Corporate profits

RBA again fails to recognize record corporate profits

Greens Treasury spokesman Senator Nick McKim today responded to RBA Governor Philip Lowe’s speech in which he again failed to acknowledge the role of corporate profits in driving the ‘inflation.

“Yesterday’s national accounts showed that the share of profits in national income hit a new high and the share of wages in national income hit a new high.”

“In the 60 years that records have been kept, never have workers gotten a smaller slice of the pie, and never have business owners gotten a bigger slice of the pie.”

“We are in a profit-price spiral, not a wage-price spiral.”

“Inflation started with global supply shocks, but is being driven by corporate profits”

“But, again, Philip Lowe didn’t acknowledge that.”

“Nor did he recant his statements asking workers to prepare for a further drop in real wages.”

“And he’s raising interest rates even though the preconditions he set for that to happen before 2024 haven’t been met.”

“That’s why Dr. Lowe has to go.”

“The job of the Governor of the RBA is to ensure the economic prosperity and well-being of the Australian people.”

“The RBA Governor shouldn’t be a corporate stooge.”

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