Invest
10-step plan to safeguard the economy
As the Australian economy experiences tremendous change with the likelihood of recession growing, a university academic has come up with a 10-point plan to help safeguard the national economy.
10-step plan to safeguard the economy
As the Australian economy experiences tremendous change with the likelihood of recession growing, a university academic has come up with a 10-point plan to help safeguard the national economy.
According to the University of New South Wales professor of economics Raja Junankar, younger workers and women are likely to face some tough times ahead as they are more likely to work in casual or part-time positions.
“Casual workers will also have to carry the financial burden of going without pay for two weeks if they need to go into self-isolation,” Professor Junankar said.
The professor believes women are more likely to be affected due to working cash-in-hand roles, casual and part-time work due to family commitments.
“While it is a choice for many women to take up part-time work to spend more time with family, we note that the under-utilisation rate in Australia has gone up by 14 per cent even if unemployment has been hovering around 5 per cent.”
“This increase in the under-utilisation rate means that there are more unemployed people who are actively seeking employment,” Professor Junankar said.
What more can be done to safeguard the economy?
To protect vulnerable workers, Professor Junankar suggested the following 10-point plan to prevent a recession from occurring:
- Lower taxes on lower-income groups – as lower-income groups have a high marginal propensity to consume, it would lead to a significant expansion in consumption expenditures.
- Invest heavily in renewable energy such as solar panels and solar batteries. With very low interest rates, the real rate of return on investment would be high.
- Invest in low-cost housing for the homeless and low-income families.
- Invest in aged care homes in the public sector.
- Invest in better medical facilities in remote areas for Indigenous people.
- Increase the immediate cash payment to $2,000 to all those on New Start Allowances.
- Implement an immediate cash payment of $2,000 to all volunteer firefighters who were working during the bushfire emergency.
- Increase the minimum wage from $19.49 per hour ($748.80 per week) to (say) $20.65 ($785 per week).
- Increase New Start Allowance from $278 per week to at least $375 per week (and then index it to real wages).
- Increase public sector wages of auxiliary hospital staff, teachers in childcare centres and staff in aged care facilities.
RELATED ARTICLES
About the author
About the author
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
Australia’s growth beat is real — but it’s the wrong kind for capacity
Australia’s economy outpaced forecasts in the June quarter as households opened wallets and government spending did the heavy lifting, even as public investment sagged. The signal for boardrooms: ...Read more
Economy
Australia’s growth is back—but it’s the wrong kind of strong
GDP surprised on the upside in the June quarter, powered by households and government outlays even as public investment slumped. The Reserve Bank stayed hawkish, signalling that sticky services ...Read more
Economy
Australia's Economic Resilience: Strong GDP growth challenges RBA's policy stance
In a surprising turn of events, Australia's economy has shown greater resilience than anticipated, with the latest Q2 GDP report revealing a stronger performance largely driven by vigorous household ...Read more
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
Australia’s growth beat is real — but it’s the wrong kind for capacity
Australia’s economy outpaced forecasts in the June quarter as households opened wallets and government spending did the heavy lifting, even as public investment sagged. The signal for boardrooms: ...Read more
Economy
Australia’s growth is back—but it’s the wrong kind of strong
GDP surprised on the upside in the June quarter, powered by households and government outlays even as public investment slumped. The Reserve Bank stayed hawkish, signalling that sticky services ...Read more
Economy
Australia's Economic Resilience: Strong GDP growth challenges RBA's policy stance
In a surprising turn of events, Australia's economy has shown greater resilience than anticipated, with the latest Q2 GDP report revealing a stronger performance largely driven by vigorous household ...Read more
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
