Perennial issues – the cost of living, energy bills and healthcare – have dominated the federal election campaign, that is until Donald Trump lobbed an economic hand grenade into the contest.
The US president’s tariff bomb has sparked a global market rout and brought the question of who is the best economic manager to the fore as Treasurer Jim Chalmers and coalition counterpart Angus Taylor prepare to square off in the first treasurers’ debate on Wednesday.
The coalition has traditionally banked on its reputation as superior economic managers but recent polling suggests voters are no longer convinced.
A survey by pollster Redbridge found 31 per cent of respondents thought Labor’s economic vision was better for the nation, compared with 29 per cent who thought the coalition had a superior plan.
Opposition Leader Peter Dutton attacked Labor for weakening Australia’s economic position, undermining the nation’s ability to respond in a crisis.
“The government hasn’t prepared our economy,” he told reporters on Tuesday.
“Labor has made decisions in subsequent budgets now which make it harder for the economy to function with international headwinds.”
But Prime Minister Anthony Albanese said his government had improved the budget bottom line by $207 billion over its first term, turning a deficit in the last year of the previous coalition government into two surpluses.
However, the budget has since returned to a structural deficit.
Labor are confident that Dr Chalmers’ communications skills will help him overpower Mr Taylor in any debate.
But on paper, Mr Taylor – a Rhodes Scholar and winner of the prestigious University of Sydney economics medal – has the superior economic credentials
Mr Taylor slammed the treasurer’s economic know-how as he criticised him for not asking Treasury to model what the effects would be if countries imposed retaliatory tariffs, resulting in an escalating trade war.
“The history of trade barriers going up like this … is they are often reciprocated,” Mr Taylor said.
“It is clear the treasurer has not asked for that (modelling), and I think that’s extraordinary. I mean, it shows you how out of his depth he is, how out of touch he is, and how little he understands about economics and economic history.”
The pair have at least found common ground on one thing: ruling out imposing retaliatory tariffs on the US, which they say would simply add to the pain felt by Australian consumers.
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