Throughout this year we have witnessed numerous articles in The AFR and The Australian warning of a wage-price spiral in Australia (for example, see here, here and here).
From the outset I have argued that that there is no ‘wage-price spiral’ building, nor is it even possible in Australia. This is because centralised wage fixing ended decades ago. And the power imbalance against workers is simply too great.
Moreover, if economists, the media, business lobbies and the RBA are so worried about domestic inflation, they should go after businesses that continually jack up prices to juice their profits (e.g. the energy cartel).
