Under new treasurer Jim Chalmers’ leadership, an “economic summit” will be the centrepiece of the government’s efforts to build consensus on key challenges to Australia’s economic prosperity. Over 300 partners, including unions and independent economists, came to help make the case. Their aim is to create consensus around the sufficient common ground needed to propel change, giving the government a jumping off point for the next series of moves.
The roundtable will address hot button issues such as housing and the impacts of artificial intelligence (AI). It is a testament to Chalmers’ belief in the power of well-considered positive reform to overcome radical proposals. Their ideas and opinions are sure to provide us with profound perspectives. They highlight the fundamentally different attitude towards regulation from Chalmers and labor unions.
Economist Richard Holden emphasized the necessity for a “broad agreement on some version of the ‘Abundance agenda,’” which advocates for loosening regulatory barriers to foster economic growth. Chalmers has previously advocated for light-touch regulation and generally supports this start-up friendly agenda. Unions are sounding the alarm over its potential impact on workers’ rights.
Sally McManus, Secretary of the Australian Council of Trade Unions (ACTU), stated, “one person’s regulations are another person’s rights,” underscoring the delicate balance between fostering business growth and protecting workers’ interests. This tension highlights the tension found in any compromise, particularly between union members and NGOs suggesting the need for more inclusive neighbor engagement.
The roundtable has attracted a diverse group of participants, including shadow treasurer Ted O’Brien and independent economist Chris Richardson, who will contribute to discussions during the summit’s tax session on the third day. The event quickly grew to hundreds, then thousands of submissions. This has included five interim reports from the Productivity Commission and extensive background modelling performed by Treasury, easily demonstrating the commitment and willingness to prepare.
Richardson pointed out the pressing economic issues facing Australians today, stating, “We have a problem: the average Australian saw their living standards rise by just 1.5% over the past decade.” He blasted Democrats and Republicans alike for failing to meet this challenge during the most recent election.
While there is real opportunity for substantive conversations here, some onlookers are already warning as to why Chalmers’ approach might have a thin diet. Saul Eslake, an economist, remarked, “The prime minister has made it clear he is not getting that licence. The government is not prepared to venture much beyond its limited mandate from the election.” This pessimism speaks to a deeper skepticism on if the roundtable can drive major reforms amid tough political realities.
As conversations continue, many advocates dash their hope against the rocky backdrop of reality. They’re hoping these negotiations will lead to enforceable agreements that improve economic outcomes while upholding labor standards. An episode about one special roundtable, whose outcome could determine whether progress on this issue continues. It could very well set the trajectory of Australia’s economic future for decades to come.
