Business Daily Media
WORKSPACE

.

Business News

two leading economists on Australia's post-COVID economy

  • Written by Michelle Grattan, Professorial Fellow, University of Canberra

With three months before JobSeeker is due to end and calls for billions of dollars in extra spending[1], there is a growing debate about how Australia’s post-coronavirus economy will actually look.

While Scott Morrison has said Australia will need to lift economic growth by “more than one percentage point above trend” through to 2025, a 22-economist panel [2] hosted by The Conversation forecast a bleaker result.

Read more: No big bounce: 2020-21 economic survey points to a weak recovery getting weaker, amid declining living standards[3]

Growth one percentage point above trend would average almost 4% per year.

The Conversation’s economic panel forecast an annual growth averaging 2.4% over the next four years, much less than the long-term trend.

In this podcast, Michelle Grattan discusses the economic pathway ahead with two economists featured on the panel: Professor of Economics at the UNSW Business School Richard Holden, and Professor of Economics and Public Policy at the Australian National University Warwick McKibbin.

McKibbin argues for a major change to the national cabinet. “I think it would be very useful if the leader of the opposition was on that cabinet, and perhaps even a couple of the key ministerial portfolios from the opposition side, so that you truly have… both sides of the political spectrum represented.”

Making the body more inclusive, McKibbin says, would assist a bipartisan approach. “If you are going to go for the big bipartisan approach, which I think is fundamental to most of the problems we face, you have to do something like the national cabinet,” he said.

“It worked very effectively during the worst parts of the virus, it is breaking down now it appears, because Australians seem to think things are okay now. But I think you’ll see it re-emerge very shortly.”

Richard Holden warns an increase in taxation should not be contemplated to pay for some of the large spend the COVID crisis is requiring.

“I don’t think there will be an increase in taxation under this government, and I definitely don’t think there should be under any government,” he says.

“The coalition has made the debt and deficits mantra part of their political brand, and I understand that from a political perspective. And there’s nothing wrong with aspiring to balancing the budget over the economic cycle.”

“But when you’re in one of the largest economic crises in a hundred years, it is not the time to be penny-pinching and focusing on economic management credentials as measured by the budget bottom line in the short term.”

Listen on Apple Podcasts two leading economists on Australia's post-COVID economy

Stitcher Listen on TuneIn

Listen on RadioPublic two leading economists on Australia's post-COVID economy

A List of Ways to Die[4], Lee Rosevere, from Free Music Archive.

Authors: Michelle Grattan, Professorial Fellow, University of Canberra

Read more https://theconversation.com/politics-with-michelle-grattan-two-leading-economists-on-australias-post-covid-economy-141873

Business Daily Media Business Development

80% of SMEs ditch DIY travel in favour of a Travel Management Company

CORPORATE TRAVELLER in Australia has revealed 80 per cent of new business wins in August have come from SMEs ditching the DIY model in favour of the traditional Travel Management Company...

Corporate Traveller - avatar Corporate Traveller

Understanding Technology to Boost Your Business

To start with, there is a general belief that technology is about innovation. Yes! That’s just right. However, what is not always clear to everyone is that innovation walks hand-in...

NewsServices.com - avatar NewsServices.com

Sabre promotes experienced travel industry leader Nicole Regel to oversee teams in Australia

SINGAPORE and SYDNEY – 22 September 2021 –Sabre Corporation(NASDAQ: SABR), a leading software and technology provider that powers the global travel industry, has promoted experi...

Business Daily Media - avatar Business Daily Media

How Glamping Impacts the Quality of Your Life

Glamping and being outside can improve the quality of your life in a variety of ways. Glamping can keep you alive for a long time and also offer a healthier life. There are numerous addi...

Briony Watts - avatar Briony Watts

Writers Wanted



NewsServices.com

Content & Technology Connecting Global Audiences

More Information - Less Opinion