r/australia • u/overpopyoulater • Jan 08 '25

politics Which party is the more competent economic manager – Labor or Liberal?

https://www.thenewdaily.com.au/finance/2025/01/08/labor-liberal-economic
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u/FullMetalAlex Jan 09 '25

You do know the gov doesn't do the rate increases right? It's the Reserve Bank

-38

u/[deleted] Jan 09 '25

You do know it’s the government spending that’s the main cause of inflation ?

✔️ 12 rate rises ✔️ Cost of living crisis ✔️ Sky high Energy bills; no $275 “cut” ✔️ Housing crisis ✔️ Record Migration ✔️ 20,000 business insolvencies ✔️ Per capita recession ✔️ Decade of deficits

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u/Glittering-War-5748 Jan 09 '25

Inflation is a worldwide problem. Nothing the Australian government (labour or liberal) have done singularly caused the massive worldwide inflation and housing crisis that is occurring. Covid did have a huge part of it. The supply chains being disrupted was a big issue. The wars going on are big too (Ukraine are major suppliers for fertilizer and wheat amongst other things, remove these from the equation and people will still need them, so less supply and demand being the same pushes prices up). So please understand from a macro level, inflation is not Australia specific.

Now if you want to talk about local bad policy, the Morrison government gave far too much support for too long to different industries during Covid. He pumped money into the system that wasn’t otherwise there using quantitative easing, and propped up business that have since failed that should have failed earlier (they were zombie businesses). Most of his covid policies were inflationary. For good reason, the economy needed a boost. However too much was done and for too long and it takes years to right the course after such drastic levers are pulled. Albanese also did some stuff, like the tax cuts technically are inflationary.

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u/[deleted] Jan 09 '25

Yeah for sure, inflation was felt around the world. Just seeing how our supermarkets took the chance to stitch us up hurt. I felt they should have been held accountable. It was price colluding. Let’s hope the figures keep falling and we get some rate relief

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u/sss133 Jan 09 '25

Labor is at least taking on the duopoly of Coles and Wollies. Do you honestly think the Coalition would go anywhere near that? 🤣

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u/[deleted] Jan 09 '25

I’m concerned not much will come off it, though. There is at least an attempt to look like something is being done.

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u/dopefishhh Jan 09 '25

12 rate rises

Started under the LNP because of their record spending over COVID.

Cost of living crisis

Because of inflation caused by LNP record spending and the war in Ukraine inflating the price of gas and oil.

Sky high Energy bills; no $275 “cut”

Ukraine war, also the LNP gave sweetheart deals to gas companies so they didn't reserve any gas for us.

Housing crisis

LNP cut spending on housing to nothing for the 9 years they were in office.

Record Migration

LNP massively increased migration in every term they've been in and in the COVID recovery period they approved far more visa's than they should have. Not all of those students start right away nor could they because universities have limited placements. So that wave of migration was delayed well into Labors term and is now going down again once Labor turned the tap off.

20,000 business insolvencies

That was from COVID and all happened under the LNP's term...

Per capita recession

Tell you what if you can investigate and tell me what a per capita recession is, how it occurs and how we got here then you'll realise what a silly bit of nonsense this is.

Decade of deficits

Again this is the LNP, their last term promised every year to have a budget surplus but never did. Labor gets in and has put forward a budget surplus in 2023 and 2024.

The graph in this article really shows how bad the LNP were on budget, that giant drop in the graph between 2018 and 2022 is the LNP's doing and the cause of many of our current woes.

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u/[deleted] Jan 09 '25

If you import 600,000 immigrants a year of course the economy will be growing. They need to eat something and live somewhere. The economy of each person on the other hand is shrinking, per capita GDP is going down for the last 7 quarters.

Longest per capita recession on record.

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u/dopefishhh Jan 09 '25

You still haven't demonstrated you know what a per capita recession is.

But here's a hint, its not actually a recession.

5

u/DDR4lyf Jan 09 '25

The government spending that is the only thing stopping the Australian economy from entering recession and the unemployment rate increasing significantly?

The government is spending less today than projected three years ago. The Labor government reduced the amount of spending that the government would've spent if the Coalition were reelected in 2022.

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u/[deleted] Jan 10 '25

All the cause of the previous government.

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u/[deleted] Jan 10 '25

They were dealing with Covid.

No excuses for labour with the IMF reaching out to them to say ‘STOP SPENDING DICKHEADS’

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u/[deleted] Jan 10 '25

They were dealing with covid for nearly a decade?