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Labor has wasted its budgetary luck, and now it's running out

The article from the Australian Financial Review discusses the Australian Labor government's handling of the federal budget, highlighting a perceived squandering of economic advantages inherited from the previous administration. It critiques the government's fiscal strategy, pointing out that despite inheriting a strong economic position with low unemployment, high commodity prices, and a robust budget surplus, Labor has not capitalized on these conditions. Instead, the article argues, the government has increased spending, particularly on programs like the National Reconstruction Fund and the Housing Australia Future Fund, which are seen as inefficient or misaligned with economic priorities. The piece suggests that this has led to a deterioration in the budget's structural position, with rising debt and deficits projected into the future. It also mentions the government's failure to address productivity issues, the lack of significant tax reform, and the potential for future economic challenges due to these policy choices. The author implies that the government's luck in terms of economic conditions is running out, and without a change in strategy, Australia could face economic difficulties.

Read the Full The Australian Financial Review Article at:
[ https://www.afr.com/politics/federal/labor-has-wasted-its-budgetary-luck-and-now-it-s-running-out-20241120-p5ks2k ]