Business lobbies demand surpulus

There’s no stopping a business lobby moron:

Australian Industry Group chief executive Innes Willox said the budget could afford fiscal stimulus “should the economy fail to pick up steam in the next few months”.

“If there is further slowing of domestic activity, measures to stimulate business investment, address the difficulties small businesses are having accessing credit and to avoid a rise in joblessness will be sensible precautions against the risks of confronting the severe costs of a decline in activity and a sharp lift in unemployment,” Mr Willox said.

Business Council of Australia chief executive Jennifer Westacott, who will release her own reform ideas this week, welcomed the forecast return to surplus but said “more needs to be done to accelerate economic growth so Australians can get ahead”.

“The government has done the hard work and we’re on track for a surplus after a decade of deficits. A surplus is good news for Australians and should not be compromised,” she said.

“Now, our focus should be on driving the economy harder, and the private economy will need to do the heavy lifting.

“The conversation Australia needs is not about short-term stimulus. This is not the problem we need to solve. Instead, we need a national debate about getting the right structures in place to drive business investment and sustained, faster economic growth.”

A surplus and stimulus – the fabled surpulus – is possible. We had that debate in the last election. Labor proposed structural reforms that:

  • wound in property and super concessions that destroy capital productivity;
  • that would have cut taxes and lifted the budget;
  • as well as funding accelerated business writeoffs to promote investment;
  • and increased infrastructure investment.

They lost in part thanks to these same business lobbies condemning them for it.

David Llewellyn-Smith

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.

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Comments

  1. avoid a rise in joblessness

    As if they want to avoid that.

    Jessica Irvine has the right idea:

    a simple “pollution tax”, to be applied per tonne

    For every dollar raised through the pollution tax

    Australian households will receive a full dollar via a “pollution tax rebate”.

    Australian households, too, have been calling out for help with skyrocketing power bills.

    https://www.smh.com.au/environment/climate-change/how-good-is-this-carbon-tax-psst-pm-s-speech-falls-off-the-back-of-a-truck-20191113-p53a9h.html

  2. Surplus = more rate cuts.

    Does the business lobby get a bigger sugar hit from lower rates or fiscal stimulus? Or are the business lobby individuals only concerned about their property investments?

  3. John Howards Bowling Coach

    Willox is the shining example of how the old boys network supports an absolutely useless person through a glittering career all the while having zero idea about business, life, and the world. Here is a man who is actively undermining Australia after what should have been exposure enough to the world to see what needs to be done to build a great nation. It just goes not show how hard it is to blast irrational ideology from a person.