The Reserve Bank of Australia (RBA) wants more unemployment in Australia. This has been made clear by Philip Lowe and Michele Bullock in recent presentations to the financial sector. Australia, according to RBA economists, must have an unemployment rate of at least 4.5% (their definition of full employment) to put downward pressure on wage growth in the never ending fight against inflation. The current unemployment rate is around 3.6% and this means a further 140, 000 Australians need to lose their jobs. This economic state of affairs is no new thing, it has been the agreed setting for more than 50 years.
“The unemployment rate fell 0.1 percentage point to 3.6 per cent in May (seasonally adjusted), according to data released today by the Australian Bureau of Statistics (ABS).”
Australia Punishes Unemployed Financially As Sanctioned By The RBA
At the same time, governments and the Australian people punish those without a job by failing to adequately financially support them in unemployment. The Job Seeker rate is well below the poverty line, as defined by various leading economists and welfare groups. Anyone who has ever been on the dole in Australia over the last couple of decades would attest to this level of financial support being woefully inadequate to meet the challenges of being able to maintain yourself whilst actively seeking employment. Governments have defended this situation as a sort of ‘tough love’ designed to spur people on to get a job. Multiple ministers have talked about those on unemployment benefits not getting too comfortable via welfare.
RBA Sacrifices Australians To Unemployment
Meanwhile, the RBA has designed an economic blueprint for the Australian economy dependent upon 500, 000 Australians being out of work. This is what they classify as ‘full employment’ for the Australian economy. These 500, 000 are the sacrificial bodies and souls that must feed the great god Capitalism to make it work its magic upon our economy. The central bank priesthood intone from on high to governments and the people, ‘we must return inflation to the 2-3% band.’ Raising interest rates on the cash rate is the means by which these holy bean counters perform the machinations necessary to stifle demand. The economy slows and businesses shed employees. The Reserve Bank of Australia wants more unemployment in Australia.
The newly made redundant are then thrust upon the economic scrap heap, where they are punished for being unemployed. This is how the Australian economy functions, with the support of governments of both persuasions.
Quite obviously, to any reasonable observer this is a disgraceful state of affairs in a ‘so-called’ modern economy and civilised nation. However, successive governments have conveniently washed their hands of any responsibility for the state sanctioned suffering of these half a million Australians.
‘Oh, it is the economy, there is nothing we can do about it!’ Our central bank managed capitalist economy, apparently, stands free and above governments. This is just how things work and have always worked, according to those inside the tent pissing out.
In ancient times, those about to be sacrificed to the gods were, often, treated with extra kindness prior to their extermination. If, as Australians, we are going to maintain this RBA/government designed economic death sentence for half a million ordinary Australians, perhaps, we could alleviate some of their suffering by increasing the dole to a more humane level. Maybe, someone with some courage could end this cruel life sentence of poverty for 500, 000 Aussies? Or will we simply look away, as we have to the endemic neglect and degradation of our Indigenous brothers and sisters for decades and centuries.
Comfortable Australians are good at looking the other way and concerning themselves exclusively with their own back pocket.
Robert Sudha Hamilton is the author of Money Matters: Navigating Credit, Debt & Financial Freedom
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