policy - Economics Students Society of Australia

policy

A collection of 60 posts

The USSR and Barter Economy: How Pepsi Once Became the Sixth Largest Military in the World

The USSR and Barter Economy: How Pepsi Once Became the Sixth Largest Military in the World

Part one of this series focused on the structure of the USSR’s centrally planned economy and how that contributed to the Soviet ruble becoming worthless as international currency. After the end of Stalin’s rule, Soviet Premier Nikita Khrushchev implemented a doctrine of ‘de-Stalinisation’ which sought to ease the

The Market for Beauty

The Market for Beauty

We all want things to be beautiful. On an individual level, this might mean applying make-up or buying nice clothes. Mother Nature herself seems to have a favourite golden ratio to make the natural world aesthetically pleasing. And for an employer, this might mean hiring as many beautiful people as

The case for increasing Australia's humanitarian intake

The case for increasing Australia's humanitarian intake

The war in Ukraine has caused the fastest growing refugee crisis since WWII with over 4 million people having fled the country in the past five weeks. In response to the crisis, there are three durable solutions, in which refugees can reclaim rights associated with citizenship: repatriation, local integration, and

Avoiding the disasters of disaster management - Part II

Avoiding the disasters of disaster management - Part II

In part 1, we discussed the importance of governments promoting risk-mitigation measures and regulation in the insurance market to reduce insurance premiums and to ease policyholders’ ability to select appropriate insurance coverage. However, these policies alone may not alleviate the most unaffordable insurance premiums in the most risk prone areas,

Avoiding the disasters of disaster management - Part I

Avoiding the disasters of disaster management - Part I

Australia has been plagued by unprecedented natural disasters in recent years. Natural disasters cost the Australian economy $18.2 billion annually, a figure that is expected to rise to $39 billion by 2050 due to climate change and urbanization into risk-prone areas. In response, insurance premiums have doubled in the

Is it time for a universal basic income in Australia?

Is it time for a universal basic income in Australia?

Amidst COVID-19, the Australian government used welfare payments to sustain the Australian economy, while workers were displaced from their jobs. However, COVID-19 has forever changed the job market with many industries not regaining pre-pandemic levels of employment.[1] If the government were to provide welfare payments without means-testing, is this

Fuel to the fire: The economics (and politics) of petroleum

Fuel to the fire: The economics (and politics) of petroleum

It’s Thursday; your salary has just hit your account and you’re cruising home after a hard day’s work when, suddenly, that dreadful light illuminates your dashboard. Frantically searching, you find that fuel prices are a full 15 cents higher than they were yesterday, with the price seemingly

Housing affordability: A huge problem with hugely problematic solutions

Housing affordability: A huge problem with hugely problematic solutions

The ability to own your home with a backyard and a quarter acre block has been at the core of the Australian dream for decades. Such a promise has lured many people to migrate to Australia and is a major contributing factor to why Australia is one of if not

“Mindset change” – The ACCC’s proposal to revolutionise Australia’s merger control regime

“Mindset change” – The ACCC’s proposal to revolutionise Australia’s merger control regime

Australian merger laws are on the verge of revolution [1]. In a fiery call for reform, departing ACCC commissioner Rod Sims recently proposed a slew of provocative changes to Australia’s merger control regime, which he argues is “skewed towards clearance” [2]. For Sims the problem is fundamentally attitudinal: In

Ageing: An impost on prosperity?

Ageing: An impost on prosperity?

The world’s population is getting older. While many global workers may be eyeing retirement as a prize, the resulting adverse economic implications of collective ageing are cause for concern. The government must combat this due to the intergenerational effects of ‘age policy’, often taking decades to perceive changes in

Digitalisation and the generation left behind

Digitalisation and the generation left behind

Since the early 2000s, digitalisation has always been a trending phenomenon in economies around the world. From heavy machinery commonly seen in standardised production processes to the high-tech service AI used in hospitality and tourism industries, digitalisation is unarguably leading to changes in society and business in both the near

Our Economy in 40 Years: Insights from the 2021 Intergenerational Report

Our Economy in 40 Years: Insights from the 2021 Intergenerational Report

Since its first edition in 2002, the Intergenerational Report has served as the government’s economic crystal ball by providing a peek 40 years into the future of the nation. Arguably Treasury’s biggest exercise in macroeconomic forecasting, the report examines current policies and historical trends to paint a picture

