A great attraction of my job is that I'm paid to offer gratuitous advice to everyone from the prime minister down. So step up, Malcolm, it's your turn.
Everyone has high hopes that Malcolm Turnbull will be the successful, long-lasting prime minister so many of us have been seeking. Business people are hoping he'll deliver the economic reform we need to rejuvenate and energise the economy.
Though his performance won't fail to...
Monday, October 26, 2015
Saturday, October 24, 2015
Timid financial changes get Turnbull started on reform
Since the election of the Coalition government we've heard a lot more talk about the need for micro-economic reform than we've had actual reform.
Indeed, the main "reform" we've had so far has been abolition of the previous government's chief reforms: the carbon tax and the mining tax.
But all that changed this week, with the announcement of the Turnbull government's response to the recommendations of the Murray inquiry into...
Wednesday, October 21, 2015
It's fine to be well-off so long as you pay your whack
It's no doubt true, as many commentators are saying, that Labor has won itself no points by reminding us how wealthy Malcolm Turnbull is. We hear frequently about "the politics of envy", but actually there isn't a lot of it about these days. You've done well? Good luck to you.
In any case, I think there's huge goodwill towards Turnbull. Everyone can see how super smart he is, and we're hoping he'll use that smartness to make...
Monday, October 19, 2015
Banks ponder their next game with interest
Actual mortgage interest rates have fallen from 7.1 per cent to 4.7 per cent over the past five years, but let one bank – Westpac – increase its rate by 0.2 percentage points and the righteous indignation knows no bounds.
It may not be the end of the world, but it's certainly the end of the housing boom as we know it. Well, maybe.
But outrage is a poor substitute for understanding. Why did Westpac move? Why now? Will the other...
Saturday, October 17, 2015
Nitty-gritty of unemployment shows small improvement
Why does unemployment increase? For a lot more reasons than you probably imagine.
It's a good question to ask this week when the media informed us that, last month, the number of people in employment fell by 5000, the number unemployed fell by 8000 and the proportion of people participating in the labour force fell from 65 per cent to 64.9 per cent, but the rate of unemployment was unchanged at 6.2 per cent.
I could devote...
Wednesday, October 14, 2015
Moratorium on new coal mines makes economic sense
What are we meant to do about coal? For some time now it's looked like Australians face a painful choice between doing the right, moral thing by the rest of the world and continuing to make a living from our rich endowment of natural resources.
The burning of coal is by far the biggest source of the greenhouse gas emissions that are causing climate change. Australia is one of the world's biggest producers of coal.
Greenies...
Monday, October 12, 2015
Competition does have its drawbacks
Competition is billed by economists as a wonderful thing, the invisible restrainer of a capitalist economy and essential to ensuring consumers get a good deal.
But many economists aren't as conscious as they should be that competition has costs as well as benefits.
It's true, of course, that monopoly is usually a terrible thing, allowing arrogant, inflexible behaviour on the part of producers, with little pressure on them to...
Sunday, October 11, 2015
Why the Trans-Pacific Partnership is no game-changer
Think you know a bit about economics? Try this quick quiz: what's your impression of the Trans-Pacific Partnership Agreement reached between the United States and 11 other Pacific Rim countries, including Australia, this week?
Would you say it is: a) a gigantic foundation stone for our future prosperity that will boost growth, create jobs, raise living standards and increase productivity; b) a terrible deal that advantages big...
Friday, October 9, 2015
MUST WE DESTROY JOURNALISM IN ORDER TO SAVE IT?
Talk to the New News conference, Wheeler Centre, Melbourne Friday, October 9, 2015In the last phase of my career as a journalist - I’ve just published my memoirs, A Life among Budgets, Bulldust and Bastardry - I, like many journos, have become greatly exercised by the challenge that the digital revolution presents to the continued existence of “quality” or “serious” journalism - journalism that has a serious intent, even though...
Wednesday, October 7, 2015
How digital disruption allows higher prices
Do you think much about the process involved when you decide to buy something some seller is offering you? If you're like most consumers, probably not. But the businesses doing the selling do, which ought to be a warning.
And the study of exchange – the buying and selling of goods and services – is the central element of economics. Economists long ago concluded they had it all figured.
Trouble is, the digital revolution is...
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