Economy

The claims that Treasurer Jim Chalmers is ‘at war’ with the Reserve Bank of Australia are becoming ridiculous and irresponsible. Initiated by the opposition and shamelessly supported by the Coalition’s media arm, the Murdoch media, the specious campaign comes at an important time in the conduct of monetary policy.

It is frustrating how readily we have accepted the underfunding of education, especially universities, and importantly, research.

Knowing how crucial the cost of living has become for most Australians, the government must have been hoping for better than these latest inflation numbers.

As speculation gathers around the possibility of an early election, I am growing increasingly sceptical. The prime minister has no substantive justification for considering such a move, except to exploit the vulnerability of Opposition Leader Peter Dutton and his team. It would do nothing towards the betterment of Australians.

A competitive economy is good for farmers and shoppers, workers and entrepreneurs. A dynamic economy rewards hard work and encourages innovation. It ensures everyone has a fair shot, not just the lucky insiders. A more competitive economy is good for Australia.

One of Australia’s most frustrating failures as a nation has been a limited capacity to value-add. This country has the world’s third-largest population of sheep – behind China and India – but much of the Australian wool-clothing we wear is imported, such as men's suits from Italy.

Another week, another federal budget, another housing announcement or three. Another several billion dollars promised for social housing on top of last year’s clutch of announcements and billions. Yet for all this, the federal government is not really trying to solve the crisis. All it is doing is managing perceptions.

At first blush, this third budget under the Albanese government is a very clever political document. Its focus is on two main challenges: first, the immediate one of providing cost-of-living relief, and second, a visionary direction for our economy. The Future Made in Australia strategy is intended to launch this country into the global competition to bring about an effective transition to net zero emissions by 2050. This clean energy campaign promises to be the biggest industrial transition since the Industrial Revolution.

With the cost-of-living crisis likely to dominate the next federal budget and election, attention will inevitably focus on the lived experience of particular groups across our community. How have they fared?

Jim Chalmers had a clear message for the inflation hawks as he embarked on his hectic round of budget scene-setting this week. ‘This is not the time,’ he declared, ‘for scorched-earth austerity.