It also questions the RBA's apparent obsession with keeping wages low.
The research by Chief Economist Greg Jericho has found that using the Reserve Bank's own predictions, it will take workers until 2037 to get back to where they were at the end of the COVID pandemic.
The analysis highlights the RBA's repeated warnings about the dangers of wage growth, even though wages are stagnant, yet prices and corporate profits are soaring.
It also reiterates that it's profits to blame for surging inflation, not consumer spending, even though consumers have been punished for inflation with repeated interest rate rises.
The analysis reveals that governments are also to blame for stalling wages, with many imposing unfair and unnecessary caps on public service wages, blatantly offering pay rises below inflation.
"People understand that, in very broad terms, the Reserve Bank has put up interest rates in response to high inflation," said Greg Jericho, Chief Economist at The Australia Institute.
"But what many don't realise is that the RBA seems to be obsessed with keeping wages down.
"In a recent meeting, Michele Bullock warned of 'higher wage increases that will feed through into business'.
"What makes that comment even more extraordinary, is that it came immediately after the worst quarter of wage growth in four and a half years.
"There's a growing trend where governments are underpaying public servants, imposing wage caps which were kept in place even when the RBA was cutting interest rates to improve wage outcomes for Australians.
"When governments pay public servants less, wages in the private sector follow.
"In real terms, someone who was on $90,000 at the end of the COVID pandemic and has had average pay rises since, is about four and a half thousand dollars a year worse off in terms of what they can spend their money on.
"While much of the focus on Australian economy is on inflation, interest rates, property prices and cost-of-living, the drop in real wages is a quiet disaster for ordinary workers."
