The Wire

With consumer confidence figures at a low not seen since the early 90’s , there are fears we are heading for recession. The Rudd Labor government are facing huge challenges in how to manage high interest rates, inflation, and adapting the economy to deal with climate change. But is the government doing enough to tackle these issues? So far their primary tool in managing spiralling prices, especially in the housing market, has been to rely on the Reserve Bank raising interest rates, and then handing out tax cuts to help ease the “social pain” they cause. Catherine Zengerer spoke to Professor of Political Economy from the University of Adelaide, Frank Stilwell, to find out his views on that approach and what can be done.