Evatt Journal Vol. 15, No. 3, June 2016
Jobs and growth: Turnbull's mirage
Malcolm Turnbull is pinning his hopes for the forthcoming election largely on economic imagery. He wants to be seen as 'a safe pair of hands' committed to producing more jobs and growth in the Australian economy. But what lies behind the smooth imagery? Effectively just one main policy -- to cut the business tax rate. It is a huge gamble which would see the government collecting about $50 billion less revenue over the next 10 years.
Will this policy actually benefit the Australian economy? Frank Stilwell says there are nine reasons to think not.
The Wealth of the Nation: New Evatt report
Australia as a whole has become much wealthier since 1970, with the total stock of capital growing about twice as fast as national income during the years since then. But inequality has markedly increased during this same period, and continues to increase. Currently the poorest 40% of Australian households have effectively no wealth at all: about half of them actually have negative net wealth because of their personal debts. At the opposite pole, the wealthiest 10% of Australian households have more than half the nation's total wealth. The Top 1% of households alone has at least 15 per cent of the nation's wealth. This affluent elite – the Top 10% and especially the Top 1% – is getting cumulatively richer, not only relative to poor households but also, significantly, in relation to the next 50% of households. Two fault lines are widening – between the bottom 40% and the rest, and between the Top 10% and the 50% in the middle. Dealing with this situation is perhaps the biggest challenge facing our political leaders today.
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