thanks for joining us here at Kalkine media the newly elected labor government is expected to
traverse through a series of pressing challenges left untreated by the previous ruling party
although the coalition cannot be solely blamed for the current economic scenario many economic
adversities have shaped up during its tenure inflationary pressures painfully slow wages
growth and a tightening labor market are some of the concerning factors facing the new government
on the brighter side of things the unemployment rate is at an all-time low of 3.9
increasing the prospects of wage hikes in the future while there is not enough labor force
available to fill the vacant positions demand for labor is soaring however this relatively
comforting factor falls flat compared to the other issues plaguing the economy the national
debt is also piling up in an over stimulated economy on a broader scale the election results
arrived just a few days after the central bank announced its first interest rate hike
so the present government has come into power at a transitory phase which requires more
proactive measures from the ruling government the labor party has introduced a great set of
reforms targeted at the vulnerable sections of society the ongoing inflation is a key factor
affecting households in the present context making it one of the major areas of policy reforms some
of the reforms promised by labour include reducing taxes construction of more houses and attention to
child care and aged care however these policy reforms could increase government spending
in the coming months for an economy with a high level of debt higher spending could bring further
turmoil to the ruling party though most of the inflationary pressures have risen out of global
factors the previous government was criticized for handling rising living costs it would be
interesting to see how the new government will handle the increasing cost of living pressures
some of the proposed measures by the anthony albanese led party include a commitment to support
an increase in minimum wages by 5.1 which is the same pace at which inflation is rising however
albanese later clarified that the policy would only be introduced for those living on minimum
wages according to labour these measures could further widen the budget deficit
and add 7.4 billion australian dollars to the deficit over the next four years however they are
believed that those measures will also increase production capacity heavy responsibility on the
new treasurer's shoulders jim charles will be taking over the position of treasurer with the
large responsibility of reviving the economy on his shoulders treasurer charles has stated that
he has observed the trickiest economic conditions since world war ii apart from domestic issues
another economic adversity that must be addressed is the worsening trade relation with china
experts believe that chalmers experience as the adviser to wayne swan who served as treasurer
during the 2007-2013 labor government might be helpful in his upcoming run this is due
to the economic climate during the 2007-13 period being also marked by a change in monetary policy
much like the present scenario the new treasurer would be dealing with an economy that is gradually
slowing down and at the same time has a monetary stimulus beyond the required limit so the role
of the new treasurer now involves realigning the relationship between wages and inflation
as well as the relationship between economic growth and inflation at the same time boosting
domestic wages in a highly volatile environment is a daunting task a further surge in wages could
increase the pre-existing stimulus leading to higher inflation however labor has associated
itself with protecting the interests of the workforce so the party might have to pay
special attention to its promises of promoting wages the overall picture will become clearer
once various domestic economy factors also become clearer in time and don't forget to
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