Writer
Michael Keating
Michael Keating is a former Secretary of the Departments of Prime Minister and Cabinet, Finance and Employment, and Industrial Relations. He is presently a visiting fellow at the Australian National University.
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Facing a global economic slowdown, the Labor government will need a new strategy to rise to the economic challenges ahead
The Albanese Labor Government has had a very good first six months, however the challenges that lie ahead will be much more demanding. The Government needs to articulate its vision of how our social cohesion depends upon creating an Australian society that is caring and with reasonable equality of opportunity as the foundation for why Continue reading »
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Morrison’s self-appointment to administer six departments
Morrison’s self-appointment to six portfolios says a lot about his contempt for the quality and integrity of decision making under his government. The response by PM&C officers, who were in the know, also raises questions about how adequately they exercised their responsibility for good government. Continue reading »
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Employers cry wolf once again
Low wage growth has held the Australian economy back. Contrary to the employer’s scare campaign, the Government’s proposal to facilitate multi-employer bargaining offers the prospect of some improvement, especially for those employees whose bargaining position is weakest. Continue reading »
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Budget Repair: Tax increases or expenditure cuts?
The Treasurer wants a national conversation about how best to repair the Budget. But that conversation will only help if it is based on a realistic analysis of the difficulties involved in achieving lower spending and therefore why tax increases must be on the agenda. Continue reading »
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The Albanese Government’s first budget: so far so good
As best can be judged at this point of time, this Budget gets the balance right between the need to bring inflation down while avoiding a recession. But many difficult decisions lie ahead. Continue reading »
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What do we need from next week’s Budget? An increase in tax revenue
The biggest budgetary challenge is to correct the inadequate funding of essential services. Hopefully this Budget will help initiate the necessary national conversation to correct this fundamental defect. In short, a significant increase in tax revenue is required. Continue reading »
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What can we expect following the Jobs and Skills Summit?
In contrast to the policy vacuum left by the previous Morrison Government, Labor’s Jobs and Skills Summit has paved the way for Australians to work constructively together on the challenges facing the labour market and the economy. For reasons of space, this present review focuses on the major policies announced at the Summit and their Continue reading »
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Many jobs summit ideas for lifting wages don’t make sense – upskilling does
Treasury’s issues paper for the jobs summit says fair pay and job security “strengthen communities, promote attractive careers and contribute to broad-based prosperity”. Continue reading »
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Monetary Policy: How far will interest rates need to rise and how fast?
In response to higher inflation since the beginning of May the Reserve Bank has aggressively increased interest rates, albeit from an exceptionally low level. From here on, however, a more cautious approach is needed. Continue reading »
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A way forward with Labor’s climate change legislation
Effective action against climate change requires Labor’s legislation. Hopefully the compromise necessary to pass this legislation can be achieved if the target set is for the minimum reduction in carbon emissions required. Continue reading »
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Rising interest rates – will there be a soft landing?
Inflation is outside the target zone in all developed economies. Central banks are responding by increasing interest rates. But the critical question is whether monetary policy can bring inflation down without causing a recession. Continue reading »
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The Outlook for Living Standards: Part 3
Previously Part 1 of this article assessed the impact on living standards from surging prices relative to wage growth, and rising interest rates. Yesterday, Part 2 considered what the new Labor Government can do to lift the rate of wage growth relative to prices. Today, Part 3 discusses how best to respond to the two Continue reading »
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The Outlook for Living Standards: Part 2
Yesterday Part 1 of this article assessed the impact on living standards from surging prices relative to wage growth, and rising interest rates. Today, Part 2 will consider what the new Labor Government can do to lift the rate of wage growth relative to prices, and tomorrow Part 3 will consider how best to respond Continue reading »
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Michael Keating-The Outlook for Living Standards: Part 1
A critical challenge facing the new Labor Government is its response to the upsurge in inflation and the threat to living standards. In Part 1 today this article discusses the dimensions of this challenge. Parts 2 and 3, tomorrow and the next day, will consider possible government responses. Continue reading »
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The future budget outlook
As the Treasury Secretary, Steven Kennedy, made clear last week the future Budget outlook is exceptionally difficult. He noted the “pressures to raise more revenue over time” and saw no scope to lower taxes in future. Continue reading »
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A comparison of Labor and the Coalition’s policies to assist first home buyers
Australia has a problem of housing affordability, but it is mainly concentrated among the poorest young families. Labor’s housing policies are better directed to improving their equality of access, but neither of the major political parties’ policies are adequate to the task. Continue reading »
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Why this election campaign is so disappointing
Proposals for policy reforms in this country are most often hamstrung by the lack of government revenue required to implement them. Unless this impediment is overcome, many very worthwhile proposals for reform will continue to be ignored. Continue reading »
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Wages and the cost of living
An increase in the wages of the lowest paid employees, so that they can keep pace with the cost of living, is unlikely to lead to higher unemployment. Instead, it may well help improve overall economic outcomes. Continue reading »
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Government Integrity and an ICAC
There is a legislated process prescribing how government grants should be administered, but it clearly is not being followed and we need an integrity commission to enforce it. Continue reading »
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The Coalition is guaranteeing essential services and lower tax. We can’t have both
In the midst of Labor’s campaign about the cost of living, the Coalition has zeroed in on one of those costs – taxes – and guaranteed to stop them rising. Continue reading »
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The funding of essential services
The key purpose of a government’s budget is to propose the spending on essential government services and how that spending will be financed. Judged by this standard, the latest Budget is completely inadequate and belies the claims of the Morrison Government to be competent economic managers. Continue reading »
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How competent is Scott Morrison as a manager of government business?
Scott Morrison wants the election to be about competence, but an examination of his record suggests that he is not capable of delivering good government. Continue reading »
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The deterioration in housing affordability and its impact on living standards
The huge increase in dwelling prices was made possible by ultra-low interest rates. Now the prospective rise in interest rates is likely to have a much bigger impact on many borrowers future living standards than previously experienced, and the demand for rental accommodation is also likely to increase faster than in the past. Continue reading »
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Stagnating living standards under Morrison
Living standards have stagnated since the Coalition was elected to government, but in the Budget it is now forecasting an improved performance. How likely is this? Continue reading »
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Whither the Australian federation
In the absence of Commonwealth leadership, our federation is not working well. That comes at a cost to good government, and is impeding service delivery and any future reform agenda. Continue reading »
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The Grattan Institute’s policy priorities – what do they cost?
The Grattan Institute’s proposed policy priorities deserve wide support. However, how to pay for them is not adequately addressed, and their implementation would require the incoming government to raise additional revenue. Continue reading »
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What we can expect from the coming Budget
It is to be feared that the forthcoming budget will be a mixture of spending bribes and unsustainable tax cuts. This is not what is needed to restore economic stability and the provision of essential government services. Continue reading »
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This election needs policies that address cost of living, not just unemployment
Scott Morrison wants us to believe that low unemployment means the economy is fine, but there are other structural economic issues at play too. Continue reading »
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With a tricky Budget challenge coming up, winning an election may be easy part
Whether it likes it or not, the party that wins the election will most likely be forced to raise additional taxation revenue not long afterwards. Continue reading »
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How modern technology could bring democracy to a crossroads
Advances in technology have resulted in employment and wage dislocations that are polarising society and undermining trust in political institutions. Continue reading »
