Here is Captain Phil’s take on inflation last night:
The high inflation of the 1970s and 1980s damaged the Australian economy and hurt our living standards. It made it harder for businesses to plan and invest. And Australians had to devote their time and energy to protecting themselves as best they could against the ravages of inflation. The high inflation undermined our prosperity; it eroded people’s savings, distorted resource allocation and increased inequality in our society. This experience also put paid to the idea that by allowing more inflation, we could have more growth and jobs. Rather, the reverse was true. High inflation meant lower growth, fewer jobs and lower real wages.
Really? That’s not what the data says. In fact, it says the opposite, that inflation dramatically lifted living standards:
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