What’s the point of government spending?

Tue 10 Nov 2026 08.21 AEDT

Economy

What’s the point of government spending?

On this episode of What’s the Point?, Richard Denniss explains why government spending isn’t to blame for higher inflation in Australia right now and why arguments about whether the government spends too much or too little are simplistic; how the money is spent matters.

This episode was recorded on Friday 6 November.

Get our newsletter

Quality research, analysis, explainers and factchecks from experts you can trust.

More Fool Me: How the gas industry tricked Australia by Richard Denniss, Australia Institute Press (August 2026)

Rate rises won’t bring down oil prices or stop the data centre boom by Matt Grudnoff, The Point (October 2026)

Brutal interest rate hike won’t address main causes of inflation, Follow the Money, the Australia Institute (November 2026)

Six ways to save the Commonwealth billions, fairly and efficiently by Matt Grudnoff and Greg Jericho, The Point (November 2026)

Theme music: Blue Dot Sessions

We’d love to hear your feedback on this series, so send in your questions, comments or suggestions for future episodes to podcasts@australiainstitute.org.au. Subscribe to What’s the Point? with Richard Denniss on YouTube, Apple Podcasts, Spotify or wherever you get your favourite podcasts.

OFF THE CHARTS

If the RBA forecasts continue, real wages won’t recover to 2021 levels until 2044

By Greg Jericho

Last week, when the Reserve Bank announced it had raised the cash rate to 4.85%, it also released its latest forecasts for the economy in its Statement on Monetary Policy. For those hoping for a recovery in lost living standards, the news was very grim.

Economy

OPINION

Six ways to save the Commonwealth billions, fairly and efficiently

By Matt Grudnoff & Greg Jericho

If the government wants to pursue significant spending cuts, this piece proposes six options that help achieve short term equity and long run efficiency goals. Together, they could save between $14 billion and $62 billion.

Economy

OPINION

Who gets to decide what a 'realistic' energy transition is?

By Ray Wills & Peter Newman

There is a difference between what Australia should do and what our most influential businesses would prefer we don’t do. Our energy debate too often blurs the two by insisting on being ‘realistic’.

Climate Economy

OPINION

There's other ways to fight inflation than making mortgage holders pay

By David Shoebridge

You don’t get out of an economic crisis like the one we’re in through austerity. Cutting government services will only result in the people who can least afford it, falling further and further behind.

Economy