The last thing an Australian economy with rising unemployment needs is for the government to reduce the budget deficit. Yet the first thing some people in the Coalition want Malcolm Turnbull to do is to reduce the budget deficit. If he oversees a slowing economy and rising unemployment he will be blamed. And if he oversees an increase in the budget deficit he will be blamed. Ouch.
Dr Richard Denniss is chief economist at The Australia Institute, a Canberra think tank, www.tai.org.au
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