Our Clive says no to welfare cuts

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From the AFR:

Mr Palmer, whose party will control the balance of power in the Senate from July 1, said they would oppose the plan to increase the pension age, the Medicare co-payment and the six-month wait for the dole for young people.

Onya Clive, except for the pension age…

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That said, I do have one big issue with Clive’s approach. If you are going to say no to these cuts, then you have to provide an alternative, either in the form of cuts elsewhere or increases in taxes.

Simply opposing Budget savings measures without providing alternatives ignores the very real structural pressures facing the Budget from falling commodity prices and an ageing population. There can be no “free lunch”.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.