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A coalition government means more austerity and more inequality

By Andrew Leigh - posted Friday, 6 September 2013


Some readers won't need much imagination. If you've chatted to friends in the UK lately, you'll know that their unemployment rate spiked from 5 percent to 8 percent in the GFC; and thanks to the austerity of a Conservative Government, has remained there ever since. Queenslanders know that they used to have an unemployment rate below the rest of Australia, but now record an above-average jobless rate. Again, conservative austerity is a significant part of the story.

After a generation of rising inequality, Tony Abbott's policies will give the most to those that have the most. Abolishing the mining tax will line the pockets of billionaires. Abolishing the means-test on the private health insurance rebate will benefit families earning over $176,000. Paid parental leave will give five times as much to top earners at to minimum wage workers. A child born with a silver spoon in his mouth will get a gold one; the rest will have to make do with plastic.

But it's not just the spending measures that are regressive – the impact of unemployment will likely fall on the most disadvantaged. When the economy falters – as it would do under severe austerity – it's the least skilled who are typically the first to lose their jobs.

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As polling day draws near, Australians need to realise that Mr Abbott's agenda is profoundly out of touch with Australia's egalitarian ethos. For all his sporting prowess, Mr Abbott far better resembles the Sherriff of Nottingham than Robin Hood.

An abridged version of this article was originally published in the Daily Telegraph on 4 September 2013.

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An abridged version of this article was originally published in the Daily Telegraph on September 4, 2013.



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About the Author

Andrew Leigh is the member for Fraser (ACT). Prior to his election in 2010, he was a professor in the Research School of Economics at the Australian National University, and has previously worked as associate to Justice Michael Kirby of the High Court of Australia, a lawyer for Clifford Chance (London), and a researcher for the Progressive Policy Institute (Washington DC). He holds a PhD from Harvard University and has published three books and over 50 journal articles. His books include Disconnected (2010), Battlers and Billionaires (2013) and The Economics of Just About Everything (2014).

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