September 2017
The BCA is pushing policy irrelevance and being ignored by the parties
When the Prime Minister is forced to spend his own political capital fixing the mistakes of the former head of Origin Energy, is it any wonder the Coalition is ignoring that same man’s policy advice now that he heads up the Business Council of Australia? [This op ed was first published in the Australian Financial Review
August 2017
Citizenship, the Nationals and Adani’s uncertain coal mine
The citizenship debacle engulfing the Nationals, and in turn the Coalition government, has as much to do with trust and integrity as it does with the constitution. Being consistent is important in business and in government. [This article was first published by the Australian Financial Review – here] After the Greens’ Scott Ludlum and Larissa
Grandfathering The Australian Dream
Australia’s young people have been unfairly targeted by policies that have loaded them up with uni debts, locked them out of housing market and crippled them on the ‘flexible’ job front, and any changes that might address this imbalance are ‘grandfathered’ in so that they don’t affect anyone who is presently in a position of
July 2017
Why A Bank Levy Is A Great Idea
The South Australian state government announced in late June 2017 that it was going to follow the Federal government and introduce a levy on the big banks. Episode 19 of Follow The Money, explains why the banks can absolutely afford the levy, why it’s a good idea economically and just how small the levy really
Trusts a burden on the rest of us
Rising inequality is, according to the lefties at the International Monetary Fund, a drag on economic growth. And low wages growth is, according to the lefties at the RBA, a drag on growth. And according to lefties like Theresa May fixing economic equality is “crucial” to the economy. [This article was first published by the
Technology is blind to political labels
If word processors were invented today they would no doubt be seen through the left-right prism. Like a dying star, the 18th century political binary of left and right produces far more heat as the end of its life approaches. Is a wind turbine really “left wing”? Is a grid scale battery “progressive”? [The article
June 2017
RBA board needs an ACTU representative to help keep wages up
The RBA governor Philip Lowe recently encouraged Australian workers to stop being so scared of technological change and foreign competition and start demanding higher wages. But if the governor wants to really understand why so many Australians have been willing to settle for so little for so long perhaps he should ask the Treasurer to appoint the ACTU
Finkel map takes scenic route to cutting carbon
It has taken ten years of cheap politics and bad policy decisions to deliver Australians high energy prices, high greenhouse gas emissions and low levels of reliability. Rather than listen to scientists, engineers or economists Australia’s energy policy has been shaped by lobbyists, political strategists and shock jocks. It’s hard to see how things went
Donald Trump is more honest about climate inaction than Malcolm Turnbull
There is a depressing honesty about Donald Trump’s announcement that the United States will withdraw from the Paris climate agreement. It stands in stark contrast to the hypocrisy of Malcolm Turnbull’s big talk on climate change, which is accompanied by a $1 billion subsidy for the enormous new Adani coal mine. At least Trump is
May 2017
Adani and the end of subsidy denial
It’s not clear whether Adani will win its battle to build its enormous new coal mine. But what is clear is that the coal industry, and the political right, have already lost the war. The enormous subsidies required to make the Adani mine “commercial” have killed once and for all the myth that coal mining
Budget 2017: Banks and miners can just pay up
The big banks have just discovered what Australia’s unemployed have known for some time, in modern Australia it is risky to be the underdog. For the last decade, at least, Australian politics has revolved around what you can get away with, not what the country needs, and the results have been nasty. And as the
Pocket Money: Budget 2017
Tonight, as the Treasurer rose to give his Budget address in the house, our Deputy Director Ebony Bennett grabbed our Chief Economist Richard Denniss and Senior economist Matt Grudnoff for a chat about the Budget, straight after they emerged from the Budget lockup. Thi podcast isn’t a comprehensive discussion of the Budget, but we tried
April 2017
Coalition should be rejecting populist subsidies for Adani’s rail line
Barnaby Joyce says the federal Coalition’s desire to subsidise Adani’s Carmichael coal mine means the government will attract “some flak” from environmentalists. No doubt there will be, but he might do well to prepare for some friendly fire as well. [This article was first published in the Australian Financial Review – here] The government should expect some flak
Why big business doesn’t care about deficits
Two days after demanding $48 billion worth of tax cuts, BCA president Grant King warned us that “if we don’t make changes, if we don’t get on top of the budget deficit, debt is going to be rising and it will be a burden for generations to come”. [This article was first published by the Australian Financial
Unpacking The Energy Debate
In episode 17 of Follow The Money, we tackle the current energy debate, including the South Australian blackouts, the war on renewables, what Christmas prawns have to do with baseload power and why the way we heat hot water offends our Chief Economist Richard Denniss. Host: Deputy Director Ebony Bennett // @ebony_bennett Contributors: Chief Economist Richard
March 2017
Where did all the rationalists go?
