When Treasurer Josh Frydenberg joined the podcast in December, the outlook was optimistic. Whereas the forecast deficit was huge at almost $200 billion, it had been revised down and the prospects for progress and employment revised up.
Frydenberg mentioned then: “Australians go into Christmas with actual trigger for optimism and hope”.
Politics with Michelle Grattan: Treasurer Josh Frydenberg on promising funds figures
However the financial local weather now’s bleaker. And really unsure.
With the September quarter set to be unfavourable, and the December quarter depending on New South Wales’ capability to get on prime of the virus, a second recession can’t be dominated out.
However becoming a member of The Dialog podcast this week, Frydenberg appears for some silver linings. He says a possible contraction of “about 1.5%” within the September quarter can be significantly much less drastic than the 7% contraction the economic system noticed within the June quarter of final yr.
“Shopper spending is about 30% larger immediately than it was in March and April final yr.
“Shopper confidence, equally, is round 30% larger than it was again then”.
And the newest jobs numbers had proven that greater than 200,000 individuals had come off unemployment advantages since that JobKeeper ended.
“So I’m assured that the underlying fundamentals of the Australian economic system [are] sound.”
With the New South Wales lockdown greater than more likely to proceed into a 3rd month and different lockdowns across the nation, the federal government has remained steadfast in its resolution to not reinstate JobKeeper, relying as a substitute on COVID catastrophe funds to help staff.
A criticism levelled towards the JobKeeper program was that cash was wasted going to corporations which ended up making earnings, after which not returning the funds.
The treasurer calls JobKeeper “a outstanding success” which “restored confidence instantly after it was introduced.
“If we had mentioned on the time, , Grattan Enterprises must pay all of it again if one way or the other they obtained by the disaster, the chance would have been that[…]some companies wouldn’t have taken that cash and due to this fact would have let their workers go.”
As soon as borders are open, and we’re again to some form of normality, Frydenberg appears to migration to help within the financial restoration, and in countering “the impacts and penalties of an ageing inhabitants” outlined on this yr’s Intergenerational Report.
Frydenberg helps a migration programme which strikes “the proper stability”.
A program which “goes to our humanity with the resettlement of refugees[…]goes to the wants, the speedy wants of the economic system with expert staff, and[…] goes to the concord of our society, with household reunions and the like.”
A Checklist of Methods to Die, Lee Rosevere, from Free Music Archive.
Michelle Grattan doesn’t work for, seek the advice of, personal shares in or obtain funding from any firm or group that may profit from this text, and has disclosed no related affiliations past their educational appointment.