It's Time to See the Big Picture

There is increasing disquiet amongst those interested in Australia's future about the absence of visionary public policy and the rise of populism and rancour in the political debate.

Kitchen table economics for lower-income households is a real experience of juggling higher energy and food prices, childcare and education expenses; but for others it may be more about the size of the kitchen table. For some Australians who have become accustomed to McMansion living, that is, larger homes with bigger floorplans, with all the modern conveniences that incur higher insurance, maintenance and running costs, even small increases in the cost of living make them cranky.

In response to hypersensitivity in middle and higher income households about cost of living 'pressures', politicians have indulged in what has been described as the "low-hanging fruit of populism” encouraging both the idea that life is expensive and that governments can have some impact on this.

The government needs to deflate the expectation of entitlement to assistance from the community where it is not warranted, and must alter the public’s view with a policy narrative that explains that government is not responsible for assisting with cost of living pressures in all circumstances. Welfare entitlement should be needs based not a political bribe. We only have to look at Greece today for motivation.

Australia is drifting policy wise and unless real leadership emerges we will squander the legacy of the great reformers who gave us 21 years of economic growth. We are more than a one trick pony, mining at all costs economy, which is a finite industry anyway and can devastate our environmental treasures. Instead, let's be more of a nation of innovators, entrepreneurs and value-added manufacturers, and put in place a tax code that encourages this and finances the public services government should provide like in health and education.