3 March

"At the heart of this conflict is wages: The RBA wants to get them up, the government does not, because the Coalition holds to the outdated belief that higher wages cost jobs, because profits and investment get squeezed. Apart from the fact that the RBA now says that’s wrong, it is disproved by the national accounts: Company profits rose 15 per cent to a record high in 2020, but business investment is lagging and is the weakest part of the economy." Alan Kohler