Ross Gittins on the government’s ‘surplus obsession’

Politics with Michelle Grattan · Oct 29, 2019 · 23m

The Australian economy is growing slowly, with people not opening their purses and businesses uncertain about the future.

The Reserve Bank has cut interest rates three times this year - the official cash rate is currently at a historic low of 0.75%. Many are arguing monetary policy has run its course, and fiscal stimulus is needed. This week’s Essential poll shows voters tend to think so as well, with 56% agreeing that stimulating the economy should be prioritised over getting back to budget surplus.

The Morrison government, however, is reluctant to do anything impinging on the projected…