The Economy, Stupid

Janine Dixon, an economic modeller and director at the Centre of Policy Studies, and Terry Rawnsley, urban economist at KPMG, dive into the complexities of GDP as a measure of Australian life. They discuss how GDP growth isn’t the full story, particularly when it comes to per capita adjustments and income flows. The conversation explores overlooked areas like unpaid work, regional economic disparities, and the importance of new data sources. They debate GDP's effectiveness in reflecting true well-being and hint at rising investment trends impacting productivity.

Narelle Hooper, a corporate advisor and ethics board member, and Luke Hilbath, a sustainability consultant, dive into the crisis of corporate social responsibility. They debate whether companies should pursue profit at any cost, highlighting the disconnect between legal action and social licensing. The duo explores the pitfalls of ESG becoming mere virtue signaling and examines failures in sectors like childcare. They advocate for long-term incentives and call for a shift toward genuine stakeholder engagement in business to foster a more responsible future.

Geoff Borland, a labour economist at the University of Melbourne, and Tom Crowley, an ABC federal political reporter, dive into the seismic shifts in Australia's job market post-COVID. They discuss the initial employment collapse, the rapid rebound, and how Australia fared better than other nations. A surprising 22% growth in non-market jobs is examined, highlighting the increased female participation in care roles. They also tackle the peculiar lack of wage growth despite a tight labour market, and offer practical jobseeker advice amidst ongoing changes.

In this discussion, Paula Jazabkowski, a strategic management professor, and James Ayres, a senior writer at the Australian Financial Review, dive into the crisis facing Australia’s insurance market. They address the alarming rise in premiums due to climate change and inflation. Paula emphasizes the need for a rethink in disaster insurance, while James highlights the social dilemmas of unaffordability. Together, they explore the balance between market profits and social protection, advocating for systemic changes to ensure the insurance landscape remains viable and fair.

Michael Pascoe, a seasoned finance editor and Reserve Bank observer, teams up with Nikki Hutley, an independent economist and former senior advisor with a focus on climate policy. They delve into the Reserve Bank's pause on rate cuts amidst growing uncertainties and the bubbling AI market. The conversation explores the implications of rising AI investments, potential job disruptions, and the challenges of maintaining economic stability amid inflation. They also discuss historical market bubbles and what future policies may be needed to tackle these evolving dynamics.

Kevin Fox, head of the UNSW Centre for Applied Economic Research, and Amy Oster, former Treasury economist and head of Policy Institute Australia, discuss the nuances behind the rising official inflation rate. They explore how perceptions of inflation can differ from reality due to frequently purchased items feeling more impactful. Kevin explains the complexities of the Consumer Price Index (CPI) and the recent integration of scanner data to improve accuracy. They also highlight the importance of rough price shifts since COVID and the need for ongoing adjustments in economic measures.

Justin Wolfers, an economist and public policy professor, discusses Australia’s economic success, attributing high living standards to strong institutions. He contrasts Australia's inclusive institutions with Argentina's extractive ones. Nikki Hutley, a macroeconomist and Climate Council councillor, highlights issues of inequality and climate inaction. Both guests emphasize the need to defend these institutions and advocate for a cooperative mindset over zero-sum thinking. Despite challenges, they express hope for Australia's future and the potential to export its model.

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