In its largely unsuccessful attempts to build early momentum in this election year, Labor has relied heavily on what it sees as its “terrific trifecta” of economic achievements. At every opportunity, Anthony Albanese and his Treasurer Jim Chalmers, have reminded voters that “inflation is down, wages are up and unemployment is steady”. It is a rare trilogy that challenges the economic orthodoxy.
Jobs are normally the first casualties of a war on inflation. The countervailing forces in the economy customarily push unemployment higher when policy pressure is directed towards containing costs. Falling inflation slows an economy, which generally forces businesses to shed workers.
Higher wages normally mean fewer jobs, too, as the price of labour increases. But neither of those things has happened this time. Logic would dictate that when a government produces this unlikely trio of economic outcomes a fourth element should follow.
Its voter support should increase. Mark Riley But that hasn’t happened either. The Albanese Government hasn’t just defied economic orthodoxy.
It’s defied political orthodoxy, too. To its detriment. While inflation has been falling, wages have been rising and unemployment has remained steady, the Government’s popularity has gone down.
Why? Because the official data might suggest the cost of living is easing but voters aren’t feeling that in their lived experience. Electricity prices have fallen by 25.2 per cent over the past year because o.
