Cost of living

But the only long-term solution is that Europe needs to phase out fossil fuels and increase renewable energy production. And to do this fast enough to meet existing climate commitments it is necessary to reduce excess energy demand. Achieving this in a just and equitable way requires two things: first, reducing the purchasing power of the rich (who use extremely high levels of energy), and second, ensuring that everyone has guaranteed access to the essential goods and services they need to live a good life. 

This forces us to confront a paradox at the heart of our economic system. Wealthy economies have high levels of production, with resource and energy use vastly exceeding sustainable boundaries, but they still fail to meet many basic human needs. This occurs because, under capitalism, the goal of production is not to improve well-being or achieve social progress, but to maximise and accumulate corporate profit. So we get plenty of SUVs, fast fashion and planned obsolescence, but chronic shortages of essential goods and services like public transit, affordable housing and universal healthcare.

Ecological economists argue that one of the best ways to deal with this problem is to establish universal public services. Public services mobilise production around human needs and well-being, and can deliver strong social outcomes with lower levels of resource and energy use. It also enables a more rapid, coordinated shift to more sustainable systems. By decommodifying and democratising key sectors such as food, mobility and housing, we can solve the cost-of-living crisis – by directly reducing prices – and help solve the climate crisis at the same time. This requires reversing the current tendency of neoliberal governments to defund and dismantle public services, which has led to the extraordinary crisis that is presently engulfing the NHS and the railways in the UK.

This report concludes that business pricing has added significantly to inflation in recent times.
‘Profit push’ or ‘sellers inflation’ has occurred against a background of high corporate concentration and is
reflected in the surge of corporate profits and the rise in the profit share of Gross Domestic Product. There
is much support for the view that prices have added much to inflation. This is to be found in research from
OECD, IMF, BIS, European Commission, European Central Bank, US Federal Reserve Bank, Bank of England
and many think tanks globally and locally and many detailed research studies. Claims that the rise in profit
share in Australia as explained by mining do not hold up. The profits share excluding mining has risen and
energy and other prices associated with mining have been a very significant contributor to Australian inflation.

Those who refuse to have their bags checked can be fired, according to the Coles policy which was updated last year but only recently routinely enforced, according to worker representatives. It replaces a previous practice whereby staff bag inspections were only used after a genuine suspicion of theft.

“The reason they’re bag checking is because they know that their own workers are forced to think about stealing because they can’t afford food,” the secretary of the Retail and Fast Food Workers Union (Raffwu), Josh Cullinan, said.

“We have these ridiculous situations where workers may have their sanitary items and prescription medication, and they have to show it to their manager.”

A Coles spokesperson said bag check policies were standard across the retail industry.

“While the policy was paused for a short time, it has been at Coles for many years,” the spokesperson said.

Coles and rival Woolworths have enjoyed a period of bumper returns after raising grocery prices at a faster pace than inflation, leading to increased profit margins during a period of financial strain for many households.

Across Australia, 3.7m households have experienced food insecurity over the past 12 months, a jump of almost 350,000 on the previous year, Foodbank’s annual hunger report has revealed.

More than 2.3m of those households were “severely food insecure”, meaning they were actively going hungry, reducing food intake, skipping meals or going entire days without eating.