Study Links Inflation, Private Sector Stagnation to Government Spending Surge

Published on September 5, 2024

New research from the Centre for Independent Studies (CIS) reveals that government spending is fuelling inflation, while private sector growth has stagnated, signalling a potential structural shift in Australia’s economy. The findings come against the backdrop of Australian Bureau of Statistics data confirming an increase in government spending by 1.4 percent. In a research paper titled Government Spending and Inflation, CIS senior fellow Robert Carling argues that current high levels of public demand, even if future growth is constrained, will cause ongoing detrimental economic effects. “The Reserve Bank has highlighted the high level of aggregate demand relative to the economy’s potential output as the fundamental cause of persistent inflation,” Carling said....

Continue reading on website
Other news

No Plan Yet to Cut Interest Rates: Reserve Bank of Australia

September 5, 2024
Central bank Governor Michele Bullock has made it clear that the Reserve Bank of Australia (RBA) is not thinking of cutting interest rates anytime soon.In her address on Sept. 5, Bullock said that although inflation has dropped it was “premature to be thinking about rate cuts.”She maintained the policy will need to be “sufficiently restrictive until RBA is confident that inflation is moving sustai

From Elf Shots to Superfood: The Journey of the Humble Nettle

September 5, 2024
The use of nettle has been recorded as far back as the Bronze Age (3,000 BC–1200 BC).Between 58 BC and 45 BC, there are records of nettle’s stinging properties, assisting Julius Caesar’s troops in staying awake and alert during the night.Imagine pricking yourself with a plant just to stay alert. But then, soldiers weren’t exactly known for their love of beauty sleep.1 Cup, 37 CaloriesNettle isn’t