Economic analysis of 2023/24 budget

The government gets one star for allowing the 2022/23 budget balance to improve to a cash surplus (small fiscal deficit), but this budget includes yet more tax and spending and a disappointing lack of serious reform, and the 2023/24 deficit was unnecessary and inappropriate.

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Defending the UK tax cuts

The UK has a new government, and one of their first steps has been to reverse some planned tax increases and make other tax cuts. Great news for British taxpayers and the broader UK economy, but it has sparked controversy as the usual crowd of big-government apologists condemn any policy that reduces the power of politicians.

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John HumphreysComment
Interest rates & recession

Fundamentally, the issues of inflation and recession must be addressed with different types of policy. Inflation can only be addressed through more responsible macroeconomic policy, while sustainable economic prosperity can only be achieved through microeconomic reform that boosts productivity.

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John HumphreysComment
Declining real wages

One of the defining features of the economy over the last year has been the decline in real wages. Nominal wages have increased by 2.6%, but consumer prices have increased by 6.1%. The sad reality is that many working Australians are getting poorer.

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John Humphreys Comment
Incentives matter: Australia's tax policy cannot be based on dodgy statistics

John Humphreys

Journalists are citing questionable modelling in their crusade for higher taxes. Eager to undo one of Australia’s most significant microeconomic reforms in decades, journos are pressuring the government to instead embrace higher taxes.

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