Despite decades of debate, many economists can’t agree with each other about fundamental issues. We can’t agree what causes unemployment, we can’t agree what fixes it and we can’t agree whether we should run deficits when the economy slows down. Careers could be made on the length of some unresolved disputes with colleagues. Lawyers, on

If you believe the recent media reports about the composition of the Senate from July 1 next year, you’d think we were facing three years of the Clive Palmer’s Palmer United Party (PUP) “bloc” holding the Abbott government to ransom. But there are two important reasons to view such reports with scepticism…

While the Coalition is yet to turn around a boat carrying asylum seekers, it has already made a stunning turnaround on the issue of government debt. Having raged against the ALP’s high-taxing, high-spending ways for the past six years Joe Hockey now wants us to be a bit more sophisticated in our approach to public finance. After spending years

Earlier this month the Greens lost more than 500,000 of the 1.6 million voters who supported them in 2010. Earlier this week Greens leader Christine Milne lost six of her most senior staff, including her chief of staff who cited fundamental strategy differences as the reason for his departure. Senator Milne, on the other hand,

If you can create a “crisis”, offer a snake oil solution, and make a lot of money out of both, then you are onto a good thing. All the better if you can blame someone else for causing it in the first place. That’s exactly what the coal seam gas industry is doing, in partnership

Winston Churchill once said, “never let a good crisis go to waste”. The gas industry clearly agrees with him. It has taken a problem of its own making and turned it into a reason why Australians should ignore all their concerns about coal seam gas and let the industry drill wherever it likes. And if

The carbon price has become the ultimate political symbol. But has this helped or harmed the cause for those who support it? For many progressives this symbol was so potent that they ran a “say yes” campaign for it even before they knew what it would entail. Regardless of the emission reduction targets or the generosity

A common response from progressive Australians to electoral defeat is to threaten to move to New Zealand.  Just what moving to a country with a weaker economy, worse weather and a conservative government is supposed to achieve is typically left unsaid.  There is no doubt that if he sticks to his word there will be

Australia has listened, it has voted and it has decided. Australia wants political arrangements ‘other’ than what the major parties intended. It’s not what Sophie Mirabella expected before being ‘outgunned’ by the independent forces of Cathy McGowan and Tony Windsor. It’s not what ALP faceless man, Don Farrell, expected when he gave up his number

Small reforms to Senate preference voting could deliver a better and more stable system for everyone. A simple solution would be to ensure that parties which polled below a threshold, say 2 per cent, could disburse but not receive preferential votes. Such an approach would ensure no votes were “wasted” but at the same time

The export gas multinationals are no friend of Australian manufacturing. There is only one reason that the gas prices are set to at least double over the next few years – gas export companies will force Australian consumers to compete with the Asian market for gas. That’s the true cost of opening up coal seam

When Ford announced it would close its Melbourne plant at a cost of about 1200 jobs, the nation went into shock. But where is that shock now as Tony Abbott promises to shed at least 12,000 more public-sector jobs than Labor? What’s worse is that he’s making this pledge in the middle of an election

If tax is the price we pay to live in a civilised society it seems that neither of the major parties have high hopes for the communities they say they want to build in northern Australia. Prime Minister Kevin Rudd is suggesting that companies based in the Northern Territory should face a reduced company tax

The word productivity will be used countless times in this election campaign but the issue of our investment in science will be lucky to get its 24-hour news cycle in the sun. And while business groups are often critical of governments for being focused on the short term, they are not calling for increased funding

With polls showing we may be on track for another minority government, suddenly we seem surrounded by cries of “not another hung parliament”. And segments of the media and business are again raising exaggerated fears about the “risk and uncertainty” or “instability and short-termism” that will accompany such an outcome. But the fact is that

When politicians lie, make things up or simply get important things wrong, we take for granted that it is the role of their political opponents to highlight such errors. Our politicians are so focused on each other’s words that a mere slip of the tongue can become a news story for days. This isn’t so for

Australian universities have been reaping the benefits from taking international students for years. But is that the way it will always be? What if the countries those students come from turn the tables on the cash strapped western universities and ask them to bid for the work?

Prime Minister Kevin Rudd’s announcement that the carbon price is now a quarter of what was forecast is good news; the question is, for whom? Rather than crippling, the impact of the carbon price is barely even irritating for most polluters. Compared with the impact of the high exchange rate since 2007, the carbon price

Australia used to have very high protection rates for its manufacturing industries. Historically tariff quotas on motor vehicles meant that Australian car prices were double the prices for equivalents overseas. Many other manufactured goods were sold at multiples of the prices in overseas markets. Australia like many other countries imposed very high tariffs on most

Is economics a science? When we teach economics students, we usually tell them that they are learning about “the science of the efficient allocation of scarce resources”. But when we listen to public debate, often economists don’t sound very scientific. While it is often said that science can’t proceed without failure, it’s rare to hear an

In debates about climate change and the mitigation of greenhouse gas emissions, there is a widely-held belief that market mechanisms, like the Labor government’s carbon pricing scheme, will reduce emissions in the cheapest possible way. As a matter of pure theory, this is correct but, in practice, it depends on what is included and excluded

We all agree that gas prices are going to rise. The Australian Petroleum Production and Exploration Association (APPEA) would have you believe that the restrictions on coal seam gas (CSG) in NSW are the cause of the coming price hikes. Ironically, it’s not the lack of CSG that is driving up the price but the

When it comes to future generations it seems that we can never be too generous. But is this generosity coming at the expense of current generations? In Canberra, when it comes to job losses, it seems the answer is ”yes”. Consider the Australian National University’s approach to its finances. The ANU is owned by taxpayers

The mining industry is in the middle of an expensive new campaign to convince Australians that the growth of mining will not come at the expense of farming. In late 2011 Federal Opposition Leader Tony Abbott talked about respecting the rights of farmers and about protecting arable land from mining, but rejected calls to stop

Last week, the newly installed Prime Minister Kevin Rudd challenged Tony Abbott to a debate about public sector debts and deficits. If it goes ahead, it would likely be a rare respite from the slogans that have haunted Australian public debate for the past few years. But the debate that we should be watching is

Confusion and contradiction have become the norm in our topsy-turvy political landscape, but the recent decisions by the ACT and NSW governments about how to fund infrastructure must take the cake. Here in the ACT, the Labor-Greens government is set to embrace a ”public-private partnership” to build its promised light rail project. The Liberals in

Imagine if health and community sector workers wore high-vis vests; our streets, our shopping centres and even our airports would be full of them. We might even begin to think of them as the engine of job creation. But they don’t wear such things and we don’t think such things and the result is a

Last month, PWCS management halted development of its controversial T4 coal terminal after downgrading its demand projections, citing falling commodity prices and the shifting global energy market. Considering the opportunistic nature of the proposal, this was always likely to be the case. The company’s environmental assessment used historically high estimates for steaming and coking coal

Do Tony Abbott and Joe Hockey know how badly conservative governments are managing their economies in Europe? While Australia ”struggles” along with gross domestic product growth of just below three per cent and unemployment rate of 5.7 per cent, economic activity in the eurozone declined by 0.2 per cent in the first three months of

A lot of the debate in Australia reflects concern about our future and how budgetary pressures are likely to evolve. The backdrop of the discussion is a profile of the predicted population in 40 years, what that means for expenditure and how we should be preparing for that outcome. The intergenerational reports have provided a