Our current inflation, for many years, is not caused by rising worker wages. We know that. Instead, it’s caused by excess corporate profit-seeking.

It’s easy (and intentional) that blame is diverted from the guilty parties, to the Reserve Bank for these mistakes.

The RBA have exactly one tool, one dial they can twiddle: raise or lower interest rates for so-called “cash loans” from the Reserve Bank. That’s it, that’s all they have. If a problem can’t be properly addressed by doing that, there’s nothing helpful the Reserve Bank can do.

So, it’s not the RBA’s responsibility to get us out of this mess; they cannot. But it is the responsibility of our Federal government, who can act but pretend they have no power, and leave the RBA to take the heat.

They enjoy being able to point to the RBA, whom they know cannot help. This shields them from responsibility to take effective action.

The problem (as correctly identified by the article) is not workers’ wages rising; wages are falling way behind inflation and have been for a long time. The problem is caused by unreasonable expectation of profits by corporations and their shareholders, in a time when everyone else is financially suffering. They raise prices with no justification and with full impunity, everyone else suffers and they extract more wealth from the rest of us.

Tax those excess profits robustly, quickly, and inescapably (here’s one example of many how this could be done); and watch our current inflation fall, as they stop price gouging, stop laying off workers, try to find a way to keep going with normal profits instead.

The federal government can do it with the stroke of a pen. Make them do it.