They say that a picture is worth a thousand words. The picture below -- courtesy of the ABC News' Andrew Probyn/Reserve Bank of Australia -- shows how wage growth forecasts made by the RBA (skinny colourful lines) compare to actual wage growth (fat black line):
Beyond the embarrassment some Very Serious Failed Forecasters might feel, this has a more serious side. So much so that politicians claim to be concerned about wage growth stagnation, Probyn added. In my experience, this is unheard of.
Probyn apparently was told so by at least one. Unfortunately, he never named names. Maybe those politicians aren't worried enough to put their troubles on the public record.
Probyn does mention, however, that the new RBA governor, Philip Lowe, a month ago exhorted workers to demand higher wages. I missed that.
In the meantime, the wage cuts the Fair Work Commission, in their immense wisdom, decreed at the beginning of this year took effect last July the 1st.
More good news: PM Turnbull announced this week a new and wonderful workfare scheme where the Government will pay retail employers $1,000 for each 18-24 year old kid they employ as unpaid intern. The lucky interns will get $100 a week (yes, you read that right: one hundred dollars) from the Government for that, plus a once-in-a-lifetime opportunity of becoming a shop attendant. Dreams will come true for ten thousand kiddies (if they actually get the job). Oh, happiness!
One thing's for sure: Turnbull is neither the politician Probyn spoke to, nor he gives a shit about what Lowe says.