Millionaire Tim Gurner's refreshing honesty

Property developer and CEO Tim Gurner says low unemployment in recent years has undermined the work ethic and discipline of the people who construct the buildings that made him rich.

He said: “Tradies have been paid a lot to do not too much in the last few years , and we need to see that change. Unemployment has to jump 40 to 50 per cent in my view’.

The Reserve Bank of Australia ’s new governor Michele Bullock recently stated the unemployment rate had to rise to 4.5 per cent .

If inflation is still above 2.5% when unemployment rate gets that high, this will be interpreted as evidence that the true NAIRU must be higher than thought.

We should be grateful to Gurner for his refreshing honesty, which helps illuminate the choices being made in monetary policy.