Blah blah blah government is to blame for increasing GST and hurting families struggling to put food on the table. This is coming out constantly. It is a load of crud.
GST went up, and income taxes were cut by an amount that implied that pretty much EVERYONE had greater real disposable income following both changes (benefits and super were adjusted as well remember). So don’t pull this line.
And also, all this talk about prices rising rapidly … well the CPI rose 0.8% in the quarter, almost all the result of a spike in petrol prices (on unrest in the Middle East and North Africa) and a spike in food prices (on the back of droughts and floods overseas). Prices across a whole range on retail products actually fell during the quarter – such as clothing and footwear.
Also, lets not forget that both parties arbitrarily want the exchange rate lower – remember that a lower exchange rate increases the price of imported goods. This is something that will make it harder for families to put food on the table and make it more difficult for mum and dad to pay for a new school uniform for the kids. The high exchange rate (due to high food prices, when we sell a lot of food overseas) helps to take some of the gains from high export prices and pass them on to other households in society – don’t forget this, as politicians and exporters seem determined to hide this fact from the public.
If we genuinely think incomes are too low for the poorest households, increase the benefit/minimum income provided by government as a transfer to these households. Stop this political bullsh*t that misinforms people regarding the true impact of other, completely unrelated, policy changes.
Note: My apologises for the lack of updates from us at the moment – things are extremely busy. There are a few posts I HAVE to write – hopefully I can write them over Easter and get them up afterwards.