Inflation Signs.

JulieW · May 20, 2016

The powers that be seem to be pushing for inflation I think this is an early sign of inflation soon to arrive.

From the Melbourne Age:

Tens of thousands of construction workers will receive above-inflation pay rises under an imminent wage deal with Victorian builders and contractors.
The proposed agreement negotiated between Construction, Forestry, Mining and Energy Union and a group of major building companies locks in annual 5 per cent pay rises for up to 30,000 workers if adopted across the industry.
The generous pay rise of 15 per cent over three years has sparked concerns of an "unsustainable" cost blowout that could add hundreds of thousands of dollars to future Victorian infrastructure projects.
"In these times when jobs are tight and families face ever rising costs of living, the last thing Victoria can afford is unsustainable pay rises that will cost jobs and make the cost of living even more expensive," Opposition Industrial Relations Minister Robert Clark said.

Read more: http://www.theage.com.au/victoria/v...aking-deal-20160520-gp04um.html#ixzz49CZ2bpyU
Click to expand...

Shaddam IV · May 20, 2016

CFMEU will spend a lot of money on this election and will need that money replaced, hence the necessity to have it's Labor minions allow these increases to go through so that the union can recover the cost.

Shaddam IV · May 20, 2016

It must be especially galling for Anthony Albanese in Sydney to be fighting to retain his seat against the Greens knowing that the CFMEU is the Greens' largest political donor and that they are using that money to fight him. Shorten is owned and operated by the CFMEU and see Mr Albanese as a threat. it's a sad thing as Albanese is an excellent local member and a decent person.

errol43 · May 20, 2016

I wonder if Turnbull is getting any $$$ from Goldman Sachs and other banks?

Regards Errol 43

Shaddam IV · May 20, 2016

errol43 said:

I wonder if Turnbull is getting any $$$ from Goldman Sachs and other banks?

Regards Errol 43
Click to expand...

Mr Turnbull's motivations are opaque but it's probable that those that put him into his current position are the same entities that could not allow Mr Abbot to remain as PM due to his reluctance to allow said entities to set up a lucrative carbon dioxide derivatives "market".

Now what were you saying about Goldman Errol?

errol43 · May 20, 2016

Results not typical said:

errol43 said:

I wonder if Turnbull is getting any $$$ from Goldman Sachs and other banks?

Regards Errol 43
Click to expand...

Mr Turnbull's motivations are opaque but it's probable that those that put him into his current position are the same entities that could not allow Mr Abbot to remain as PM due to his reluctance to allow said entities to set up a lucrative carbon dioxide derivatives "market".

Now what were you saying about Goldman Errol?
Click to expand...

So its a done deal now?

Regards Errol 43

Stoic Phoenix · May 20, 2016

JulieW said:

The powers that be seem to be pushing for inflation I think this is an early sign of inflation soon to arrive.
Click to expand...

A PROPOSED agreement asking for above CPI? This has been happening for many moons so it seems you dont understand the basics of wage negotiations.
If you think this is an early sign of inflation you are deluding yourself.
The Age saying "proposed" suggests its not even at the NEGOTIATION stage.
Show me one union that does not come to the table asking for more than they know they will actually get.
Im surprised they are going in at 5%, most shoot for around 8%...perhaps this is the last round before they accept between 2.3 - 3%.
Nothing to see here and certainly not some shadowy "PTB".

Ipv6Ready · May 21, 2016

What do constructions workers make?
Though this article is more an opening gambit, if inflation is what government want pay increase for workers would result in that.

JulieW · May 21, 2016

This is the gruesome story of the great inflation of the 1970s, which began in late 1972 and didn't end until the early 1980s. In his book, "Stocks for the Long Run: A Guide for Long Term Growth" (1994), Professor Jeremy Sigel, called it "the greatest failure of American macroeconomic policy in the postwar period."

The great inflation was blamed on oil prices, currency speculators, greedy businessmen and avaricious union leaders. However, it is clear that monetary policies, which financed huge budget deficits and were supported by political leaders, were the cause. This mess was proof of what Milton Friedman said in "Money Mischief. Episodes in Monetary History" (1994): inflation is always "a monetary phenomenon."

http://www.investopedia.com/articles/economics/09/1970s-great-inflation.asp
Click to expand...

both stagnation and inflation can result from inappropriate macroeconomic policies. For example, central banks can cause inflation by allowing excessive growth of the money supply,[10] and the government can cause stagnation by excessive regulation of goods markets and labour markets.[11] Excessive growth of the money supply, taken to such an extreme that it must be reversed abruptly, can be a cause. Both types of explanations are offered in analyses of the global stagflation of the 1970s: it began with a huge rise in oil prices, but then continued as central banks used excessively stimulative monetary policy to counteract the resulting recession, causing a runaway price/wage spiral.

https://en.wikipedia.org/wiki/Stagflation
Click to expand...

By 1973, inflation in the UK was accelerating to over 20%. This was due to:

Rising wages, partly due to strength of unions
Inflationary budget of 1972.
Growth in credit and consumer spending
Oil price shock of 1973, leading to 70% increase in oil prices.

http://econ.economicshelp.org/2010/02/economy-of-1970s.html
Click to expand...

By early signs I mean that the large wage pushes were an element of the spiral which lead up and up. If oil starts rising from its current lows, the push for wage growth will start again.

Unless of course the unions are no longer effective, which is entirely possible. Australia had a rather stalinist approach to wage controls in the 70s.

Log in or Sign up

Inflation Signs.

JulieW Well-Known Member Silver Stacker

Shaddam IV Well-Known Member Silver Stacker

Shaddam IV Well-Known Member Silver Stacker

errol43 New Member Silver Stacker

Shaddam IV Well-Known Member Silver Stacker

errol43 New Member Silver Stacker

Stoic Phoenix Well-Known Member Silver Stacker

Ipv6Ready Well-Known Member Silver Stacker

JulieW Well-Known Member Silver Stacker

Share This Page

Log in or Sign up

Inflation Signs.

JulieW Well-Known Member Silver Stacker

Shaddam IV Well-Known Member Silver Stacker

Shaddam IV Well-Known Member Silver Stacker

errol43 New Member Silver Stacker

Shaddam IV Well-Known Member Silver Stacker

errol43 New Member Silver Stacker

Stoic Phoenix Well-Known Member Silver Stacker

Ipv6Ready Well-Known Member Silver Stacker

JulieW Well-Known Member Silver Stacker

Share This Page

Useful Searches