The inflation crisis in Australia is a complex issue, and the root cause is often overlooked. While the blame is often placed on the Reserve Bank of Australia's governor and workers' wage demands, the real culprit is privatization. This is a controversial topic, as Australians have historically been against privatization, and it's time to address its impact on inflation. The article highlights how privatization has led to rising costs in essential services, such as utilities, healthcare, and education, which are now driving household budgets higher. The author argues that privatization has created a system where for-profit actors can easily raise prices, especially during global energy price shocks, without facing much competition. This is further exacerbated by the privatization of government-funded human services, which has led to tens of thousands of businesses seeking profit, contributing to economy-wide price increases. The author suggests that workers are paying the price through higher fees, interest rates, and unemployment. The solution, according to the author, involves a combination of price controls and public provision. Implementing price controls, such as a windfall profits tax, can reduce inflation by taxing excessive profit spikes. However, the long-term structural solution lies in re-establishing public ownership and control in essential services. This includes expanding public education and Medicare, adding childcare to the public education system, and dissolving markets for fee-charging services. The author predicts that these measures will be popular, despite opposition from the business sector, as they address the underlying issues of inflation and the loss of control for working people. This article highlights the need for a comprehensive approach to tackle inflation, focusing on the role of privatization and the potential benefits of public provision.
