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In a Q&A after Tuesday’s address to ACOSS, assistant RBA Governor, Guy Debelle, admitted point blank that lifting Newstart would provide the economy with stimulus:
Guy Debelle: “Newstart has been constant in real terms for the past five or six years. Sorry, 25 years… If those people got higher income, would they spend it? Probably yes”.
Moderator: “How much would it benefit the economy”?
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.