Are there any economic rationalists left in the Australian business community? Where are the fiscal conservatives when you need them? [This article was first published in the Australian Financial Review – here] Hard headed budget hawks are missing in action when it comes to our governments giving a $1 billion subsidy to help build the
Debt phobia is doing long-term harm
The Coalition Government is still paying a heavy price for Tony Abbott’s “ability” to simplify complex policy issues down into three-word slogans. His promise to “stop the debt” worked a treat for him in opposition but it made him look a failure as Prime Minister when debt grew rapidly on his watch. [This article was
February 2017
The fossil fuel industry and its alternative facts
In a post-truth world, the ability of an industry to generate its own “alternative facts” is likely to be an asset in the short term and a liability in the long term. Indeed, for those who crave certainty and value continuous disclosure, the willingness of some firms to move well beyond simply putting a positive spin on
When did Donald Trump become Malcolm Turnbull’s celebrity tax adviser
Malcolm Turnbull is using Donald Trump as a celebrity endorsement for his plan to give corporate Australia a $50 billion tax cut. But, like all dealings with people who are famous for being famous, the risks can be greater than the returns. Take Trump’s views on free trade. First published by the Australian Financial Review
January 2017
Billionaires get more leeway than vulnerable citizens. It’s obscene
When politicians spend taxpayers money flying themselves to fundraising parties or flying to their own weddings, we leave it up to the politician to decide if their claim is “outside of entitlement”. First published on The Guardian – here When it comes to income tax we allow people to claim $300 worth of tax deductions without receipts because
Expenses scandal shows need for national anti-corruption body
Is it any wonder that voters who don’t believe politicians’ travel expense claims are fair dinkum won’t believe their claims about the benefits of economic reform either? Trust is hard to earn and easy to lose. —First published by the Australian Financial Review here— While much has been made of “the optics” of the government
December 2016
SUMMER SPECIAL Econobabble
Welcome to our second Follow The Money summer special! If you’re taking a break this summer, but still craving a political fix – we are here to help. Over the summer we’ll bring you the highlights from The Australia Institute’s popular Politics in the Pub live sessions from 2016. In this episode you’ll hear a discussion from
The notion of evidence-based policy in Australia is dead
The notion of evidence-based policy in Australia is dead. While it’s been in poor health for some time, it was finally killed by the Coalition backbench last week and replaced with “gut instinct” and “the pub test”. First published by the Australian Financial Review – here When Deputy Prime Minister Barnaby Joyce was recently quizzed
Pocket Money: The Adani Coal Mine
In a special mini-episode we’ve dubbed “Pocket Money” we take a look at the recent developments with Adani’s Carmichael coal mine in Queensland’s Galilee Basin. It’s a straight discussion, without our usual bells and whistles so that we could respond quickly and if you like it, we’ll probably do more of these Pocket Money episodes
November 2016
Do we want house prices up or down?
Just as market forces were about to push the price of housing down in Australia, the Treasurer stepped in with some new regulation. Phew. Some first home buyer’s nearly snatched a good deal, but luckily the Treasurer was there to protect the property developers from the oversupply their building bonanza created. [First pubished by the
Nuclear Dumps
How much is a hole in the ground worth? Australia has considered building a nuclear waste dump many times over the decades. Each time, the proposal has fallen through. This time, in South Australia, proponents are making $100 billion dollar claims. Richard and Rod take a look at those claims and the economics of building
Interest always trumps ideology
In the modern version of “the battle of ideas” political interests trump political ideology nearly every time. Take, for example, the alleged supporters of “small government” who have been strategically silent as the Australian resource industry pushed for a $100 billion, wholly government owned, nuclear waste dump in South Australia. First published by the Australian Financial Review
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