Cormann warns mainstream parties

Mathias Cormann, Australia's longest-serving finance minister and now OECD secretary general, is urging mainstream political parties not to adopt populist policies like migration caps to address cost of living grievances.

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Copying populists loses twice

Cormann will tell Labor and the Coalition that mainstream parties adopting populist economics do not recover voters. They lose to the original, which voters prefer, and to the centre, which has nowhere else to go.

“Mainstream parties that respond to a populist surge by adopting its economics do not recover their voters. They lose twice: once to the original, which the electorate will always prefer to the copy, and once to the centre, which has nowhere else to go.”

Solve problems, not mimic them

Cormann will argue that delivering homes, lower energy costs, real wage growth and a credible budget makes the populist tide recede. Mimicking populists confirms they were right and only solves the problems they feed on.

“The way to defeat populism is to solve the problems it feeds on.”

Migrants boost employment

OECD research across Australia's regions shows that where more migrants arrived, employment among Australian-born workers grew faster, not slower, with no measurable effect on their wages.

Tariffs and caps fail

Cormann will say tariffs imposed by US president Donald Trump and proposed by One Nation would fail to address cost of living and could instead raise costs for farmers, miners and builders.

“There is no shortcut to a lower cost of living. There is no populist shortcut, through tariffs and caps and state banks.”

Only productivity works

Cormann believes Australia can only grow its way out through productivity.Anyone offering a quicker route is offering a poorer country.

“There is only the long way round: an economy that produces more, competes harder and grows faster than its costs … anyone offering you a quicker route is offering you a poorer country.”