House Speaker McCarthy wants to put the US on a path to a balanced budget as debt ceiling negotiations begin with President Biden. Here’s why it won’t be easy to repeat what Bill Clinton accomplished.
Peter Martin, Crawford School of Public Policy, Australian National University
Chalmers was careful during the campaign to reject the idea of a tax-to-GDP cap. He is going to have to raise much more tax, and start a conversation about how – beginning with next week’s budget.
Whether a budget should be in surplus or deficit depends on the circumstances of the time. Gillard didn’t recognise it, Abbott didn’t recognise it. At last the message is getting through.
Politics with Michelle Grattan: Mathias Cormann and Jim Chalmers on the mid-year budget update
The Conversation, CC BY29,7 Mo(download)
The figures indicate a worsening economy, but the government has sought to put a positive spin on the situation, saying the Australian economy is showing resilience.
Peter Martin, Crawford School of Public Policy, Australian National University
Every one of the 13 economists surveyed by The Conversation thinks more stimulus is needed. None think it should all come from the Reserve Bank. Most think the budget surplus can wait.
With a relatively low debt to GDP ratio, Australia was never at risk of becoming Greece. But Germany, with negative interest rates and scant prospects for economic growth, is an open question.