Government needs to consider policies that boost private demand for goods and services

Reuben Finighan (University of Melbourne) argues that the Treasurer’s comments show some understanding of the challenges presented by the new low-rate era, but the policies he promotes do not. Taking money from welfare and sending it to corporations risks increasing corporate saving while reducing consumer demand – the exact opposite of what is needed. 

Welfare reform needs to be about improving well-being, not punishing the poor

Peter Whiteford (Australian National University) writes in The Conversation that some of the improvement in workforce participation may have been due to the impact of the benefit activation reforms, but it was also due to Australia’s experience of uninterrupted economic growth. And that is a prerequisite for successful activation strategies.

OECD predicts: No Malthusian food security crisis anytime soon

Good news it seems! The OECD doesn’t expect a Malthusian food crisis to materialise any time soon.