The cost of inflation shouldn’t be paid by those who live in genteel poverty

The majority of people in Australia did not contribute to inflation. It was caused by the rise in the price of oil, food and rental properties. Who gains from those price rises? The producers of oil are in pretty good shape, as are those that transport oil to its various destinations. On the other hand the producers of foodstuffs (yes, farmers) are paid even less while the middleman/woman capitalise with extraordinary prices charged. Then its the turn of the supermarkets and landlords and, in the case of rising interest rates, the banks. So, the majority of people, who are being penalised, are paying the price of being poor, or poorish (some call it genteel poverty). It has to be more than seventy percent of us if it’s about being hooked into a mortgage, or credit card debt.

If you do the sums slightly differently the 12-17 percent interest rates of PM Keating’s day equates to about the same now in John Howard’s day because the same house now costs five times as much as it did in Hawke’s day, and we borrowed that much more.

But why don’t those who are earning the huge amount of money during an inflation period pay the cost of inflation, afterall it really has nothing to do with the wage earner, and the wealthy are causing the inflation? The reason is that the wealthy don’t want to pay it and that’s why they lobby the government by paying huge amounts into election campaigns. Simple isn’t it? The rich, who caused inflation, don’t have to pay interest unless their entrepreneurial lust has taken them into huge gambles on the price of water.

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