We’re all public servants now

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The Australian Financial Review’s John Kehoe has published an extraordinary report, based on analysis from the Centre for Independent Studies (CIS), showing that spending by federal and state governments on initiatives such as the NDIS, aged care, and child care has reached its highest level since World War II.

As a result, more than half of Australians now derive over half of their income from the government through public-sector wages, welfare benefits, or subsidies.

“This dependence poses a formidable opposition for any politician trying to curb the growth in public expenditure”, CIS senior fellow Robert Carling said.

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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.