Too late, the hero, Albo:
Anthony Albanese is preparing to release a new cost-of-living package that will move beyond existing energy bill subsidies, as the prime minister attempts to reset the government’s political fortunes in the new year.
Treasurer Jim Chalmers and Treasury are scheduled to deliver final advice to the prime minister and his cabinet colleagues early this week on cost-of-living options, which will need to balance the public’s expectations for help and avoid fuelling inflation.
Therein lies the first problem. Asking Jim “Chicken” Chalmers to clean up his mess is oxymoronic.
By late last year, 40% of the CPI surge was what MB describes as “Albofaltion”. This is the direct result of two enormous macro blunders by the government.
- failing to contain the Ukraine War profiteering in energy soon enough and
- unleashing mass immigration upon an already tight rental market.
I won’t pretend the following chart is precise. It is roughly correct at the headline level, but the spillovers from the energy shock in particular, mean it is very likely an underestimate:
In short, without Albolation, the CPI would have closed 2023 near 3%, interest rates would be much lower and about to tumble.
Now, Albo has discovered subsidies as a way to cover up his blunders.
So he’s going to spend more of your taxpayer money on subsidising the rorting gas cartel in energy and gouging specufestors in property to bring down bills for punters.
To describe this as economic mismanagement just doesn’t quite say it.
