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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Why conventional economic theory is wrong about technological change
Society as a whole has a critical interest in the direction of technological innovation. This cannot be left uniquely to a limited group of capitalist bosses. Consultation with all the key interest groups and government regulation have a critical role to play in ensuring future economic growth and a fair go for all. Continue reading »
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The impact of AI on the labour market and equality
In future AI is the new technology which is likely to have the greatest impact on our economy and our society. But how AI is used and developed is a choice, and so far AI has been predominantly focused on continuing the emphasis on automation. To realise the full potential of AI and minimise its Continue reading »
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Sharing the benefits of technological progress
This is the first of three articles discussing how the benefits of technological progress are shared, and thus determine the distribution of income and influence our economic and social structures. This first article focuses on how these benefits have been shared historically. Continue reading »
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Housing affordability and equality: part 2
Yesterday, Part 1 of this article discussed the decline in housing affordability and the consequent increase in wealth inequality. Today, Part 2 will discuss possible policies to restore housing affordability in the interests of a more equal and cohesive society. Continue reading »
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Housing affordability and equality: part 1
The first part of this article explores how home ownership has become almost impossible for most aspiring first-home buyers and how that is creating a much more unequal distribution of wealth. A second part tomorrow will discuss the policy options to restore home ownership and thus a more equal and cohesive society. Continue reading »
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What does Dutton stand for?
Dutton regularly proclaims what he opposes, but what he will do in terms of new policies mostly remains a mystery or alternatively will not work. Continue reading »
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The future of tax reform
There are recurrent calls for tax reform, but it is typically too difficult to achieve a consensus. However, the necessary action to reduce carbon emissions by introducing a tax on carbon emissions could result in most people being better off and thus achieve broad support. Continue reading »
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Restoring Australia’s prosperity by becoming a superpower
The debate about climate change is far too often in denial. It needs to change to focus on the positives of how Australia can become a Superpower based on green energy and products that rely on green energy. Continue reading »
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US Intervention to end the war in Gaza
What is almost universally agreed is that an enduring peace settlement for Palestine must be based on a two-State solution. However, getting that settlement accepted will require active intervention by the US to broker the deal. Continue reading »
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Labor’s rejigged Stage 3 tax cuts benefit 84% of taxpayers
After due consideration of the main criticisms, the Labor Government’s rejigged Stage 3 tax cuts seem to be a good way of responding to the cost of living crisis without adding to the Budget deficit and inflation. Continue reading »
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Is China an economic threat?
America insists on treating China as an economic threat, but the reality is that China’s economic advancement has benefited us all. Instead, the stagnation of wages and manufacturing job losses experienced by Trump supporters in the US largely reflects the impact of technological change. Continue reading »
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‘Exceptional’ country: Where is US leadership on Palestine?
The US proudly proclaims its exceptionalism and leadership of the free world, but in the latest Israeli-Palestinian flareup US leadership has been absent. A lasting peace settlement will require the US to take the lead in pushing forward the widely supported two-state solution. Continue reading »
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The Albanese Government’s economic management and the cost-of-living crisis
The Albanese Government’s economic management has been very competent, but unfortunately also marked by a lack of ambition in tackling the challenges facing Australia. Continue reading »
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How to end the war in Gaza
It is urgent to end the loss of life and destruction in Gaza, but as the joint Statement by the Prime Ministers of Australia, Canada and New Zealand recognises, a sustainable ceasefire will require agreement to a balanced set of conditions consistent with eventually achieving a lasting peace based on a two-State solution. This is Continue reading »
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The outlook for interest rates
The Reserve Bank is widely expected to increase interest rates further. However, what is now critical to achieving the Bank’s inflation target is the future increase in labour costs, and this may come down sufficiently without any further interest rate rises. Continue reading »
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The cost-of-living crisis: How should the Government respond?
Living standards have fallen recently. The Albanese Government has responded with targeted assistance, but the policy options to alleviate the damage for working families are limited, especially in the short run. However, one readily available policy option would be to reshape the Stage 3 tax cuts due to take effect next July. Continue reading »
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Gaza: Israel is winning the battle but losing the war
As was to be expected, Israel is winning the battle for Gaza, albeit at an enormous cost in lives. But what are Israel’s and its backers’ plans for winning the peace, as without an enduring peace settlement the war can never be won. Is a US-led, UN mandated Trusteeship for Palestine the way forward? Continue reading »
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The structural challenges facing the Chinese and American economies
The two major economies, China and America, have severe structural imbalances between their savings and investment, which could significantly damage their medium-term growth prospects, with consequences for the rest of the world. Continue reading »
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Australia’s fiscal challenge
Productivity growth will be less than projected in the Intergenerational Report, the budget deficits will be worse, and the Government should be setting the scene for raising more revenue. Continue reading »
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The APS: Balancing responsiveness and independence
Since the Robodebt saga there have been many calls for a more independent public service that can be trusted to provide competent advice frankly and fearlessly. In that case a key issue is how departmental secretaries are appointed and dismissed. Continue reading »
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Pearls and Irritations: A unique source of independent comment and analysis
Pearls and Irritations is a unique source of independent comment and analysis. Readers know that they will learn more and have a better and different understanding of important policy issues than is available from the mass media. Continue reading »
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The RBA is on a knife-edge between recession and inflation
Monetary policy operates with a lag. The pain from increased interest rates is only now starting to really bite. However, the substantial increase in interest rates is reducing demand and thus bringing inflation down. While on the other hand, further interest rate increases add to the risk of a recession. It is time therefore to Continue reading »
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The cost of living crisis – so what would Dutton do?
Peter Dutton incessantly declaims about the cost of living crisis, blaming the government. But what would he do instead? Continue reading »
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Robodebt and the APS
The Robodebt scandal reflects badly on the Australian Public Service generally, and not just on those immediately responsible. Continue reading »
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Corruption and the expenditure of public funds
Although Gladys Berejiklian’s intervention to fund projects in her boyfriend’s electorate may not have been illegal, it should have been. The legislation and rules governing the financial management of public programs should be tightened to prevent such pork barrelling. Continue reading »
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Why the RBA should pause interest rate increases
Inflation is starting to come down. The main reason cited for a further increase in interest rates is the fear of a wage-price spiral. But this is no longer likely. Instead, it is time for a pause in interest rate rises to better assess the future economic outlook. Continue reading »
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Australia’s international strategy
America is no longer the dominant hegemon in our region. In its place Australia can and should play an important role in establishing a true multipolar system of governance. But that will first require Australia to resolve the present contradiction between our foreign and defence policies. Continue reading »
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Why is America so reluctant to acknowledge China’s economic power?
The statistical evidence clearly shows that China is the world’s number one economy. Unfortunately, the US and many commentators are unwilling to acknowledge that reality, but the future stability of the region depends on acceptance that we are living in a multipolar world. Continue reading »
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A competent budget that advances a Labor agenda
Labor has produced a responsible Budget that balances the need to advance traditional Labor priorities while also bringing inflation down. But there remains more to do. Continue reading »
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Will Labor’s Budget prioritise public services and a caring society?
The biggest choice facing this country is between poor public services and inadequate government income support or more taxes. Unfortunately, I fear that next week’s Budget will seek to avoid this choice. Continue reading »
