Economic Truth v’s Personal Opinion
Okay! this IS my personal opinion, but it would have been hoped that as Economics Editor for the Sydney Morning Herald, Mr Gittins article criticizing members of his profession was more balanced.
From my understanding ALL that economists can do is provide their opinion based on both facts obtained and views that they hold as to the likely outcome of recommendations provided. It is solely a political decision as to the course that is to be taken.
We all know that no matter what political party is in power, the course of action will be to obtain the greatest voter support.
It is acknowledged that the Reserve Bank now defend the stimulus provided due to the (much maligned) pandemic as being excessive, however it is not reported from where their instruction emanated.
Whilst it is correct that the excessive stimulus saw an increase in retail prices I’m sure Mr. Gittins would agree that it would have been an increase in all prices including production costs, and that what occurred was compliance with the economic law of supply and demand and not what is a consumer’s opinion of “price gouging” as expressed in the article.
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