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2010-09-25

Treasury needs a better framework

Comments on Michael Stutchbury “Briefing spells out the reform agenda needed”, 25/09/2010, http://www.theaustralian.com.au/news/world/briefing-spells-out-the-reform-agenda-needed/story-e6frg6so-1225929105339
The point on NBN is well made, although the problem is whether the government will heed that at all.

The point on population is confusing: why is 36 million inevitable? Is that driven by gross growth in GDP headline, or based on productivity growth, or welfare maximising for all Australians?

It appears unclear what framework Treasury has or uses to make that statement. That is unsatisfactory.
 
While it is understandable for businesses to argue for a big Australia or for higher immigration because it will be in businesses' interests if there is more labour supply.
 
But that is not necessarily in the interests of Australians as a whole.
 
Australians need better information and be informed correctly.
 
To do that, we need a well specified framework to model the effects, both on businesses and on labour, as well as other people.

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