Reserve Bank governor, Philip Lowe, Speaking at an event in Adelaide, Philip Lowe said “very low” household income growth was the reason the economy had “softened”, which has prompted the RBA to reduce interest rates to a record low of 1.25%. Asked for his view on the role of income support levels, Lowe suggested an increase to the $277.85-a-week payment would help stimulate the economy, though it was “a matter for the government”. “Anything at the moment that can boost income growth is good for the economy,” he said. “So the interest rate cuts will boost household disposable income because people pay a lot of interest, and I hope the tax rebates get through the parliament and that will boost income. Australian interest rates head for 1% as emergency measures loom for economy Read more “And perhaps, in time, stronger support payments for unemployed people will help as well but that’s up to the government.
No shit Sherlock. If the government hadn't removed penalty rates maybe, just maybe, the economy would also be slightly better off. Giving themselves pay rises while reducing everyone else wage is not going to grow the economy. Why don't they understand that the trickle-down effect is not working?
Those with an excess at the top just end up saving the money. Its not going back into the economy. Looking after the big companies is not going to keep the economy afloat. We need income from the bottom up. Example: the worker getting paid that little extra means they can afford to go out for a coffee so the coffee shop owner can afford to go out for dinner. The machine keeps churning.
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