The Albanese government really is clueless as far as putting the brakes on inflation and giving Australian mortgage holders any hope at all in the short term of relief from interest rate pain.
The only way to genuinely rein in inflation is to make people save more and spend less. Obviously, that's not a trend that is going to be good for the Australian economy over an extended period of time.
But it should be viewed by Albanese, treasurer Jim Chalmers and every economist in the land as a very logical solution to stop the raging bull of hyperinflation.
While it only seems fair that wages and salaries be increased to match "real inflation", meaning to keep up with retail and service provider costs which are well above the "official inflation rate", fairness here doesn't equate to the solution. The conundrum is that wage equity right now is fueling inflation even more.
So what's the solution? Well, it seems that the Albanese government and the Reserve Bank haven't really found it yet. They appear to be like a black opal fossicker at Lightning Ridge trying to find that elusive gemstone.
Until they find one to properly rein in inflation, the best option, without calling it a solution, is for Australians to tighten their spending and to view nest eggs and term deposits as being the silver lining to a not so favourable situation, for the time being.
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