Malcolm Turn Bull Economic Objectives

Governments use macroeconomic objectives to assess their overall economic performance. These objectives include of price stability, full employment, standard of living, efficient allocation of resources, equitable distribution of wealth and income, external stability and economic growth. Governments have these various objectives in place to satisfy the needs and wants of a nation's individuals. As it is crucial how these objectives are prioritised and managed, subsequently failure to achieve these objectives has serious effects on a nation’s economy. The Turnbull government has looked to achieve key economic objectives of continued economic growth and full employment. However the Liberal National Party has failed to achieve these objectives

Economic growth refers to an increase in the volume of goods and services produced in the economy in a specific period of time (Cave, D, et.al). After being re-elected Malcolm Turnbull stated “We want higher economic growth that provides prosperity to everyone” (Daley, 2016). But since Turnbull became priminister in 2015 the economic growth rate was 2.5% according to the (ABS), and now not much has changed, in fact we have decreased to 2.4% (ABS) as of April 5 2017 and being lower then this before after nearly entering a recession. The coalition however, introduced a policy for growth where they would deliver a company tax cut for small businesses dropping the tax rate for businesses with an annual turnover of less than $10 million, which seemed a very positive move for growth in Australia however this policy has failed due to the negative quarter after this policy was implemented. As GDP (Gross Domestic Product) a main economic indicator for Economic growth shows the near recession, we faced at the end of 2016. (Appendix

High employment benefitting the government as, less money will be spent on unemployed benefits/welfare allowing the government to spend money on other things. Turnbull has enforced many policies such as corporate tax cut to small businesses, free trade agreements and a single window for export documentation to name a few (LNP,2016). However, the unemployment rate a key economic indicator for full employment is showing 5.9% (Appendix 2) at the current moment, almost the highest since he began as priminister. Recent figures (NewsCorp,2017) have been released of 33,500 part time workers lost their jobs, 6,400 full time jobs being lost and also the underemployment rate, people looking for extra work, returning to a record high of 8.7% (1.1million workers). This illustrates that Turnbull’s policies aren’t working, so new policies have to be made and introduced to achieve successful full employment. To achieve full employment, fiscal policy needs to be implemented, which will have the flow on effect of higher aggregate demand due to influenced lower interest rates meaning more consumer spending on goods and services therefore the need for more workers and jobs will become available, and however this can bring a side effect of inflation. Due to