This budget will be especially challenging. Given the risks of stagflation, fiscal policy needs to be tightened. But in a cost-of-living crisis the main burden should fall on those who are relatively well off and that requires tax reform. (more…)
Michael Keating
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Reform requires trust – and trust requires openness
Economic reform depends on public trust – and that trust is being undermined by declining transparency, weak accountability and limited public engagement.
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Productivity, inequality and the rise of populism
The rise in populism in numerous advanced economies has been driven by cost-of-living pressures. To protect our democracy, we will need faster productivity growth and all wages to rise with productivity. (more…)
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Time for tax reform – and this may be the moment to act
With inequality rising and budget pressures mounting, a rare political window has opened for meaningful tax reform – if the government chooses to act.
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A war without clear objectives is turning against Trump
With no clear objective and mounting economic and political costs, the case for ending the Iran war is becoming overwhelming.
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Ministerial responsibilities and Robodebt
The principle of ministerial responsibility means a minister must answer for the policies and advice presented to cabinet – including the flawed Robodebt scheme.
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Migration scare campaign ignores Coalition’s own targets
The Coalition is trying to turn migration into a political flashpoint. But the long-term net overseas migration target under Labor is identical to the one projected under the Morrison government.
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Capital gains tax should increase
Reducing the capital gains tax discount would make the tax system fairer, raise much-needed revenue and have little effect on housing supply, given how constrained that supply already is.
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AI, productivity and the long stall in living standards
Artificial intelligence may offer the best chance to lift stagnant productivity and living standards – but without deliberate policy choices, its benefits will be uneven and limited. (more…)
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Why higher taxes make more sense than higher interest rates
Rather than cutting public spending to restore the budget balance and reduce inflationary pressures, it would be better to increase taxation. (more…)
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Making polluters pay could fix Australia’s climate problem – and its budget
A new report shows how making polluters pay will not only diminish the threat from climate change, but it can also help restore the budget and the economy. (more…)
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Mark Carney – Values: an economist’s guide to everything that matters
Mark Carney argues that treating price as a proxy for value has driven crises in finance, health and climate. His book offers a roadmap for rebuilding trust, fairness and resilience.
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Australia’s economic growth forecasts look upbeat – but the foundations are shaky
According to the government the economy is strengthening, but the risks are all on the downside, especially the projection that productivity will grow significantly faster than it has over the previous 15 years.
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Best of 2025 – Why Labor can’t be bold without confronting tax reform
If the Albanese government wants to deliver lasting reform – in education, healthcare, housing and climate – it will have to confront the hardest political question of all: how to raise the revenue to pay for it. (more…)
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Best of 2025 – Assessing the Liberal Party’s policy-making capacity
Good policy should be evidence-based. But this is not the case with the Liberals energy policy and seems unlikely with their migration policy. (more…)
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Best of 2025 – The debate about net zero ignores the evidence
Those in the Coalition who are opposed to targeting net zero carbon emissions, argue that it will cost too much. But that claim is false and not supported by the evidence. How can they get away with it? (more…)
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Trump is delusional about Venezuelan oil
Trump is banking on Venezuela’s vast oil reserves to justify US intervention. But the state of the industry, global energy shifts and basic economics point to failure.
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Best of 2025 – Trump’s risky American economy
Trump’s tariffs, migration and fiscal policies are endangering the American economy, and risk destroying American claims to global leadership. (more…)
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Best of 2025 – Superannuation and the Canberra Press Gallery’s fantasies
The Canberra Press Gallery was completely absorbed with the supposed politics of last week’s superannuation changes and completely failed to consider their merits and why the changes were therefore made. (more…)
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Best of 2025 – Inequality and the future of democracy
Rising inequality and declining living standards have posed a threat to democracy in several democracies, but so far not in Australia. However, the increasing inequality of wealth, driven by housing becoming unaffordable without rich parents, is a threat. (more…)
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Best of 2025 – How important is an Albanese-Trump meeting?
Trump’s record suggests that meetings with him frequently fail. Instead, Albanese has an important agenda to pursue at the UN in New York, and when dealing with the US better outcomes are more likely if Australia develops its own policies in its own interests. (more…)
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Best of 2025 – Intergenerational equity and tax reform
Much of the discussion about the need for tax reform to preserve intergenerational equity is confused. The main challenges facing young people, in particular, are the limitations on the supply of housing and climate change. (more…)
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Best of 2025 – An economic reform agenda for Labor
The recent election was won by looking ahead. But a better economic future requires an economic reform agenda, and getting agreement will not be easy. However, there are encouraging signs that the government is up to the task. (more…)
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Australia’s cost-of-living crisis has a housing problem
Cost-of-living pressures dominate political debate, but the sharpest strain is not falling incomes. It is housing costs, particularly for first-home buyers, fuelled by stagnant productivity and chronic undersupply where people want to live. (more…)
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Expert independent evidence-based assessment
This month we are asking readers to support our work through a tax deductible donation via the Australian Cultural Fund. Regular author, Michael Keating writes about the value of Pearls and Irritations. (more…)
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Why Labor can’t be bold without confronting tax reform
If the Albanese government wants to deliver lasting reform – in education, healthcare, housing and climate – it will have to confront the hardest political question of all: how to raise the revenue to pay for it. (more…)
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Assessing the Liberal Party’s policy-making capacity
Good policy should be evidence-based. But this is not the case with the Liberals energy policy and seems unlikely with their migration policy. (more…)
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The debate about net zero ignores the evidence
Those in the Coalition who are opposed to targeting net zero carbon emissions, argue that it will cost too much. But that claim is false and not supported by the evidence. How can they get away with it? (more…)
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Trump’s risky American economy
Trump’s tariffs, migration and fiscal policies are endangering the American economy, and risk destroying American claims to global leadership. (more…)
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Superannuation and the Canberra Press Gallery’s fantasies
The Canberra Press Gallery was completely absorbed with the supposed politics of last week’s superannuation changes and completely failed to consider their merits and why the changes were therefore made. (more…)