HECS cuts are not inflationary

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When you only have a hammer, everything looks like a nail:

UNSW economics professor Richard Holden said the policy for a one-off cut of 20 per cent to student debt was “blatant vote-buying” in the vein of Queensland Labor’s strategy before the state election.

“The government’s just acting like this doesn’t count, it’s just Monopoly money, of course it does count – it’s going to add up to another $16bn to net debt,” Professor Holden said.

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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.