Wages do not cause inflation but they do eat into profits. And profit, the unpaid labour of the working class, is the lifeblood upon which all the parasitic layers of society depend from bankers, to bosses, to central bankers. The wage-price spiral is not a serious model; it’s a tale told to frighten workers out of threatening profit.
In the 2022 federal budget, the government is unveiling tens of billions in new spending over the next five years, aimed at targeted initiatives to build the economy, while continuing to chip away at the deficit.