Economy under pressure: An economist’s advice to the federal government

Australians are struggling with the rising cost of living and bracing for another interest rate hike on the heels of the 0.75 percentage point rise in the United States overnight.

Managing director of Market Economics and former economic adviser to Julia Gillard, Stephen Koukoulas, says if he was advising the government today, he’d make skill development a priority.

“Frankly we need to make sure the skill level of the population is matching the demand from the workforce,” he told Neil Mitchell.

“Incentivise older Australians to stay in paid work because of course we’re all living longer.”

Mr Koukoulas says with interest rates at the current rate, interest on Australia’s budget deficit is approaching $25 billion per year.

“That’s $25 billion that can’t be spent on roads, education, healthcare,” he said.

Press PLAY below to hear Mr Koukoulas’ advice to the federal government