How Growth Can Make Us Worse Off

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How growth can make us worse off by Ross Gittens Outline: This article discusses the economic growth within the australian economy and its effects. It is stated that the Australian economy’s economic growth is driven mostly by immigrants rather than natural increase. The business bible shows a growth of average of 1.42 per cent being the weakest in the past 15 years. Slower growth in the economy leads to slower growth in GDP, lower standard of living, harder to reduce budget deficit and reduced productivity of labour. The drive for smaller government spending doesn’t rapidly increase standard of living. The federal budget will be hard to surplus back into. Analysis: This article discusses the factors that are affecting australia’s…show more content…
Low inflation data adds to interest rate cuts chances Outline: This article discusses the low inflation data that adds to the interest rate in the australian economy and highlighting its effects to the economy. Australia’s official inflation rate has risen at its slowest annual pace in nearly three years, adding pressure to the Reserve bank of australia to stimulate the economy. It is stated the figures of inflation has lifted by 0.2 per cent in the three months to March, bringing the annual rate to 1.3 per cent. Low inflation rates leads to no sustained income growth for the Australian workforce. Global oil prices have recently plummeted to five-year lows amid an oversupply pushing local petrol prices under $1 a litre in some areas, from around $1.30 in December. Analysis: This article states the factors that are affecting australia’s inflation which is the distribution of national income and wealth, individual welfare and household. National Australia Bank (NAB) economists said a 0.6 per cent quarterly underlying rate of inflation was consistent with the reserve bank’s forecast of 2.25 per cent for underlying inflation in the year ending June. The figures came in right on expectations. Economists surveyed by AAP had forecast an annual rate of inflation of 1.3 per cent, and a quarterly increase of just 0.2 per cent. “Even though underlying inflation was also low, there were no signs of it slowing too much further
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