1970s Inflationary Spiral?

The governor of the reserve bank told the ABC last night that Australia will have a headline inflation rate of 7% by December. This morning the Fair Work Commission says 5.2pc increase ‘protects real value of wages’. How is that possible when inflation is running at a higher rate than the minimum wage? The new labor government suggested 5.1 per cent increase.

ACTU Secretary Sally McManus says supermarket, fast food, aged care, disability support and home care employees as examples of worker groups who are often paid at or close to minimum wage. Yet it was these workers who bore the brunt of Covid.

Meanwhile stock markets are crashing around the world. The Australian sharemarket ASX fell 4% yesterday following a crash on Wall Street. There is talk of a recession.

Workers of all Countries Unite!

Ian Curr
15 June 2022

Stories

Here is the story just released by the ABC:

Minimum wage announcement live: Fair Work Commission says 5.2pc increase ‘protects real value of wages’ for Australia’s lowest paid workers

https://www.abc.net.au/news/2022-06-14/asx-wallstreet-markets-commodities-currencies-rates/101149422?utm_campaign=abc_news_web&utm_content=link&utm_medium=content_shared&utm_source=abc_news_web

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