How will we know if the government’s budget strategy is working? The Coalition’s new approach may be hard to measure.
Call it the “Frydenberg pivot”. The government has shifted away from the mantra of debt and deficit toward a willingness to use fiscal policy when warranted.
No longer will the Liberal Party be — as one Liberal MP proudly told me last year — “the party of thrift”. No turns toward austerity. Rather, Frydenberg’s Liberal Party wants to be the party of economic growth.
And, with some nudging from Treasury and others, the Liberals have come to understand that economic growth is not only the best way to make all Australians better off, it’s the best way to deal with the debt incurred during the pandemic.
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