Albanese urged to resist post-Voice pressure to spend on cost of living relief
The government is facing pressure to deal with the cost of living crisis in the wake of the Voice referendum defeat. But economists warn it risks making things worse.
One of the most persistent and politically damaging criticisms levelled at the Albanese government during the Voice campaign was that the constitutional amendment distracted its focus from the cost-of-living crisis affecting millions of Australians.
But now that the referendum is over and ended in a dismal defeat, economists are warning that the government risks making an even bigger mistake if it succumbs to political pressure and its own temptations to splash out on spending in a misguided attempt to solve the problem.
Many economists are privately concerned the government may resort to new spending promises after the failure of the Voice over the weekend, and following months of criticism from Liberal and National MPs that Labor has been spending hundreds of millions of dollars on the referendum at a time when average people are trying to make ends meet.
The overwhelming message from economic experts is that spending on short-term relief would ultimately only make it even tougher for households by pushing up inflation and potentially forcing the Reserve Bank to increase rates.
