Cost of Living Debates Mask Deeper Inequality and Stagnant Incomes
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The "cost of living" concept is meaningless; the real issue is whether incomes are high enough to afford goods.
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Historically, prices have risen but incomes have risen faster, so standards of living have improved over time.
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Current "cost of living" policy debates are incoherent and have produced declining living standards.
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Reducing inflation by suppressing wages will benefit the RBA but not workers. Gradual reduction without real wage cuts is better.
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The problem is income distribution - profits over wages, top 10% over lower incomes. “Cost of living” is about wealth inequality.