Economics is fundamentally about choices and the impact of our choices on each other and on society. It is the social science that studies the choices that individuals, businesses, governments make as they cope with scarcity and the incentives that influence those choices.
Last week the Australian Bureau of Statistics (ABS) told us that the economy is suffering from an income recession. Our exports aren’t fetching the prices they used to – the terms of trade are down by around 9% for the year - and that means we can’t afford to buy as much from overseas as before.
The Commission of Audit is charged with finding savings by eliminating waste and duplication. The Australian National Preventive Health Agency is apparently an easy target but Professor Jane Hall says it's too soon to know the long-term savings it will create in health care.