Federal Budget Marks a Shift to the Left

Federal Budget Marks a Shift to the Left

The announcement of the Morrison government’s federal budget last Tuesday marks a significant shift in the conventional wisdom of Australian politics. For years, both Liberal and Labor governments have been chiefly preoccupied with the issue of debt accumulation, and often shirked large-scale public investment for fearing of running the

The Economics of Decriminalising Drugs

The Economics of Decriminalising Drugs

There has been a lack of sound economic analysis utilised by governments regarding drug policies throughout modern history. In its place, rhetoric and populism has enforced a societal norm that exacerbates the harms of drugs. This has encouraged increased punishment to drug-users from both a legal and a cultural perspective,

Hindsight bias: Why do unpredictable events seem predictable after they occur?

Hindsight bias: Why do unpredictable events seem predictable after they occur?

When looking back on surprise events, such as the outcome of a political election, the winner of a close sports game or a stock market crash, it can be tempting to think that you saw it all coming. Behavioural Economists and Psychologists have coined the term “hindsight bias”, or the

In fiscal jeopardy? An appraisal of the Japanese sovereign debt crisis

In fiscal jeopardy? An appraisal of the Japanese sovereign debt crisis

Nations around the world have undergone radically distinct societal and structural changes in recent times. Whilst a fortunate few may have bypassed the worst of circumstances, the cloud of uncertainty continues to linger above the figurative head of our global citizens and has rendered many governments averse to making careless

The Pill; efficacy, accessibility and a conflict of interest?

The Pill; efficacy, accessibility and a conflict of interest?

In a decade of cold war tensions, manned space exploration and the debut of the Beatles, the arrival of the Combined Oral Contraceptive Pill (COCP) to Australian shores in 1961 stands out as a defining cultural moment. Fifty-Eight years on from its release, oral contraceptives remain the most popular form

In defence of uncertainty

In defence of uncertainty

“When the facts change, I change my mind. What do you do, sir?” Regardless of individual opinion on the implications of his work, John Maynard Keynes’ alleged response to a cynical questioner is timeless. To collectively change our views in light of new evidence is to allow political and economic

Nominal Interest: Budget Special

Nominal Interest: Budget Special

In this latest episode of Nominal Interest, Priyanka Banerjee, James Maccarrone, Sam O’Connor and Lisa Panigrahi discuss the motivations of the recent Federal Budget, delivered by Treasurer Scott Morrison. They explore some of the key policy areas of small business tax cuts, the proposed crackdown on multinational tax avoidance,

Nominal Interest Episode 1

Nominal Interest Episode 1

Introducing Nominal Interest, ESSA’s exciting new podcast! On Tuesday, the ESSA publications crew donned the headphones and microphones and went live on the airways courtesy of Radio Fodder for the first ever episode of new podcast, Nominal Interest. Each week, on Tuesdays at 7:00, we plan to dissect

The disconnect between economic policy and thought

The disconnect between economic policy and thought

One of my old economics lecturers used to advise the government on economic policy. He once told me that presenting economic policy to the government can be very unrewarding. He said that what the government considers to be sound policy is often rejected under the guise of being bad politics.

Was desalination the right option for Victoria?

Was desalination the right option for Victoria?

The Victorian Government’s decision to invest in desalination has been, without question, highly controversial. High capital and operating costs associated with the Wonthaggi Desalination Plant, along with environmental concerns, have made the decision generally unpopular. They also raise the question: why did the Government invest in desalination when cheaper,

The story of the real Australian economy: Part 4 – The federal budget & the victims of political folly

The story of the real Australian economy: Part 4 – The federal budget & the victims of political folly

“What are the most pressing economic issues the government should be tackling right now?” “Well the current and previous governments are avoiding the obvious problem, they’re not focusing on reducing the deficit!” That is a small excerpt from a conversation I had with someone a few days after the

No taxation without contemplation

No taxation without contemplation

‘No taxation without representation’ was the war cry that drew the American people from apathy to avid opposition at the onset of the American Revolution. Today, we do not face the same peril of colonial burden experienced by the founding fathers. But we do face taxation peril at the hands