Australia's Cost-Of-Living Crisis: The Fake Wage Scam Exposed

Australia's cost-of-living crisis is being driven by a 'fake wage crisis' according to recent research from the Reserve Bank of Australia, which suggests that real hourly wages have fallen by 5% in the past five years.

The OECD has confirmed this data, and it shows that the number on your payslip may have gone up, but it's buying less than ever. This decoupling between economic management and concerns over cost of living has led to a surge in populism, as politicians gaslight voters with 'get-fixed-quick' schemes.

These schemes include fake wage rises and temporary excise cuts or discounts, which may look good on the surface but do little to address the underlying issues. The government's focus on 'announceables', such as price gouging laws and energy bill rebates, is also part of this problem.

The RBA's research found that younger and low-income Australians have lower levels of economic literacy, which can be exacerbated by these get-fixed-quick schemes. They distort the cost signal and screw with our understanding of how the world works, making it harder for voters to make informed decisions.