Letter to the Editor: A vicious cycle of inflation

DEAR News Of The Area,

AUSTRALIA is being told inflation is the nation’s biggest economic threat, yet the actions of the Federal Government suggest something very different.

Australians are tightening their belts, cutting household spending, struggling with mortgages, rent, groceries and power bills, while Canberra continues to spend at record levels.

The question many ordinary Australians are now asking is simple: if inflation is supposedly the priority, why does the government keep pouring more money into the economy?

Every week Australians hear politicians talk about “cost of living relief,” but too often these measures simply add more fuel to the inflation fire.

Handouts, subsidies and massive spending programs might sound compassionate in a press conference, but when governments continue to inject billions into the economy without restraint, demand rises and prices keep climbing.

It becomes a vicious cycle – the government spends more to offset rising costs, which in turn helps keep those costs high.

Meanwhile, the Reserve Bank responds by increasing interest rates to try and slow spending. The result? Everyday Australians are punished twice.

Families with mortgages are hammered with higher repayments while taxpayers continue funding government spending sprees that appear to have no end.

There is also a growing perception that governments benefit politically from inflation staying high.

When inflation rises, governments collect more GST revenue.

Income tax receipts also increase as workers are pushed into higher tax brackets despite not actually being better off.

Asset prices remain inflated, allowing governments to boast about economic growth while ordinary Australians fall further behind in real terms.

Australians are not blind to the contradiction.

They see politicians flying around the country announcing billions for new projects, expanding bureaucracy, funding consultants and growing government departments, all while lecturing households about the need for economic discipline.

Families are expected to sacrifice, yet government spending continues almost unchecked.

The hard truth is that inflation will not seriously come down until government spending is brought under control. You cannot fight inflation with one hand while accelerating it with the other.

Economic management requires restraint, prioritisation and difficult decisions — not endless announcements designed for headlines and political survival.

Australians deserve honesty.

If the government truly wants inflation under control, it must lead by example.

That means cutting waste, reducing unnecessary spending, shrinking bureaucracy and focusing on policies that grow productivity rather than simply throwing more borrowed money into the economy.

Right now, too many Australians feel like they are carrying the burden while Canberra keeps spending as if there is no tomorrow.

Until that changes, many will continue to believe the government does not really want inflation to fall – because politically and financially, high inflation suits them just fine.

Regards,
Troy RADFORD,
Tanilba Bay.