuss a rather extraordinary claim by the Governor of the Reserve Bank of Australia that Australian employers refuse to pay higher wages in an environment where the federal government is biases aggregate policy towards surplus creation, even though that strategy was temporarily disabled during the first year of the pandemic. The overall austerity environment has distorted business decision-making to such an extent that firms are now obsessed with cost control and have forgotten that spending equals income and by encouraging a high wage, high productivity culture, their profits rise as well. Win-Win. At present it is lose-lose....
Bill Mitchell – billy blog
Culture of austerity distorts business decision-making and we all lose
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

2 comments:

Matt Franko said...

https://www.afr.com/policy/economy/white-houses-kevin-hassett-says-wage-growth-to-exceed-4pc-this-year-20190205-h1auyp

“ President Donald Trump's chief economist predicted wage growth in the US will accelerate past 4 per cent this year amid a strong labour market, more capital investment and rising productivity.
"What we're seeing is basically a really strong economy with solid wage growth that I think is going to improve this year," Kevin Hassett, chairman of the White House's Council of Economic Advisers”


Trump had it going in workers direction then you feckless lefty Art Degree losers didn’t support him because he put out mean tweets…

Matt Franko said...

So what is you leftys inner monologue on this?

“Well gee, I would really like to see some gains in labor share get going and trump has it going 3 to 4% annual with promises for more…. Buuuuttttt….. he puts out mean tweets so I can’t support him… and he uses tanning bronzer so “orange man bad”….

https://www.psychologytoday.com/us/basics/self-sabotage