Bang, bang, bang, bang, bang. Five reports have hit Treasurer Scott Morrison’s desk in the last few days. Each one is a three-inch nail in the coffin of his cherished theory of trickle-down economics. Australia has now given economics 101 textbook writers the definitive case study to disprove this once-popular notion. Hard to imagine a more compelling one.
The Abbott and Turnbull governments have assiduously pursued the shift of wealth and income to the big corporations and rich individuals. Their rationale is that this leads to investment in productive enterprises, greater economic activity, then more demand for jobs and, eventually, higher wages and greater shared wealth.