RaymondPierreL3<p>Unfortunately, apart from some notable exceptions, most economists and bankers are still inthralled with neoliberal economic theory and one of its dogma, namely that full employment cause prices to rise and drive inflation. In his latest article, <a href="https://aus.social/tags/GregJericho" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>GregJericho</span></a> laments the fact. Whereas the <a href="https://aus.social/tags/RBA" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>RBA</span></a> has been focussing on the inflation rate it is charged with keeping under control (within a totally arbitrary 2 to 3% band), now that this has been achieved, it has fallen back into ‘largely unregulated market-driven economics’ and wanting more unemployment. </p><p>“Suddenly the RBA has rediscovered that it is supposed to also care about full employment. That might seem good for those looking for work, but unfortunately, the bank view of full employment is that we need more people unemployed. For you see, the RBA continues to obsess about a “tight labour market”. It does this because it believes unemployment of about 4% will probably cause wages to rise and then prices will follow. You would think after nearly three years of being wrong, the bank might start to question its economics. But no.”</p><p>The RBA is unlikely to change ‘religion’ anytime soon given that <a href="https://aus.social/tags/neoliberalism" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>neoliberalism</span></a> is the <a href="https://aus.social/tags/creed" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>creed</span></a> of both sides of politics in Australia. The issue now is what will the RBA do to ensure higher unemployment — bugger the poor sods who cannot find a job, but the credo says they must bear it for the good o the economy — Australia, my friends is ‘beige’ like the rest of the miserable politics around the globe. Is it any wonder <a href="https://aus.social/tags/Fascism" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Fascism</span></a> is on the rise?</p><p>Read more: <a href="https://www.theguardian.com/business/grogonomics/2025/may/22/rba-inflation-interest-rates-cut-full-employment" rel="nofollow noopener noreferrer" translate="no" target="_blank"><span class="invisible">https://www.</span><span class="ellipsis">theguardian.com/business/grogo</span><span class="invisible">nomics/2025/may/22/rba-inflation-interest-rates-cut-full-employment</span></a>?</p>