Budget assumptions bank on Futureboom!

Wednesday 9 May 2018

Futureboom! It’s always coming. And the good news today is that it will fix the Budget. Yay.

Here are the Budget assumptions:

Futureboom! is upon us by June this calendar year as growth surges back to 3% and stays there, something it has been unable to do since the GFC. It will be delivered by a goodly rebound in household consumption growth to 3% forever, despite falling house prices and a labour market that keeps on tightening despite rampaging mass immigration that is materially higher than forecast jobs growth. The logical outcome of that is wages to the moon even faster than before:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.