Shorten’s policy stand threatens a wage-price spiral

The Opposition Leader seems to have forgotten the pernicious effects of inflation.

In arguing for increased wages, Bill Shorten seems to have forgotten the pernicious effects of inflation on the economy. He is old enough to remember when the CPI rose sharply, sometimes by more than 10 per cent a year. People whose incomes did not keep up with inflation saw their material standard of living fall.

Most feared was the dreaded wage-price spiral in which rising wages and prices formed a relationship in which cause and effect was difficult to unravel. Did rising wages cause rising prices, or vice versa?

Now the Labor Party and the ACTU risk setting off a new wage-price spiral. A generation unfamiliar with the effects of inflation will discover that their pay rises are quickly wiped out by rising prices.

Rod Wise, Surrey Hills, Vic

Bill Shorten seems to have no regard for self-funded retirees who have taken steps to avoid being on the age pension and take care of themselves.

His franking moves will hurt many good people who are not rich. Self-funded retirees have been hit hard by an economy lacking confidence. We all need policies to find ways to get companies growing again. Shorten’s election promise on wage increases will cause a loss of jobs — why not increase the tax-free threshold for low incomes instead?

This election should be argued on the economy. The Liberal Party must shake off its internal fighting or it will be too easy for Labor.

Stuart Davie, Corowa, NSW

Another day, another well-heeled, star Liberal independent candidate. They all seem to bear a number of not-so-independent traits. They claim to be passionate about “climate change” but it’s something they can’t do a damn thing about.

They are “progressive”, meaning they are starry-eyed products of an education system that eschews the classics and Western civilisation.

Coal mining is anathema but for the moment they will take the riches brought in by that commodity yet deny the benefits of exports to the poor and needy without electricity.

They have no conception of what it’s like to do without. They are backed by GetUp and the ABC. And if you happen to question their global warming apocalyptic faith as redolent of being a retreat from reason, you are labelled hard Right and a 1950s retrofit. The masses look like being duped again into electing these self-absorbed wannabes. But like a shoeshine, they wear off rather quickly though not before wreaking legislative havoc.

Anthony Smith, Ferny Hills, Qld

I am having nightmares at the prospect of a Shorten-led Labor government. If he calls employers fat cats, perhaps he should look at his own salary and perks as well as his union mates. At least employers provide jobs and wages which is more than Shorten will ever do.

Patricia M. Smith, Mt Martha, Vic

I note that the millennial factor is going to play a big part in the coming federal election.

Here we have a group who have never done it tough in their lives, never had to do the hard yards growing up in a post-war environment with parents scarred by warfare and never had to do without their internet and mobile phones.

Most have never had to live out in the back blocks because that was all that was available for their returned services parents. They have never lived without electricity, sewerage, running water and public transport at their door — not to mention welfare.

They tell us that climate change is their most pressing problem, which distresses me greatly, for it was about 2 degrees warmer across the planet during the Middle Ages, everyone survived and the world did not come to an end.

Sadly, this pampered generation believe there is such a thing as a socialist utopia and, according to the polls, will deliver us a socialist government at a time we can least afford to go that way. There is no such thing as a successful socialist utopia, never has been, never will be.

However, there is such a thing as a fool’s paradise that Bill Shorten is trying to sell — even my modest economics tells me it will do nothing but bring us into an almighty recession.

Be careful what you wish for as it may have a huge effect on your future employment and that of your children’s children. It’s easy to find a fool’s paradise but awfully hard to find your way out once in there.

Don Smith, Noosa, Qld