Trump’s victory could wipe $36b from Australian economy
Analysis by KMPG suggests that Australia’s economic growth would be reduced by between 0.8 per and 1.5 per cent if US president-elect implements all of his policies; this would cost the domestic economy between $19bn and $36bn. KPMG’s chief economist Brendan Rynne says this could in turn add a full percentage point to the inflation rate, adding to the challenges facing the federal government and the Reserve Bank of Australia. Economist and former RBA board member Warwick McKibbin has expressed similar concerns about Trump’s policy agenda, warning of the potential for another global financial crisis. He adds that Trump’s proposal to hike import tariffs will undermine global trade and directly impact the Australian economy.
PM hits president-sized bump in the road
Prime Minister Anthony Albanese has called Donald Trump to congratulate the US president-elect after his comfortable win over White House rival Kamala Harris. Albanese and Trump are believed to have discussed a range of issues, including the importance of the alliance between the two nations, trade and investment relations and the AUKUS defence agreement. Trump’s policies such as tariff hikes on all imported goods – but much larger increases for Chinese imports – are likely to have an impact on Australia, while the US is expected to withdraw from the Paris climate change agreement for a second time. Meanwhile, Albanese has expressed support for Australia’s ambassador to the US, Kevin Rudd, amid calls for the former prime minister to resign due to his past criticism of Trump.
Keep green dream alive: Madeleine King urges US to retain Inflation Reduction Act
Donald Trump has been a vocal critic of the Biden administration’s $US369bn ($556bn) Inflation Reduction Act. Trump stated during the presidential election campaign that he will rescind all unspent funds under the ‘misnamed’ IRA. However, Australia’s Resources Minister Madeleine King says the IRA is a job-creating policy for the US and has urged Trump to retain it; King contends that the US will still need critical minerals for the energy transition, adding that the federal government will work with the Trump administration regarding the development of this sector.
Life to improve with Trump
In Australia, the US and many parts of the world, Generation Z are bewildered that Donald Trump has become the 47th president. Yet this generation stands to be the biggest beneficiary of the incredible changes ahead for both the US and Australia as a result of Trump’s return to the White House. The current white-collar workforce is dominated by people with hard skills. Gen Z must understand how to use technology, but they will also need soft skills. Unlike hard skills, which are job-specific and measurable, soft skills are broader and include competencies such as communication, teamwork and problem solving. They are critical for fostering a collaborative work environment and enhancing overall team performance. Gen Z grew up with technology and if they combine that knowledge with communication skills they are ideally placed to benefit from the new era, especially as baby boomers who have the key jobs are retiring.
Republicans eye sweep through all three houses
The Republican Party has gained control of the Senate following the presidential election, and party officials are optimistic that it also have a majority in the House of Representatives. The Republicans currently have a four-seat majority in the lower house, with the winners of more than 40 seats yet to be declared. Republican House speaker Mike Johnson says it is clear that the party is set to have unified government in the White House, the Senate and the House of Representatives.
The $232b public service wage bill fuelling inflation
Data from the Australian Bureau of Statistics shows that the public sector wages bill increased by eight per cent nationwide in 2023-24, to $232bn. The federal government’s wages bill increased by 10 per cent to $37.3bn, while the number of federal public service employees increased by more than four per cent to 365,400. George Tharenou, the UBS chief economist at USB, says the growth in public sector employment is helping to shore up the overall labour market amid a slowdown in private sector employment.
ABIX 