Politics · Australia · 9 hrs ago

Opinion argues Labor must confront inflation with spending cuts or tax rises

Opinion argues Labor must confront inflation with spending cuts or tax rises

An opinion piece argues that Australia’s Labor government is failing to confront entrenched inflation.

It says inflation has become a serious, lasting problem, while the government has focused on its earlier agenda of reducing inequality through wages and services.

The piece says handouts and subsidies could add to inflation, and argues that blaming high oil prices does not answer whether the government is helping fix the problem.

The Reserve Bank is raising interest rates to curb inflation and may raise them again the following week, according to the piece.

It argues the government should cut spending or raise taxes to help bring inflation down, rather than leave the job to the central bank.

Those choices would likely be unpopular, but the piece says they could ease inflation and eventually give the Reserve Bank room to lower rates.

It warns that without action, public frustration could grow and Labor may spend the rest of its term making excuses.

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Anthony AlbaneseAustralian prime minister
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