Opinion: Like election promises, many budget forecasts never come to pass | 1RossGittins
recovery in the labour market are seeing household consumption increase at its fastest pace in more than two decades” while “temporary tax incentives will drive theincrease in business investment since the mining boom, with non-mining investment expected to reach record levels”.economic recovery”, the rate of unemployment is forecast to reach 4.
Without such growth you don’t get sustained strong growth in consumer spending and, hence, adequate growth in the economy overall. Thus the economic managers have become so desperate they’re trying to create a shortage of labour, as the only way of forcing employers to resume awarding decent pay rises.
But, assuming it happens, that makes it sound a lot better than it is. Comparing the rise in the wage price index with the rise in the consumer price index,Since that’s in the past, we know it actually happened. Turning to the budget’s revised forecasts, real wages are expected to fall by a further 0.5 per cent this financial year, before rising by 0.25 per cent in the following year, then by 0.5 per cent the next year and by 0.75 per cent in 2024-25.
But a rebound gets you quickly back to square one. It doesn’t necessarily mean that, having rebounded, you’ll go on growing at a faster rate than the anemic rate at which we were growing before the pandemic.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
NSW budget deficit blows out to almost $20b because of lockdownThe NSW budget deficit blows out by more than double what was forecast less than six months ago because of money spent on JobSaver and COVID support.
Read more »
Australia's projected 2021/22 budget deficit revised slightly to $99.2 billionTreasurer Josh Frydenberg is forecasting a slightly smaller budget deficit for the 2021/22 financial year, while predicting strong growth and a sharp fall in the unemployment rate.
Read more »
Budget revenue surge but spending plans stashed away ahead of 2022 electionTreasurer Josh Frydenberg has revealed a $106 billion increase in budget revenues - but the bottom line has only improved $2.3 billion as the government prepares for election spending.
Read more »
The MYEFO budget update promises a jobs bonanza, but look for the fine printANALYSIS: The half-yearly financial check-up on the Australian economy is being delivered on Thursday. Here's what to expect.
Read more »
South Africa and the UK report most ever COVID-19 cases as US deaths pass 800,000South Africa and the United Kingdom have both reported a record high number of new daily COVID-19 infections, while the United States has surpassed 800,000 deaths from the virus.
Read more »
MYEFO is forecasting a long-awaited rise in wages, but it doesn't mean it will happenIt's tough making predictions, especially about the future and even more so during a pandemic. But Josh Frydenberg and Treasury have had another crack in MYEFO, writes Ian Verrender.
Read more »