Posted to The Age (24/7/2013) on 24/7/2013 at 6:26 PM
Comment on "Carbon tax inflation fears evaporate"
http://www.theage.com.au/business/the-economy/carbon-tax-inflation-fears-evaporate-20130724-2qj4q.html
The sky has not fallen, but many roofs will and people will not have roofs over their heads. The set of data represents The Beauty and The Beast. This may lead to another rate cut during the next RBA meeting, but the carbon tax definitely causes the rise in prices for essential utilities not only affecting ordinary consumers, but also industries employing the workforce of Australia.
With rising running costs, Australian produced products will be less price competitive in the world market, and therefore less export to other countries and more imports from countries which can supply cheaper alternatives. To balance the companies' books, wages will have to be reduced, leading to staff cut and creating higher unemployment.
Tony Abbott was a bit over enthusiastic to predict the Armageddon too soon, but the carbon tax, speaking realistically, will bring much misery to those who do not have backup reserves to live on.
Comment on "Carbon tax inflation fears evaporate"
http://www.theage.com.au/business/the-economy/carbon-tax-inflation-fears-evaporate-20130724-2qj4q.html
The sky has not fallen, but many roofs will and people will not have roofs over their heads. The set of data represents The Beauty and The Beast. This may lead to another rate cut during the next RBA meeting, but the carbon tax definitely causes the rise in prices for essential utilities not only affecting ordinary consumers, but also industries employing the workforce of Australia.
With rising running costs, Australian produced products will be less price competitive in the world market, and therefore less export to other countries and more imports from countries which can supply cheaper alternatives. To balance the companies' books, wages will have to be reduced, leading to staff cut and creating higher unemployment.
Tony Abbott was a bit over enthusiastic to predict the Armageddon too soon, but the carbon tax, speaking realistically, will bring much misery to those who do not have backup reserves to live on.
