International research by the Organisation for Economic Cooperation and Development (OECD) has found corporate profits have contributed far more to Australia’s drive in inflation through the past year than wage growth or employee costs.
According to the report, company profits were responsible for nearly all the inflation observed during the March quarter of 2022, which marked the highest increase in inflation over a three-month period in more than 30 years.
This challenges the official view of the Reserve Bank of Australia (RBA) and business lobby groups, who have attempted to spin the narrative by blaming the lowest-paid workers in Australia for the soaring cost-of-living.
Workers have lost share of national income
A report by the Australia Institute economist Dr Jim Stanford found that while corporate profits have rapidly increased since the beginning of the COVID-19 pandemic, workers have suffered considerable economic losses.
