Progressiveness from the Conservatives?

The Morrison government will prioritise reducing the unemployment rate ahead of debt reduction in a significant overhaul of its fiscal strategy in response to the coronavirus-caused recession.

In a major shift away from the Abbott-era hyperbolic rhetoric of “budget emergencies” and “deficit disasters”, treasurer Josh Frydenberg said on Thursday the government would not begin the work of substantial debt and deficit reduction until the unemployment rate was “comfortably” back under 6%.

“With historically low interest rates, it is not necessary to run budget surpluses to stabilise and reduce debt as a share of GDP — provided the economy is growing steadily,” Frydenberg said.

“Even though debt will be at much higher levels than we are accustomed to, it remains sustainable and will be put back on a steady path of reduction.”

Liberals drop obsession with debt and deficit to focus on job creation by Katharine Murphy and Paul Karp in The Guardian.

Australian Real Progressives would argue that under 6% is not enough but the Treasurer did state ‘comfortably’ under six per cent.  That leaves plenty of room for interpretation.

The Queensland Liberal Andrew Laming even said “…“is almost a diluted version of Modern Monetary Theory, a belief that the true crime is to leave the citizenry unutilised or underutilised”.

It’s a start!