The dangers of neopopulism

Whether it's being sold under the banner of a "New Paradigm", "new centrism", "neopopulism", or a "Future Made in Australia", industrial policy will lead to less growth, insipid labour productivity, and a much poorer and more vulnerable Australia.

Friday Fodder (21/24)

Why we shouldn't worry about migration; interpreting the monthly inflation figures; will AI displace financial market traders; should we worry about the 'pink tax'; and Albo's gift, on our behalves, to PNG's elites.

Australia's demographic dilemma

Australia's migration slowdown will ease housing issues but exacerbate its ageing population and fiscal problems, requiring unpopular entitlement reform and improved fertility rates to sustainably fund old-age benefits.

The return of the Tariff Man

Biden's new China tariffs are driven by politics, not economics or national security. But protectionism tends to beget more protectionism, risking trade wars that could cause significant damage to the global economy.

Friday Fodder (20/24)

The federal government wants to create a big new database to protect us from ourselves; who would an autonomous vehicle choose to save, a pedestrian or its passengers; a tale of two central banks; and the UK election in one chart (it's not looking good for Rishi).

Why real wages had to fall

Real wages in Australia have stagnated because the pandemic made us all poorer; a lack of wage growth just reflects that reality. If we push wages further above productivity, we risk disemployment, a wage-price spiral, and even a painful recession.

Cutting migration won't solve the housing crisis

Peter Dutton claims cutting migration will free up over 100,000 homes and fix Australia's housing crisis. But his numbers don't add up and the impact will likely be minimal. Dutton's playing to anti-migration sentiment rather than addressing the real policy drivers behind unaffordable housing.

Friday Fodder (19/24)

Biden's tariffs are a glimpse into our Future Made in Australia; the Americans are an innovative bunch (no wonder they're so productive); who benefits from the welfare state; the post-pandemic war on prices; and how the Jevons Paradox is shaping artificial intelligence.

Let's not make the housing crisis even worse

The government's policies are unlikely to solve Australia's current housing crisis, which stems from both long-term zoning issues and a recent spike in construction costs. But it could be worse - at least they've avoided reckless ideas like rent freezes, which would devastate the housing market.

An independent RBA is better than the alternative

An independent Reserve Bank of Australia is crucial for economic stability and low inflation. However, a big-spending Budget and attempts to politicise the central bank would jeopardise its independence, leading to higher inflation.