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Paul Brennan

Budget gets spending balance wrong on hiring and investment incentives

Spending more than $4.2 billion on hiring subsidies is the better way to bring back jobs than $27 billion writing off investments that businesses may hesitate to make.

Paul BrennanEconomist

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Following the Spanish flu 100 years ago, the global economy enjoyed a period of strong recovery during the so-called roaring 20s. Fast forward to today, and we are all hoping history will repeat itself following COVID-19.

But based on the actions of the federal government this week, delivering a record fiscal stimulus in the budget, it’s clear it is certainly not relying on this hope.

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Paul Brennan is senior economist with Suncorp and has worked at Citigroup Global Markets as well as the RBA, federal Treasury and the OECD.

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    Original URL: https://www.afr.com/policy/economy/budget-gets-spending-balance-wrong-on-hiring-and-investment-incentives-20201008-p5633r