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Older, bigger, slower growing, more diverse. Living standards at risk of going backwards. These were the key takeaways from the latest Federal Intergenerational Report (IGR), writes Dr Liz Allen. The intergenerational bargain or contract, which implicitly suggests that the country handed to each subsequent generation is the same, if not better, than the socioeconomic conditions enjoyed previously, has been eroded. Increasing or maintaining living standards can no longer be guaranteed. Australia’s dumb luck has run out.
The 2023 Intergenerational Report highlights the risk that climate change poses to Australia and its economy, including escalating insurance costs and threats to agriculture, tourism and infrastructure. It emphasises the negative effects that extreme heat can have on certain forms of work – notably those that involve physical exertion and where workers are exposed to ambient heat outdoors. Professor Lauren Rickards and Dr. Todd Denham explore the other ways that climate change will affect workers, productivity and the economy.
Read more Opinion article March 9, 2023Most economists predict that Australia will manage to avoid a recession this year. However, it will be a tough year financially for most households as costs blow out for non-discretionary items. CEDA analysis shows that for low-income households, rent or mortgage interest costs are set to exceed 40 per cent of average disposable income. These households will need to cut discretionary spending by over 10 per cent in order to absorb increases in the cost of essential items without their overall spending increasing more than income. The cost of living crunch will flatten Australia’s economic growth, as household consumption growth is set to significantly slow this year.
Read more Opinion article February 20, 2022In our third year of the pandemic, Australia will head to the polls to elect a Federal Government and in contrast to the 2019 election, a focus on jobs and growth may not be enough to win voters over. It will be a test for Scott Morrison, the first Prime Minister to run a full term in nearly a decade – no small achievement considering Australia has had seven Prime Ministers in 10 years – and he seems set on holding the position until the last possible minute.
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